IK Partners leads carve-out of parts of PwC Norway’s audit and advisory business alongside existing partners
IK Partners (“IK”) is pleased to announce that the IK Small Cap IV Fund (“IK SC IV”), together with re-investing partners from PwC Norway, has signed an agreement to acquire parts of PwC Norway’s audit, consulting and tax & legal services dedicated to local Norwegian clients (“the Company”). This represents the second transaction signed from IK SC IV, which held a final close on €2.0bn last month. Financial details of the transaction are not disclosed and completion of the transaction is subject to customary regulatory approvals.
The Company’s core offering focuses on audit services, including financial audits and attestation work such as independent reviews and technical compilation for financial and tax reporting. Primarily serving local Norwegian clients, it also provides consulting services in strategy, business transformation and operations, as well as tax and legal services. Following the carve-out from PwC Norway, the Company will be the second-largest independent audit firm in its target market, with over 280 individuals spread across 20 offices in seven different geographical locations.
Backed by IK’s proven track record in professional services and carve-outs, the Company aims to strengthen its position as a leading audit and advisory firm for Norwegian clients. IK will leverage its platform and collaborate with the incumbent partner group to accelerate growth in the core Norwegian market, while continuing to attract and develop top talent. Strategic investments in technology and delivery model optimisation will drive efficiency and enhance the quality of audits and compliance services. In parallel, the Company will look to pursue consolidation opportunities in the highly fragmented Norwegian and broader Nordic market.
Erik Sønsterud, CEO of the newly formed Company, commented: “We are very excited about the prospect of working closely with the team at IK, leveraging IK’s platform and experience in the sector to increase our market share in the audit and advisory space in Norway and beyond. With a core base of both experienced employees and loyal clients across Norway, we are well-positioned to explore attractive M&A prospects, source new business opportunities and improve our operational efficiency to take our quality offering to an even broader range of clients.”
Henrik Geijer, partner at IK and advisor to the IK Small Cap IV Fund, added:“We are pleased to announce this investment, which follows shortly after the successful close of our largest ever Small Cap fund. This partnership represents an opportunity to back a market-leading business and team with compelling growth prospects. By leveraging the operational expertise of our pan-European team, we aim to accelerate growth through several organic initiatives and a well-identified pipeline of M&A opportunities to create a leading Norwegian audit firm. We look forward to working alongside Erik and his team to support the Company’s continued expansion both locally and internationally.”