Acquire, use, resell – IT
specialist swears by its lifecycle philosophy. Antonio Fabrizio
writes
Go deeper with GlobalData
Finnish ICT
equipment lifecycle specialist 3 Step IT has ambitious growth
plans, with strengthening its international network on top of the
list.
The company reported EBITDA growth of 35
percent to €10m in the year to 30 December 2010, compared to 2009.
Turnover rose by 37 percent to €300m for the year. The target for
2011 is €400m and, counting on a number of prospected acquisitions
and new markets, it aims to hit the €1bn target by 2015.
Last year, 3 Step IT completed two
acquisitions. In March, it acquired BNP Paribas’ leasing business
in Sweden, Norway and Denmark, which the French lender had acquired
through its own Fortis Lease acquisition. In December 2010, it
bought Sweden’s Smålandsbörsen Produktion. SMB now acts as 3 Step
IT’s Scandinavian logistics centre, providing remarketing and
logistics services to clients in the region.
During 2010, the company expanded to North
America and Russia, taking the total of its network to 12
countries. By the end of this year, it plans to add three more
countries – with one country to be announced as early as March or
April.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData3 Step IT’s model focuses on lifecycle
management. Chief executive Artti Aurasmaa claims that the company
has been a pioneer in this sector. “Five years ago, we were the
only company talking about lifecycle management. Now everyone seems
to be talking about it. We think it is the only way forward to be
in this market.”
UK director Jon Davies added: “This new model,
which is well developed in the Nordics, is now catching on in the
UK. The UK market is looking more and more to lifecycle solutions,
and is becoming less transaction-focused.”
In the UK, 3 Step IT works in partnership with
HSBC Equipment Finance. Davies said: “We bring customers to the
bank, and they bring customers to us. HSBC will provide the
funding, and we will provide the services, counting on our
experience in lifecycle management.”
The company plans similar partnerships with
lenders in the new countries where it plans to enter.
Remarketing is a core business of 3 Step IT’s
asset management. It manages the remarketing itself in the Nordics,
and works with local partners elsewhere. Over the course of the
years, it has remarketed 150,000 assets.
It has a 60-80 percent return rate on assets,
with residual values always treated as if the asset will come back.
The biggest second-hand markets, alongside the Nordics, are Eastern
Europe and North Africa. The company said it hasn’t been affected
by the recent unrest across the region, but is monitoring
developments closely.
Finland remains 3 Step IT’s biggest market. It
represented 60 percent of its new business last year. In 2011,
Aurasmaa expects that number to reduce to 50 percent, because of
the higher incidence of new business from abroad.
The company has also a strong presence in the
Baltics, which was affected by the financial crisis. Aurasmaa said:
“The market dropped some 80 percent at the peak of the crisis, but
things are getting better and since January customers have started
to invest again. We see those countries as very dynamic.”
Of the newest markets, Russia is seen as a big
opportunity, although not an easy market to be in because of higher
operating costs and bureaucracy challenges. It is managed by
Invigors’ adviser John Grimmett.
The company has also had a lot of demand from
the US market, and claims to be one of the few US providers of
lifecycle management at the moment.
“We will be testing our network this year, and
the growth we will see will be mostly organic growth,” Aurasmaa
said.
