In February 2016, FinnishNews wrote an column about a start-up company called Midaxo, that started a cloud-based platform for mergers and acquisitions (M&A) and project management.
Midaxo performed the impossible by getting Hewlett-Packard as one of their first key customers. That is no small feat! Their persistence was impeccable because one of the founders, Kalle Kilpi (see photo above), must have called HP a dozen times after a chance meeting in London, before his calls were finally returned. HP was looking to for a system where they would give them better control over the process of mergers and acquisitions and allow them to reduce processing costs and improve communications with the many different parties involved – lawyers, accountants, bankers and other consultants.
Midaxo have now completed €12.9m funding round comprising of €10.3m for the company and €2.6m for the existing shareholders – led by major growth investor Idinvest Partners, with the participation of the existing investors Tesi (Finnish Industry Investment) and EOC Capital. This B round brings Midaxo’s total funding to €18.6m and follows a period of sustained and rapid growth.
In 2017, Midaxo more than doubled its revenue and expanded its customer base to hundreds of leading corporations, consultants, and private equity firms, including over 40 companies on the Fortune 1000 list, such as HP, Philips, Daimler and Verizon.
After successfully entering the US, Midaxo is now focused on expanding its European operations, including into the Nordic region. Midaxo has 70 employees across four offices in Boston, Helsinki, Amsterdam, and Riga. Headcount has doubled over the past year and is set to further increase as the company is actively looking to recruit a number of high-quality software developers in Helsinki.
Finnvera has been one of the investors enabling Midaxo’s growth and internationalisation.
“Our co-operation with Midaxo has been excellent and we hope all the best for them in the future. Now that our role as an early stage risk sharer has been fulfilled and Midaxo’s future is secured by capable investors, the time for our exit is right,” says Heidi Ahonen, manager at Finnvera.
Midaxo helps companies run successful M&A and corporate development projects by minimizing deal risk and maximizing value creation.
“Virtually all larger corporations and 60% of mid-market companies actively use M&A to grow and accelerate their transformation. To consistently succeed in M&A, thought-leaders use purpose-built tools to drive systematic, transparent, and repeatable deal execution from opportunity identification through to integration. For example, their due diligence efforts take 50% less time and 50% less resources, enabling faster reaction and more thorough analysis. With its leading software, Midaxo is proud to support M&A professionals in their important and complex work,” says Ari Salonen, CEO at Midaxo.