"Segulah's people and advisors were a huge asset. They opened doors at the right levels and often pointed us in the direction of potential customers or suitable follow-on acquisitions. Unlike many other investment firms, Segulah has relatively few portfolio companies, giving them the time to be a genuinely active owner." Kent Bladh, former CEO, TeliService

The Company today Teli Service (today A Novo Nordic) is one of the leading participants in the Nordic electronics aftermarket industry with offices in Sweden and Norway. Teli Service is focused on repair and service logistics for computer and telecom products performed on behalf of manufacturers.

Background Originally owned by the telecommunications carrier Telia, Teli Service was an in-house service unit providing hardware repair and service logistics for telecommunications products. Later its business was expanded to serving external customers, also adding services for computer products to its range. In 1997, Teli Service reported revenue of 170 MSEK and pretax earnings of 13 MSEK. Telia accounted for more than 65 percent of its revenue.

CEO Kent Bladh and Telia subsequently concluded that Teli Service would be more successful as a spin-off. Ownership ties to Telia had somewhat hampered the cultivation of external customers.

Opportunity Segulah and Kent Bladh recognized the potential for building a repair and logistics operation on a larger scale in a fragmented market dominated by mom-and-pop businesses and manufacturers' in-house workshops. The industry's economies of scale promised tremendous efficiency enhancements, creating room for a better, less-expensive product range, while improving Teli Service's revenue and profitability.

Segulah and the management team acquired 100% of Teli Service in November 1997. This was followed by two intense years of internal streamlining and expansion through outsourcing deals and acquisitions of two smaller competitors. WM-data, Compaq and Dell all chose Teli Service in a move to achieve better and less-expensive service. Teli Service also negotiated acquisitions in Norway, Denmark and Finland. The customer base was expanded to include numerous PC makers and resellers as well as the major telecommunications carriers in the region.

In three years, Teli Service grew its revenue from 167 to 319 MSEK, while boosting earnings from 13 to 35 MSEK.

Segulahïs value-add Segulah provided active counsel in matters pertaining to financing and acquisitions, since Teli Service had never previously been involved in an acquisition event. A board with outstanding industrial know-how was appointed in an effort to support management during this demanding phase of expansion. Teli Service employees were unequivocally enthusiastic about the ownership change.

Results In late 1999 Segulah was approached by France-based A Novo, the dominating player in southern Europe. Significant market synergies, it was believed, could be achieved through a tie-up between Teli Service and A Novo. In early 2000, A Novo acquired Teli Service, changing the name to A Novo Nordic. In 2004 the Nordic operation had 480 employees at six service units, which performed one million repairs.