Smartum Acquisition: Key Details, Impact, and What Comes Next

Epassi's acquisition of Smartum marks a significant milestone in the employee benefits sector. By joining forces, these two Finnish companies aim to enhance their market presence and expertise across Europe. This strategic move is set to bolster Epassi's growth ambitions, offering a broader range of services and innovative solutions to their extensive customer base.

What Is Smartum?

Smartum Oy, a Finnish company, specializes in providing a diverse range of tax-free employee benefits, including lunch, sports, culture, massage, commuting, and health care benefits. Their platforms, Smartum Plus and Smartum Saldo, facilitate the management and distribution of these benefits. As the largest provider in Finland, Smartum stands out with its comprehensive benefit options, extensive partner network of nearly 40,000 locations, and modern, flexible solutions designed to enhance employee well-being and job satisfaction.

Who Acquired Smartum?

Epassi provides a comprehensive solution for managing employee benefits through a single app, serving employees, employers, and merchants. Key products include lunch, sport, culture, well-being, and commuting benefits, along with the Epassi Flex system that combines multiple benefits under one budget. Epassi also offers a specific bike benefit and a marketplace for employees to utilize their benefits. With the largest merchant network in Finland, Epassi holds a strong market position and significant influence in the industry.

When Was Smartum Acquired?

Epassi acquired Smartum on September 10, 2024. This acquisition aligns with the growing trend of consolidating expertise and resources in the employee benefits sector. At the time, the industry was experiencing a surge in demand for mobile payment solutions and comprehensive, flexible benefit offerings. The move is part of Epassi's strategy to expand its market presence in Europe and enhance its product development capabilities, reflecting broader fintech growth and a focus on improving employee well-being.

Why Was Smartum Acquired?

• Market Expansion: The acquisition of Smartum supports Epassi’s growth ambitions and enhances its expertise in the employee benefit market. By integrating Smartum, Epassi expands its operations across multiple European countries, including Sweden, the United Kingdom, Ireland, Italy, Germany, and the Netherlands. This strategic move allows Epassi to invest more in product development, offering a broader range of services and more comprehensive and flexible product solutions.
• Technology Integration: Epassi benefits significantly from Smartum's technology, which complements its unique and scalable solution that combines all benefits into one user-friendly service. The collaboration enables the combined entity to better serve its customers, partners, and users, reflecting in an even broader range of services. Epassi’s focus on fully digital and mobile-based employment benefits is further strengthened by this acquisition.
• Competitive Advantage: The acquisition of Smartum enhances Epassi's competitive position in the employee benefits sector. Epassi, already recognized as a leading fintech company and one of the fastest-growing companies in Europe by the Financial Times, gains additional expertise and market presence through Smartum. This merger brings together two innovative companies, solidifying Epassi's leadership in the Nordic region and providing a significant edge over competitors.

Acquisition Terms

• Acquisition Price: The details of the transaction have not been disclosed.
• Payment Method: The Orange Company, the seller, has become one of Epassi’s shareholders as part of the deal.
• Key Conditions or Agreements:
  • Smartum will become part of Epassi Group.
  • Both companies will continue their business operations as before.
  • The partnership will allow for more investment in product development.
  • The Orange Company has become one of Epassi’s shareholders.

Impact on Smartum

The acquisition of Smartum by Epassi has led to significant changes in operations and management. Smartum is now part of the Epassi Group, with The Orange Company becoming one of Epassi’s shareholders. Despite this integration, both companies will continue their business operations as before, ensuring a seamless transition for employees and customers. This strategic move is expected to enhance Epassi's market presence and operational efficiency, leveraging Smartum's established network and expertise in employee benefits.

In terms of product offerings and services, the acquisition promises a broader range of services and more comprehensive, flexible product solutions. The partnership will allow for increased investment in product development, benefiting customers, partners, and users. While specific employee and customer reactions were not detailed, the positive statements from the CEOs of both companies suggest a favorable outlook. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.