DevOps provider Eficode lures Investcorp’s investment

Alternative investment firm Investcorp has invested an undisclosed amount of funding to buy a majority stake in Helsinki-based Eficode, a DevOps consulting house formed to give enterprises agile IT building capacity.

The transaction will close in the first quarter of next year, contingent on customary contractual conditions and sanctioning by regulators. Further terms of the deal were not disclosed.

DevOps generally refers to software development projects that integrate IT operations with software development, looking to reduce the lifecycle of software delivery and patch updates.

Founded in 2005, Eficode’s DevOps offering includes cloud migration, data visualisation and value stream management. The company has seen massive revenue growth; it currently generates around €150 million compared to €22 million four years ago.

The business has a presence in 10 global markets, including its native Finland but also Sweden, Denmark, Germany, Switzerland, the UK and the US. Its tools are available in the ecosystems of three leading IT developer repositories: Atlassian, GitHub and GitLab.

Following its investment, Investicorp will work with Eficode to support its expansion. The company currently has around 600 staff to serve more than 1,400 customers.

Daniel Lopez-Cruz, head of European private equity at Investcorp, said: “We are thrilled to be partnering with Eficode, a leader within the large, fast-growing and resilient DevOps market. 

“Eficode’s services are becoming increasingly important to companies in all industries as they go through digital transformation.

“Eficode provides mission-critical services that enable companies to meet the digital expectations of their customers, take their R&D capabilities to the next level, improve efficiency and cost management, and maintain their competitive edge.”

The funds can be expected to let Eficode proceed with the next phase of its growth plans, including further expansion internationally. Among partners, its customer base includes Swedish carmaker Volvo, banking group Royal Bank of Scotland, and Finnish communications firm Nokia. 

Risto Virkkala, founder of Eficode, added: “It’s great to partner with Investcorp who have a strong track record of supporting founder-led businesses and those in the consultancy and broader professional services sector.

“Growth in the DevOps space is nowhere close to slowing down, as every company needs to put software development capabilities and software products as their strategic pillars.

“Now with the backing of Investcorp, we expect to significantly accelerate our growth worldwide to build Eficode to be the leading DevOps services house in the world.”