FSN Capital VI acquires majority stake in Dutch IT services provider ilionx

FSN Capital, a Nordic private equity investment company, has acquired a majority stake in Dutch IT services provider ilionx. The transaction is being done through FSN Capital VI, a fund supporting entrepreneurial businesses in the middle-market segment.

The terms of the deal were not disclosed by the parties involved but it comes just months after FSN Capital VI invested in German bakery chain Bäcker Görtz. FSN Capital VI, together with ilionx’s current management team, aims to accelerate the growth of Dutch IT services provider.

A trusted player in IT services

Headquartered in Utrecht, ilionx was founded more than 20 years ago and currently has over 1,200 employees across thirteen locations in the Netherlands. It offers digital strategy, cloud-oriented application development, data & AI solutions, hyper-automation services, and managed services to organisations.

The company offers services primarily to customers in regulated industries and the public sector. It has already delivered successful projects and implementations at healthcare institutions, (semi) governmental organisations, and commercial companies with over 500 employees.

The investment from FSN Capital will allow ilionx to continue its organic growth as it cements its position as a “trusted, long-term IT services provider.” The Nordic fund also sees opportunity for add-on acquisitions in the large and highly fragmented Dutch IT services market.

Marcus Egelstig, Partner at FSN Capital Partners, investment advisor to FSN Capital VI, says, “We are very excited that FSN Capital VI will join forces with ilionx to support the company in realising its strategy. We see ilionx as a very trustworthy IT partner for its customers with a strong backbone in highly competent employees, combined with an entrepreneurial spirit and customer-centric approach.”

A fragmented market

Despite being a fragmented market, the Dutch IT services market continues to enjoy a positive outlook. According to Research and Markets, the IT services market in the Netherlands is estimated to grow at a CAGR of 3.93 per cent between 2022 and 2027. It is estimated to grow from around $11.87B in 2021 to $13,463B by 2027.

As one of the few sectors to grow in 2020, the IT services industry plays a major role in the growth of the Dutch economy. With an increased demand for IT services due to digitisation and the adoption of key technologies like AI, machine learning, and blockchain, ilionx is uniquely placed in the regulated industry.

With a market share of 20 per cent, the government is the largest end user of IT services in the Netherlands with a focus on good governance, smart cities and citizen management.

“I am very confident that we can realise our ambitions with FSN. It is an organisation with a keen eye for the well-being of our employees,” says Jan Veltman, CEO of ilionx. “Together we offer a good environment for professionals, and we are involved in society as a whole.”

Veltman adds, “Sustainability, growth and people-centricity are extremely important for both FSN and us and I am pleased that we can reinforce each other in this, also towards our customers.”