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Why invest in Atea?

10 reasons to invest in Atea

Atea differentiates from its competitors by providing a complete range of IT infrastructure solutions, with a large and highly trained service team to support its customers in capturing maximum value from their IT investments. The competitive landscape is characterized by smaller resellers and niche players with competence in specific products or customer segments.

1. Market leader in Nordic and Baltic regions

Atea is by far the largest IT infrastructure provider in the Nordic and Baltic region, with an unrivalled scale and competitive position in its markets. Atea has over 7,500 employees across 85 cities in the Nordics and Baltics - and with gross sales of NOK 41 million in 2021, we are about three times larger than our biggest competitor.

2. Growing demand for IT infrastructure

For many years, businesses and public sector organizations have been steadily increasing their investments in information technology - to digitally transform their operations, drive innovation and improve productivity. This “digital transformation” trend has resulted in continuous growth in demand for IT infrastructure.

According to estimates from IDC, the Nordic market for IT infrastructure has grown at an average rate of approximately 5% per year over the last decade, with consistent growth and relatively low exposure to the economic cycle.

3. Solid customer base

Atea has a large base of long-term customer relationships with public sector and large corporate organizations. Atea specializes in serving customers with large and complex IT requirements by offering a complete range of products and a highly competent service team.

More than 60% of Atea’s revenue comes from public sector frame agreements, with an average term of approximately three years. The remaining 30-40% come from businesses, with a high percentage of sales to large corporate customers in the Nordic region.

4. Strength of local markets

The Nordic region is economically robust, and an early adopter of new technologies. The Nordic public sector is investing heavily in “digital transformation” to improve the quality and efficiency of public services. Large corporate customers in the Nordics are investing in IT to improve employee productivity and spur innovation in a high-cost labor market.

5. Unique competitive position

Atea has a unique competitive position as the largest provider of IT infrastructure in the Nordic and Baltic markets. Due to its scale, Atea has the highest level of strategic partnership with top IT vendors. This creates critical competitive advantages in purchasing and sales support, and allows Atea to stay at the forefront of the latest IT trends and product releases.

Atea’s position as a full-service IT infrastructure partner is also unique in its markets. With its staff of over 4000 service personnel, Atea can support and manage the entire IT environments of the most demanding customers – whatever their requirements. These service capabilities are becoming increasingly important to serve large customers, as enterprise IT becomes more business critical and complex.

Finally, Atea has an unmatched local presence across all regions in the Nordics and Baltics. Atea has offices in 85 cities, with experts who are always closest to the customer and are supported by the full capabilities of the Atea Group.

6. Long-term financial performance

Based on its unique competitive position in a growing market, Atea has a long and consistent track record of growth in sales and operating profit. Over the last four years (2018 – 2021), Atea has increased its sales by 6% per year and its operating profit by 15% per year.

7. Strong cash flow and balance sheet

Atea’s business requires very low working capital and capital expenditure. For this reason, Atea has consistently generated strong free cash flow.

Atea’s strong free cash flow enables the company to pay a high dividend to shareholders while still maintaining a very healthy balance sheet. At the end of 2021, Atea had a positive net financial position of NOK 822 million (cash, less interest bearing debt), as defined by its loan covenants.

8. High dividend payout

Atea's policy is to distribute approximately 70-100 percent of net profit after tax to shareholders in the form of a dividend. During 2022, Atea will pay a dividend of NOK 5.50 per share, representing a payout of over 80% of its net profit in the prior year.

9. Sustainability

Atea is an industry leader in sustainability. We provide customers with advice on how to reduce their carbon footprint through IT and are the largest provider of IT recycling services in the Nordic region. Our Atea Sustainability Focus program uses the power of our customer base to improve standards within the IT supply chain.

Atea has won numerous recognitions for our efforts within sustainability, including a ranking as the world’s most sustainable company (2022) in the IT Services Division by Corporate Knights, a globally respected research and media company. In addition, we have earned the highest rating (platinum) in environmental and social performance by EcoVadis for three years in a row, ranking Atea among the top 1% of more than 90,000 companies evaluated.

10. Future opportunities

Atea’s unique competitive advantages creates excellent opportunities for Atea to develop its business in a growing market. In addition to organic growth, Atea has additional opportunities to drive incremental sales and enhance margins.

In 2022, Atea launched the “One Atea” program to align its operations and coordinate execution of strategy across countries. The Atea Group was formed through the merger of 50 IT companies from 2006 – 2015, which were consolidated into national business units. There remains significant potential for Atea to strengthen its business capabilities and improve profitability through closer integration of its operations across borders.

In addition, Atea sees business opportunities to further drive market consolidation through selectively acquiring companies. The IT infrastructure market is consolidating across all global markets as scale becomes a critical competitive advantage. As the largest provider of IT infrastructure in the Nordics, Atea has an excellent platform for integrating acquired companies which can be purchased at an attractive price.

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