Swedish IT consultancy Knowit has agreed to acquire local insurance software developer Insicon for an enterprise value of Skr35m ($3.6m).  

The acquisition agreement also includes a conditional earn-out, which is subject to the achievement of certain commercial targets.  

Knowit has projected that the earn-out will amount to roughly Skr50m and will be accounted for in the acquisition balance sheet upon the completion of the transaction, expected to occur in early July. 

Insicon, founded in 2009, employs around 50 staff, with a small management and sales unit in Sweden and a larger development and support organisation in Serbia. 

Its cloud-based platform supports automation, flexibility and quick deployment of new features, serving clients in the Nordic insurance market. 

Insicon CEO Måns Hulterström said: “We are now ready to take the next step with our cloud-based solution and see great potential in merging with Knowit. With Knowit as our new owner, we become a significantly stronger player.  

“With a stronger delivery organisation, we can together take a larger position in the Nordic and European markets.” 

The acquisition is expected to enhance Knowit’s fintech capabilities by adding a platform-based consulting service tailored to the banking, finance and insurance industries.  

The integration of Insicon into Knowit is planned for the autumn period, with the aim of creating synergies between their respective product offerings and extending Knowit’s reach into the insurance domain. 
  
Knowit CEO Per Wallentin stated: “Harnessing the drive and knowledge that exists within the Knowit organisation is an important part of our culture.  

“There are several examples of how this innovative capacity has led to the development of successful products and platform solutions that today are key complements to our broader service offering – creating value for our clients and an innovative environment for our employees.”