Semcon strengthens its position within digital training through acquisition.
Semcon has made the acquisition of Stockholm-based company Xtractor, which will become part of business area Product Information. The acquisition means that Semcon is strengthening its position within digital product information through an enhanced expertise in the production of interactive web and mobile training as well as the implementation of Learning Management Systems (LMS).
Semcon currently has a world-leading offering within digital product information and has long experience of web-based training solutions in many different industries. The acquisition is expected to have a positive effect on the business area’s operating margin as well as Semcon’s earnings per share for 2020. Xtractor’s revenue for the previous fiscal year amounted to approximately SEK 50 million, with recurring revenues accounting for approximately 25 per cent.
We are very happy that Xtractor has now become part of Semcon. With this acquisition, we are strengthening our digital training offering to new and existing customers, both in Sweden and internationally. At the same time, we are growing in the Stockholm area in line with our strategy.
Xtractor provides digital training solutions to companies within several different industries. The company has operations in Stockholm with approximately 40 employees, having competencies within e-learning and development of LMS and LXP (Learning eXperience Platform), among other things. The acquisition of Xtractor further strengthens Semcon’s position and Semcon becomes one of the largest service providers in Sweden within digital training.
The acquisition means that we now have stable owners with a long-term perspective, that adds financial, technical and human resources to support in our joint effort to increase the pace of our product development and our continued growth.
Growth within the training area is driven, among other things, by comprehensive competency shifts within many different industries and an increasing maturity to digitalisation of traditional classroom training. New technologies for learning, such as microlearning, augmented reality and virtual reality, also provides the prerequisites for companies to increase the benefits from their training initiatives.
Our operations complement each other very well in terms of skills as well as geography. We have identified opportunities to both broaden our digital offering and create synergies, not least together with Semcon's offices outside of Sweden. The people and the culture at Xtractor match us very well at Semcon, which creates favourable conditions for successful growth together.