2025-10-21
Henrik Jerner, CEO of Northern CapSek Ventures AB, talks about the company’s ongoing process regarding a potential merger with portfolio company Arctic Space Technologies. Henrik also comments on the rights issue that starts today, October 21, and runs until November 4, focusing on how the net proceeds are intended to provide financial flexibility for the structural transaction, while also enabling selective add-on investments and increased ownership stakes in promising portfolio companies. Finally, he discusses key milestones and triggers, including CapSek’s paths forward regardless of whether the deal with Arctic Space Technologies is completed or not.
CapSek is a unique investment company. Tell us about your investment philosophy.
CapSek invests in unlisted tech companies located in Swedish growth regions outside Stockholm. Those of us working at CapSek have long-established networks and partnerships in areas around Luleå/Skellefteå and Gothenburg/Malmö. In these regions, there are many skilled tech entrepreneurs, while competition from other investors remains low. We look where others don’t.
The companies must have a scalable business model, which for us primarily means software companies, and they should target a (potentially) global and large market. When we invest, we want to see proof that the business model works — this can be in the form of key contracts already in place and/or scalable revenues, preferably in the range of SEK 3–5 million on an annual basis.
CapSek is an engaged owner that works closely with the companies in its portfolio. We are primarily minority owners since we invest in entrepreneurs — and they are the ones who should run the company. We take a long-term approach, and because we are not a fund, we have no fixed time limit for divesting our holdings. However, it is through exits that the created value becomes visible, and our goal is to reach an exit within 5–7 years. Initially, we own around 5–10% of the companies, but over time we aim to increase our ownership to around 25–30%.
Because we look for companies where no one else is looking, we also find companies that no one else knows about — often companies providing industrial solutions to large customers with strong payment capacity. It often happens that we get to invest where our knowledge is needed more than our capital, as these companies already generate revenue from customers.
What companies are currently in your portfolio, and which holdings stand out the most going forward?
We currently have eleven holdings in our portfolio, which we divide into three sub-portfolios:
- Phase 2 companies: Unlisted companies that have come further in their growth journey, with clear scalable revenues and high growth — there are five such companies today.
- Phase 1 companies: Unlisted companies with great potential but that have not yet achieved scalable revenues — four companies.
- Listed companies — two companies.
The Phase 2 companies are the ones that stand out the most and are also our main focus. We aim to increase both engagement and ownership when opportunities arise. The Phase 2 companies have achieved an average annual revenue growth of over 50% during the past three years. Three of them are cash-flow positive, and the others are well on their way. The five companies are Arctic Space Technologies (ground stations for satellite communications), Arkimera Robotics (self-learning algorithm for accounting data), Noda Intelligent Systems (energy efficiency through AI), PubQ (digitization of restaurants), and RockSigma (monitoring and analytics algorithms for mining). Among the Phase 1 companies, I would like to highlight AI Medical, which recently received CE marking for its AI-based skin cancer diagnostic solution and now has its first customers in place — there is significant potential here.
Potential merger with portfolio company Arctic Space Technologies. Tell us about the company.
Arctic Space operates a so-called Ground Station Infrastructure as a Service — a data center-based infrastructure for satellite operators. They offer services in satellite communications, ranging from software development and data analysis to installation and operation of ground stations. The business is based on multi-year operations and service contracts that generate stable and recurring revenues. By offering cost-effective ground station services based on modern storage architecture, they enable fast, robust, and flexible satellite data downlink — for both civilian and defense applications.
The company has an impressive customer base with international players such as OneWeb, the European Space Agency, Airbus Defence and Space, Viasat, and Bradford Space. They operate in the rapidly growing “ground segment” market, driven by the increasing number of satellites being launched, growing data volumes, and expanding global space budgets. Arctic Space has been profitable since inception and is showing strong growth. Recently, they were also named winner of DI Gasell North.
