Though parts of the European market, like public equity, have experienced a recent decline, there are still areas with potential for investors. Following up on our coverage of how Swedish private equity endured volatility in 2022, we’re taking another look into the Swedish market and what investors are targeting. In this blog, we highlight the top industry verticals in Sweden by capital invested and some of their relevant statistics.
*Based on platform data collected on February 2, 2023. Data is subject to change.
1. Manufacturing
Total capital invested: €159.6B
Deals in Sweden: 4,713
Median deal size: €4.3M
Manufacturing is a major contributor to the Swedish economy, with businesses in the vertical contributing 20% of the country’s total GDP in 2020. Sweden’s most commonly made items are steel, automotive components, industrial equipment, and food processing equipment, with some of its top producers including the Absolut Company and Veoneer. The largest deal relating to this vertical was for Swedish Match, a smokeless tobacco company acquired by Philip Morris International through an M&A deal for €15.2 billion.
2. TMT
Total capital invested: €149.5B
Deals in Sweden: 9,037
Median deal size: €1.6M
Like other Nordic countries, Sweden has a strong technology, media, and telecom (TMT) presence, with 93% of citizens having at-home internet access in 2021. As such, Sweden is home to a variety of web and telecom-based companies, such as GlobalConnect, an internet provider that not only renders service to Swedish households, but also users in Norway, Denmark, Finland, and Northern Germany. Sweden’s most significant TMT deal was the purchase of industrial technology provider Hexagon for €17.3 billion.
3. Industrials
Total capital invested: €101.3B
Deals in Sweden: 4,541
Median deal size: €3.5M
Similar to manufacturing, industrials also play a significant role in Sweden. The industrial vertical, as captured on PitchBook, is characterized by the provision of industrial supplies and services, distribution operations and transportation services. It is exemplified by companies like Volvo, which in addition to producing motor vehicles is also responsible for infrastructural efforts and power solutions for industrial and marine applications. The largest deal in Swedish industrials was for Scania CV, which specializes in sustainable vehicles for both transportation and construction sectors and was acquired €6.5 billion.
4. Mobile
Total capital invested: €35.2B
Deals in Sweden: 2,410
Median deal size: €0.9M
Given Sweden’s affinity for telecom and technology, it may not come as a surprise that the country is also behind a variety of successful mobile apps and services. For example, the buy-now-pay-later online financing service, Klarna, is based in Stockholm, as is the Spotify music streaming platform. Other important companies in Sweden that fit into this vertical include Paypal subsidiary Zettle and Embracer Group, who owns various game developers. The largest deal in the Swedish mobile market was for Minecraft, which was acquired by Microsoft for €1.9 billion.
5. Cleantech
Total capital invested: €27.4B
Deals in Sweden: 1,708
Median deal size: €1.2M
Sustainability is a valued quality for businesses in Sweden—so much so that the Swedish government has even provided grant funding to sustainable startups through the Swedish Energy Agency. This vertical encompasses a wide range of businesses, from the eco-friendly electric vehicle batteries produced by Northvolt to Bergvik Skog Öst, who drives forest development efforts in Sweden. The largest Swedish cleantech deal was the buyout of Stockholm Exergi, led by APG Group, who purchased a controlling stake in the utilities company for €3.6 billion in 2021.
6. Oil and Gas
Total capital invested: €24.7B
Deals in Sweden: 275
Median deal size: €5.3M
With limited access to fossil fuels, Sweden mainly relies on imported fuel sources. Despite a significant push into renewable energy, the country is still dependent on oil and natural gas, which accounts for the prominence of this vertical. Companies in oil and gas include refineries like Preem and oil exploration services like those provided at the Johan Sverdrup oil field. The largest deal within this vertical was acquisition of Lundin Energy, an oil and gas producing company, by Aker BP for €13.2 billion.
7. Life Sciences
Total capital invested: €23.6B
Deals in Sweden: 1,476
Median deal size: €1.9M
Sweden is a very prolific country with a specific focus on healthcare in terms of life science. This is reflected in healthcare companies encompassing all of its largest deals within this vertical. These companies include services like diagnostics, seen in the company ImmunoDiagnostics, a subsidiary of Thermo Fisher, and Q-Med, which specializes in medical implants. The most significant life science deal in Sweden was for the drug discovery company Swedish Orphan Biovitrum drug, which treats rare diseases in hematology and immunology. It was acquired for €6.9 billion.
8. SaaS
Total capital invested: €23B
Deals in Sweden: 2,534
Median deal size: €1M
Software as a service (SaaS) is an emerging industry throughout various parts of the world, and Sweden is no exception. It is built on the distribution of customized, often subscription based software solutions hosted by the developer rather than the client company. The largest deal relating to the SaaS vertical involved Nasdaq Stockholm, which offers an automated securities trading platform, and was acquired in 2008 for €4.4 billion.
9. Fintech
Total capital invested: €18.9B
Deals in Sweden: 968
Median deal size: €1.7M
Despite recent setbacks in the European fintech market, there is still plenty of capital being allocated towards its startups and investors that continue to see potential, making fintech companies in Sweden a space to watch. Looking at some of the highest valued companies in fintech, Stockholm stands out as a hub for many of its frontrunners, including payment processing platforms Worldine and Point International. The highest valued deal in Swedish fintech was Visa‘s acquisition of Tink, an online open banking platform, for €1.9 billion.
Frequently asked questions
What is life science?
Life science is an umbrella term for various disciplines relating to human life, plants, animals, and microorganisms.
What is another name for life science?
Biology is the study of life and the life science classification includes it and fields like anatomy, genetics, and neuroscience.
How many fintech companies are in Europe?
According to the PitchBook Platform, there are just under 10,000 fintech companies in Europe.
Why does Sweden have so many tech companies?
Sweden’s tech company growth is the result of market reforms from the 1990s that, among other initiatives, included government investments in providing computers and internet access to Swedish citizens.
Want to dive deeper into the European market?
Read the 2023 Nordic Private Capital Breakdown
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