Our Growth Acceleration Platform

A platform for business development and organic growth

The organic growth of our subsidiaries is the second of the two fundamental components of our strategy. As part of Addnode Group, businesses get the opportunity to keep developing their businesses supported by the Group and the division they become part of.

Strategy for organic growth

Addnode Group’s strategy for driving organic growth starts from offering an attractive platform that entrepreneurial businesses can grow and evolve from. This platform offers:

1. Decentralized responsibility and authority

Our operational governance model is based on decentralization, and delegates responsibility with authority to subsidiaries. Operational decisions should be taken as close to customers and end-users as possible, which requires skilled, expert executives that take responsibility for developing their business in their markets in good times and bad. To ensure a long-term perspective in business development, each subsidiary pursues a strategic five-year plan, updated regularly as their business environments change. Subsidiaries enjoy operational freedom to manage their businesses, while having to comply with Group-wide policies and guidelines on financial reporting, internal controls, regulatory compliance, and our Code of Conduct.

Group companies manage their operations under their individual corporate name in a collective structure where Addnode Group is a cohesive and supporting brand. This means the enterprises can retain their individuality and entrepreneurial spirit, while simultaneously enjoying the benefits that a large, listed company brings in the form of recognition, credibility, financial stability and access to capital for continued organic expansion and acquisitions.

2. Strategic competence, financial resources and M&A expertise

Being part of Addnode Group provides subsidiaries with access to relevant skills at a strategic level. Because there are clear contact points between companies and divisional operations, this also creates the potential for a valuable exchange of best practice, in business strategy, product development, brand portfolios, cybersecurity, sustainability, customer offerings and cost rationalization, for example.

With operations in over 20 countries, a large employee headcount and a listing on the Stockholm Stock Exchange, Addnode Group’s overall size is also an asset to its subsidiaries. Addnode Group has the financial capacity to support its subsidiaries’ expansion and investment needs, which may involve supplementary acquisitions or product development. This capability is not only an inherent strength, but also helps make our companies more attractive in their relationships with customers and employees.

3. Value-creating synergies and collaborations

Activities and collaborations are continuously carried out within our three divisions and across divisional boundaries to leverage synergies in areas such as sales, product development and delivery capacity. These activities are initiated both through regular scheduled forums and meetings, and through spontaneously initiated contacts.

Examples of activities that promote synergies within the Group:

• Exchange of skills and best practice. Some functions and skills segments offer substantial potential to share experience and best practice, and sometimes resources within the Group. These opportunities usually arise in business development, cybersecurity, accounting and finance, sustainability, HR, communications, and marketing.
• Upselling opportunities. Opportunities for upselling by supplying ancillary products and services from another Group company and/or offering products and services to customers of other Group companies.
• Stronger employer branding. The subsidiary’s attractiveness as an employer is enhanced through access to Group-wide activities, such as leadership programs, trainee programs and innovation competitions. Being part of a larger Group also means more career opportunities.
• Delivery capacity. Alongside their Group counterparts, companies can achieve the necessary critical capacity to take on larger assignments than they could independently. The Group also offers access to competence centers like Addnode India, with 220 employees who support other Addnode Group companies on software development and implementation services.
• Strong partnerships. Access to the Group’s partnerships with software providers. This results in better profitability and a superior customer offering for each subsidiary.

Addnode Group’s model for organic growth