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Arc Technology and Innofactor combine their HRM business know-how – HR management gets digitized

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22.12.2015 00:00

Finnish Arc Technology, which is focused on HR systems, is buying Innofactor Plc’s HRM (Human Resources Management) business. For the customers, the union of two strong HRM players’ resources means stronger service offering and innovation capacity. With the deal that takes effect at the turn of the year, Arc Technology is looking for an even stronger position in the Finnish market.

The renewing company still stands out because of its solution-centric approach, and it promises to deliver its customers the most suitable HR system also in the future. Arc Technology’s Oracle know-how and Innofactor’s leading Microsoft know-how in Finland complement each other. The deal makes Innofactor a minority owner in Arc Technology. 7 employees and 25 customer relationships will be transferred to the company, which is aiming at the Nordic markets in the next stage.

- Digitalization of human resource management enables new kinds of reporting and mobile services and fulfills customers’ needs. Combining our businesses under the same roof supports both Arc Technology’s and Innofactor’s strategies, which are, for these parts, very similar, just like the companies’ business models. By combining our know-how, we can serve our customers more comprehensively and invest even more in the product development, say Arc Technology’s founder and CEO Kimmo Koivu and Innofactor’s founder and CEO Sami Ensio.

- However, all these new and interesting aspects we can only achieve with knowledgeable personnel, and I want to extend a warm welcome to the new people joining us, says Kimmo Koivu.

The digital revolution affects human resources just as much as any other management areas in a company or organization. Cloud services make managing the personnel more flexible, user-friendly and customizable. At the same time, they support mobile work. On the other hand, the expectations of customers used to continuously updating technology are increasing all the time.

Digitalization of human resources management renews the traditional operating models.

Arc Technology’s CEO Kimmo Koivu promises that the dynamic approach focused on entrepreneurship will continue. The company is seeking for profitable growth primarily by providing benefits to its customers.

- We will make even stronger investments in new kinds of analytics and, for example, visual reporting systems, even game approach, and expanding our solution areas. The fairly traditional IT environment of HRM is renewing. Our customers are also interested in outsourcing technology and technical services in an increasing scale. Our updating system know-how enables a stronger presence for our services as a part of the customers’ everyday information management environment. Also in HRM, Everything-as-a-Service or XaaS is the term of the day, says Kimmo Koivu.

Aiming at the Nordic Countries

Combining know-how offers Arc Technology new potential for growth. A member of the Arc Technology’s Board of Directors, Juho Lipsanen, confirms that the acquisition is a natural step towards HRM digitalization in the Nordic Countries, which matches the company’s vision of growing by innovation and acquisitions.

At the same time, the Innofactor COO Anthony Gyursanszky (previously a Board Member in 2007-2010) will return to the Arc Technology Board of Directors. The Board is expected to work efficiently without any migration periods. Gyursanszky will bring to the Board more experience, for example, as regards globalization.

Arc Technology’s current customers include ABB, Atria, Castrén & Snellman, Huhtamäki, and Sinebrychoff. Innofactor’s HRM customers include Eteva, Ponsse, and Savon Voima.

Additional information

Kimmo Koivu, CEO, Arc Technology Ltd, tel. +358 40 900 0070,,

Sami Ensio, CEO, Innofactor Plc, tel. +358 50 584 2029,,


Arc Technology
Arc Technology is a Finnish software company founded in 1989. In 2014, the company separated its LATO Strategy Tool in its own company while Arc Technology continues to focus on HRM systems. From now on, Arc Technology will have about 30 employees, 100 customers, and a net sales of about EUR 3 million. Arc Technology will operate in Espoo, Kuopio and Tampere.

Innofactor is one of the leading Nordic IT solution providers focused on Microsoft platforms. Innofactor delivers business critical solutions and maintenance services as a system integrator and develops its own software products and services. Innofactor’s own product development is focused on Microsoft’s Windows Azure-based cloud solutions. Innofactor's customers include over 1,000 private and public sector organizations in Finland, Denmark, Sweden and elsewhere in Europe. The company has over 400 motivated and skilled employees in several locations in Finland, Denmark and Sweden. From 2010 to 2014, Innofactor's annual net sales growth has been 45% on average. Microsoft has named Innofactor Plc as the Finnish Partner of the Year in 2015. Innofactor was also selected into the Microsoft’s international finals in two categories. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ OMX Helsinki Oy.