Egmont Publishing has acquired part of the award-winning digital media agency KAN, marking a further step in a strategic drive to grow Egmont’s digital communications and marketing businesses.
Per Kjellander, CEO Egmont Publishing Sweden, Per Harrysson, KAN co-founder and CEO and Peter Schrøder, M&A director in Egmont Publishing.
KAN is one of Sweden’s leading digital communications agencies and ranked as Agency of the Year for 2015 in a comprehensive study by Regi Research & Strategi. Egmont Publishing has acquired a 45 percent stake in KAN, becoming the largest shareholder. KAN’s founders, who all remain as company employees, hold the remaining equity.
“KAN has great potential and fits very well with Egmont’s Marketing Services strategy. KAN has an impressive track record of developing strong long-term relations with its customers and possesses outstanding digital expertise and creativity. They have a strong management team that will take the company on its new common journey with Egmont,” said M&A director in Egmont Publishing, Peter Schrøder.
Founded in Malmö in 2005, KAN has evolved into southern Sweden’s leading digital communications agency, developing a strong full service offering of communications concepts, strategic advice, innovation, technology, content and analysis. KAN has approximately 60 employees and a client base including national and international brands such as Sony Mobile, E.ON, Tetra Pak, Ikano, BoKlok, the City of Malmö and Studentlitteratur. In 2015 the company recorded a profit of SEK 7.2 million (aprox. EUR 0.7 million) on revenue of SEK 51 million (aprox. EUR 5.2 million).
“Egmont will continue to invest in Digital Marketing Services in the Nordic countries and we expect more acpuisitions in 2017,” said Peter Schrøder.
Per Kjellander, CEO Egmont Publishing Sweden, will become chairman of KAN’s board. Peter Schrøder will also join the board.
Per Harrysson, KAN co-founder and CEO, said: “I am delighted to welcome Egmont into the KAN family. KAN is in an expansive phase at a time of rapid market change as digitalisation gathers pace. Our approach has been a recipe for success that has made us unique and helped forge the long-term relationships we enjoy with our clients. We now want to take the next step in our journey and to confront the changes we see in the market. We are looking forward to moving up a gear and growing together with Egmont.”
Egmont has invested in several leading Nordic communications agencies, including content marketing agency Klintberg/Niléhn, digital communications provider Sempro and social media specialist Patchwork. Egmont has also made significant e-commerce investments in firms like Bagaren & Kocken, Jollyroom and Med24. Egmont expects revenue from e-commerce alone to exceed EUR 100 million in 2016.