After several years as an active owner in Careium, Accendo Capital has now exited its investment in the Swedish telecare provider, bringing to a close a multi-year journey that began with the spin-off of Careium from Doro in 2021. The exit also comes at a time when Accendo believes Nordic small- and micro-caps may be approaching one of their most attractive entry points in years, following a prolonged period of weak sentiment, institutional outflows, and sharply compressed valuations across the segment.
After investing in Doro, Accendo came to view Doro’s senior mobile phone operations and Careium telecare activities as fundamentally different businesses competing for capital, management attention, and investor appeal. While Doro’s hardware operations generated stable cash flows but offered limited growth prospects, Careium provided exposure to structurally growing digital care services, recurring revenues, and consolidation opportunities within a fragmented market.
For Accendo, the investment evolved from a sum-of-the-parts case centered on unlocking value within Doro into a broader operational turnaround story for Careium involving governance changes, leadership renewal, and strategic repositioning. “It became quite clear that the company could not reach its full potential under one roof,” says Kai Tavakka, Managing Partner of Accendo Capital. “Both businesses deserved independent futures, dedicated management teams, and the right shareholder base.”
“It became quite clear that the company could not reach its full potential under one roof. Both businesses deserved independent futures, dedicated management teams, and the right shareholder base.”
Kai Tavakka, Managing Partner of Accendo Capital.
The separation ultimately paved the way for Doro itself to later receive a takeover offer at a premium valuation, while Careium embarked on its own independent journey as a listed telecare specialist. But the post-spin-off period proved challenging. “We received Careium as a spin-off with structural problems,” says Tavakka. Careium struggled with operational and integration issues tied to previous acquisitions, and the newly listed company lost roughly two-thirds of its value during the first year following the spin-off.
Accendo nevertheless maintained its commitment to the company. “We also wanted to demonstrate long-term commitment as shareholders. Small-cap markets need committed, long-term active owners who ensure companies have the right people and energy,” says Tavakka. Accendo subsequently became heavily involved in Careium’s governance and strategic development, with Kai Tavakka serving on the board for four years as the firm participated in board refreshment, leadership changes, and long-term strategic positioning efforts.
“We also wanted to demonstrate long-term commitment as shareholders. Small-cap markets need committed, long-term active owners who ensure companies have the right people and energy.”
Kai Tavakka, Managing Partner of Accendo Capital.
Accendo exited its stake by selling shares to an industrial shareholder connected to Careium’s hardware ecosystem, to one of the existing larger Swedish shareholders, and to the broader market. Tavakka believes the value-adding owners that remain with the company can further strengthen Careium’s long-term positioning in digital telecare markets. “We genuinely believe the business improved during our ownership period. We are proud of the company and proud of the journey.”
Seeing Deep Value in Nordic Small- and Micro-Caps
While Accendo now considers its Careium chapter complete, Tavakka says the experience has further strengthened the firm’s conviction that Nordic small- and micro-caps are entering one of the most compelling opportunity environments seen in years. According to Tavakka, the combination of weak consumer sentiment, higher interest rates, disappointing post-IPO performance, and persistent institutional outflows has created an environment where valuations have disconnected materially from underlying company fundamentals. “Some institutional investors have effectively thrown in the towel.”
“We feel that this is historically an attractive moment. The sector has been beaten down significantly, but public markets for small- and micro-cap companies are necessary for innovation and growth.”
Kai Tavakka, Managing Partner of Accendo Capital.
“We feel that this is historically an attractive moment,” says Tavakka. “The sector has been beaten down significantly, but public markets for small- and micro-cap companies are necessary for innovation and growth.” He points to a sharp compression in valuation multiples across the market despite meaningful operational improvements at many companies over recent years. “Five years ago, Accendo’s portfolio companies traded at eight times sales,” he says. “Today, these businesses trade at two times EV-to-sales despite having better products, stronger technology, and improved cost structures.”
However, Tavakka believes the disconnect between fundamentals and valuations is creating opportunities for active investors willing to take influential ownership stakes and engage directly with companies both operationally and strategically. “The segment has been beaten down heavily, but when it recovers, it could recover strongly,” he says. Even if companies listed on the Nasdaq First North Growth Market were to double in value from current levels, valuations would still remain below their pre-Covid highs.