The company currently operates its own ground station in Piteå and plans further expansions. The growth strategy involves building out the network of ground stations, deepening collaborations with satellite operators and cloud service providers, and strengthening its presence within the defense industry. The goal is to take a leading position in the growing New Space economy as well as the defense industry and meet the increasing demand for advanced solutions in security and defense.
Potential merger continued. What would the reverse acquisition mean for shareholders and for both CapSek’s and Arctic Space’s future path? What would the structure of the “new company” look like?
We have entered into a letter of intent for a merger, where CapSek would acquire all shares in Arctic Space in exchange for newly issued CapSek shares. After completion, Arctic Space’s shareholders are expected to own a majority of CapSek’s shares — meaning the transaction would be a reverse acquisition and, indirectly, a listing of Arctic Space. The idea is that the investment portfolio would then be placed in a separate subsidiary, creating flexibility for both investments and divestments. Arctic Space would become a rare European space tech/defense case for investors, and a listed structure would give Arctic Space access to the capital markets for future growth and acquisitions. CapSek contributes with listing structure, M&A experience, and financial expertise.
Potential merger continued. What needs to happen for the merger with Arctic Space to go through, and what happens if it doesn’t?
I want to emphasize that we are early in the process, and several key milestones remain — primarily that both parties complete their due diligence reviews and agree on the exact terms, including the valuation of each company. This valuation forms the basis for the share exchange ratio in the transaction. The idea is that the valuation will be based on an EBITDA multiple for Arctic Space and CapSek’s net asset value, adjusted for an agreed discount.
Our full focus is now on the Arctic Space deal — it is clearly our main track. But even if it does not go through, we remain strong. Several of our portfolio companies have made significant progress in their development and entered the next phase of their growth journeys. Many are growing rapidly, some already show solid profitability, and some have reached a level where they are becoming interesting targets for industrial buyers. Looking ahead, we also see opportunities for other structural transactions that could make CapSek larger and more profitable — such as a merger with an established software company with stable cash flows, or joining forces with other investment companies or acquiring existing portfolios.
The rights issue starting next week with the subscription period October 21 – November 4. How will the proceeds be used, and which key milestones are you aiming to finance?
The majority of the capital raised through the rights issue will be used to ensure financial flexibility to carry out a structural transaction. In addition to a potential transaction, we want to use the proceeds to further develop our existing portfolio and make a few carefully selected new investments. Several of the Phase 2 companies are growing rapidly and have clear plans to take the next step — but that, of course, requires access to more capital. We see an opportunity for CapSek to support this, both by providing additional capital and by increasing our ownership stakes in the most promising companies. This way, we help accelerate the portfolio companies’ growth — while strengthening CapSek’s long-term value.
Triggers. What can shareholders look forward to in the medium to long term?
Successfully completing the ongoing rights issue is important, and we already have a good start — guarantee and subscription commitments currently amount to approximately 66.5% of the issue. This gives us good conditions to execute a structural transaction, preferably the Arctic Space deal or other potential transactions to build a stronger and more profitable platform more quickly.
A completed transaction with Arctic Space would give shareholders exposure to the fast-growing Space & Defense industry, and I believe Arctic Space has strong potential to take a clear position in that market.
Regardless of whether the transaction is completed or not, there is great potential within our existing portfolio, and portfolio companies will eventually be acquired by industrial buyers — which is when the true value for CapSek’s shareholders will be realized. In addition, we have identified several new potential investments, mainly in the North, which I believe can bring exciting additions to the portfolio.
We thank Henrik Jerner for the interview and wish Northern CapSek success with their rights issue.
Click here to read more and subscribe to the company’s ongoing rights issue.
Disclaimer:
This interview was conducted on behalf of the company. Impala Nordic or people behind Impala Nordic acts as a guarantor in the ongoing rights issue at the time of the interview. // Detta är en intervju som har gjorts på uppdrag av bolaget. Impala Nordic eller personer bakom Impala Nordic agerar garant i den pågående företrädesemissionen vid upprättandet av intervjun.
