MilDef has a long-term strategy for sustainable growth with increased profitability. Future development is based on a combination of organic and acquisition-driven growth. Increased revenue growth rate is prioritized higher than increased profit margin in this stage of the company’s development, which is also reflected in the financial targets.
As a leading provider of tactical IT, MilDef has linked its strategies to expansion in the three areas hardware, services, and software. Common characteristics for these are robustness, security, and customization – important areas that are further actualized by increased demands for efficient IT systems to secure critical national infrastructure.
Three foundations for growth build the company’s future expansion:
The company has a hybrid sales model where its own sales companies operate mainly on local markets and a partner network addresses other priority markets. There is a focus on the Nordic region, USA, and selected countries within the EU and NATO, and a few other markets. Markets are evaluated for factors that indicate repeatable success with the company’s portfolio.
The partner model also produces interesting candidates for the acquisition strategy.
The tactical IT domain consists of the dimensions hardware, services, and software. The company’s historical growth and success are mainly based on hardware. Tomorrow’s solutions increasingly consist of a combination of these dimensions, where fewer suppliers deliver more complete solutions.
This dimensional expansion, combined with a consolidation of suppliers, is addressed by the company through systematically building a complete portfolio of infrastructural IT. Hardware and software account for the technical part of digitalization and services targets the entire spectrum of tactical IT; from strategic IT, through change management and all the way to operational implementation.
With a structured process for identifying, evaluating, and implementing acquisition transactions, the company captures the opportunities of a fragmented market.
MilDef has learned from its three acquisitions in the period 2016-2021 to build an effective model of acquisitions and integrations. The model allows the company to increase its pace of acquisitions, increasing growth and the pace of the company’s complementary strategies.
Acquisition opportunities are identified to meet the below goals:
- Geographical expansion.
- Complementary technologies and products.
- Services in tactical IT.
- Infrastructural software.
A number of criteria shall be met to qualify the acquisition candidates:
- Untapped potential in the existing offering.
- Added value through MilDef’s marketing channels and/or organization.
- Compatible corporate culture and values.
- Continued commitment from key personnel.