Universal Avenue is continuing to scale up its product team with the acquisition of Varvet, a successful digital agency. The deal is a strategic move aimed at boosting the investments in Universal Avenue´s technical platform. Universal Avenue has also secured an additional USD 6 million of funding through a stock convertible bond from MOOR Capital.
Digital agency Varvet has teamed with clients to implement change through customized digital solutions, tools and apps since its founding in 2008. The agency has worked with companies ranging from startups to large, well-established corporations such as Electronic Arts and Hemnet. Universal Avenue and Varvet have cooperated during the last year.
“Digital development is the core of our business model. We’re delighted that Varvet and its team of amazing developers are joining the Universal Avenue family. The Varvet team will help us accelerate and strengthen our ability to meet increasing market demand for our platform,” says Johan Lilja, CEO and founder of Universal Avenue.
Universal Avenue digitalizes small and medium-sized businesses, by providing a platform of turnkey digital solutions. Over 25,000 businesses have embarked on their digitalization process thanks to Universal Avenue´s platform and many strong partners are active on the platform.
“We see huge potential in Universal Avenue´s business model and their digital platform. Varvet and Universal Avenue are a great fit thanks to our shared ambition of creating digital solutions that actually make a difference,” says Carl-Johan Kihlbom, a partner at Varvet.
In conjunction with the acquisition, Carl-Johan Kihlbom will join the Universal Avenue board of directors.
Further, Universal Avenue has secured an additional USD 6 million of funding through a stock convertible bond from MOOR Capital. Simultaneously, one of the previously acquired bonds worth USD 1 million dollars has been converted.
“Universal Avenue is an underestimated player in the market. Our increased engagement in the company demonstrates that we believe in the business and recognize its potential. The acquisition of Varvet can accelerate Universal Avenue´s deliverables and will strengthen the company´s potential in Sweden and globally,” says Kaj Hed, from MOOR Capital.