Mapon issues a €3 million bond to finance acquisitions

  • 2024-03-13

Mapon, one of Northern Europe's leading fleet management solution providers, has attracted private and institutional investors who have invested €3 million into the company's bonds. The funding will be used to finance company acquisitions and further expand Mapon's operations in Europe. 

With a client-centric approach, professional and committed team, and continuous product development, Mapon aims to maintain its annual growth rate of nearly 30%, which it has achieved over the past five years, constantly beating the market. According to unaudited data, the company's turnover reached €17.3 million in 2023. This year, it is estimated to exceed €22 million. 

Since it was founded, Mapon has experienced substantial organic growth and expanded through strategic acquisitions. Mapon has a branch in Spain, and it is represented in Finland and Denmark. Over the past seven years, Mapon has successfully acquired companies and client portfolios in Estonia, Finland, Lithuania, and Denmark, becoming one of the industry leaders both in the Baltics and Northern Europe.

“We'll use the funds raised in the bond issue to make similar deals in the future. I'm certain that this opportunity will let us further strengthen our position in our current markets and invest in opening new branches in Europe,” says Andris Dzudzilo, co-CEO of Mapon. 

The bond issue was organized in cooperation with Signet Bank, legal advisor COBALT, and collateral agent Eversheds Sutherland Bitans. The long-term bonds with principal repayment at the end of the term provide Mapon with additional working capital to expand its business further. It also enables the company to quickly react to potential acquisition opportunities. 

“We're excited that an ambitious local company is expanding its operations and making acquisitions outside of Latvia, financed by capital market instruments. The IT industry is very important to the Latvian economy, and we're happy to see that local IT companies choose to issue bonds to expand their growth. The best indicator of Mapon's financial stability and professional management team is the demand from investors, which exceeded the bonds offered almost three times,” adds Edmunds Antufjevs, Managing Director of Investment Banking at Signet Bank. 

The bonds were offered to investors in a private placement and were substantially oversubscribed. Within a year, the bonds will be listed on the Nasdaq Riga First North multilateral trading facility. 

About Mapon

Mapon, a Draugiem Group company, is one of Northern Europe's leading fleet management and asset-tracking solution providers. Mapon is used by over 30,000 customers and has a vast network of partners across six continents. Customers have tracked more than 30 billion kilometers using Mapon solutions. Currently, the company employs 180 people. 

About Signet Bank

Signet Bank was founded in 1991 as one of the first banks in independent Latvia. The bank's strategy is focused on financing and capital management for local entrepreneurs and their businesses. Since the beginning of 2021, Signet Bank has provided almost €500 million in funding to its customers through loans and bonds.