eQ Group to Acquire Genesta Property Nordic AB in Deal Worth Up to €15.5 Million

HELSINKI — eQ Group, the Finnish asset management and corporate finance company whose parent eQ Plc is listed on Nasdaq Helsinki, signed a share purchase agreement on Oct. 23 to acquire the entire share capital of Genesta Property Nordic AB, a company specializing in Nordic real estate asset management. The maximum debt-free transaction value before purchase price adjustments is €15.5 million.

The company said the transaction is expected to strengthen eQ's international growth platform and expand its real estate asset management business into a Nordic-wide operation. Closing is expected no later than the first quarter of 2027.

Deal Structure and Terms of the eQ Group Acquisition

The €15.5 million figure comprises a base purchase price of €11.5 million and a conditional earn-out of up to €4.0 million. Before purchase price adjustments, both components will be paid 50% in cash and 50% in new shares in eQ Plc.

The base purchase price includes a cash component of about €5.75 million and 680,471 new eQ Plc shares, with a subscription price of €8.45 per share, to be paid as a contribution in kind at closing. The subscription price is based on the 30-trading-day volume-weighted average price of the eQ Plc share before the agreement was signed. The cash consideration will be adjusted after closing based on net debt and net working capital, while the number of new shares is fixed and not subject to adjustment.

The earn-out depends on the achievement of agreed fundraising targets within two years after closing and will be paid in full if its conditions are met. Its share component will be priced using the 30-trading-day volume-weighted average price, calculated backward from the date on which the obligation to pay the earn-out is finally confirmed. The issuance of earn-out shares will be decided separately.

The cash consideration and the cash portion of any earn-out will be financed from eQ's cash reserves and, if necessary, with debt financing. Closing is subject to regulatory approvals and customary conditions precedent. The company said the transaction is not expected to affect its 2026 outlook.

Genesta's Sellers Become eQ Shareholders

Upon closing, Genesta's current shareholders Caprock Ventures AB, Philip Björk Invest II AB, Pinetwig AB and Ted Söderlund Invest AB would become eQ shareholders through the share consideration. The sellers have undertaken to comply with transfer restrictions applying to the shares.

Genesta's partners David C. Neil, Philip Björk, Daniel Tallqvist and Ted Söderlund are committed to continuing the long-term development of the business as part of eQ.

About Genesta Property Nordic AB

Founded in 2003, Genesta is a Nordic real estate investment manager that manages three real estate funds and approximately €1 billion in assets. It has 30 employees and offices in Stockholm, Helsinki, Oslo, Copenhagen and Luxembourg. The net sales of its asset management business were approximately €9.6 million in 2025, up from €9.1 million in 2024, and operating profit was approximately €2.7 million, compared with €2.5 million in 2024.

Genesta has more than 20 institutional investor clients, primarily European pension investors, along with long-standing investor relationships and an international investor network. If the deal closes, eQ would gain local operations in Sweden, Norway and Denmark and a Luxembourg-based fund management company authorized as an alternative investment fund manager (AIFM).

The maximum transaction value equals roughly 1.6% of Genesta's assets under management and about 5.7 times its 2025 operating profit. Those ratios are indicative rather than a conventional valuation multiple, because eQ is acquiring a fee-generating management platform rather than the underlying real estate.

Strategic Rationale and Executive Comments

The acquisition supports eQ's Strategy 2030, titled "Return to Strong Growth," which targets a return to strong growth, international expansion and a doubling of operating profit by the end of 2030 compared with the 2025 level. eQ said its strategic targets for 2030 remain unchanged.

"In line with eQ's strategy, we are pursuing growth through, among other things, international institutional client relationships, particularly in private equity and real estate investing, and by strengthening eQ's position as a leading real estate asset manager. The acquisition of Genesta is the first step in building an international private markets growth platform and expanding our real estate asset management business into a Nordic-wide operation," said Jouko Pölönen, CEO of eQ Plc.

David C. Neil, CEO of Genesta, said: "eQ's strategy, culture and long-term approach make it a strong owner for Genesta. Together, we can strengthen our position in asset management and grow the business internationally. Joining forces with eQ will provide our clients with a significantly broader service offering and create development opportunities for our personnel as part of a larger organisation."

Pertti Vanhanen, director of international business at eQ, is listed among the contacts for further information on the transaction.

Context: eQ's Third-Quarter Results

eQ released its interim report for the third quarter of 2026 on the same day. For January through September, group net revenue rose 4% to €44.5 million, while operating profit fell 3% to €18.8 million. Earnings per share were €0.36, compared with €0.37 a year earlier.

In the Asset Management segment, net revenue declined 1% to €42.3 million and operating profit fell 10% to €21.3 million. Management fees decreased 2% to €39.0 million, while performance fees rose 15% to €3.8 million. Cash flow from private equity performance fees totaled €6.8 million. Assets under management reached €13.9 billion, up from €13.8 billion at the end of 2025. Adding Genesta's roughly €1 billion would equal about 7% of that total.

During the period, eQ raised €312 million for private equity and venture capital funds and returned €275 million to investors. In real estate, the eQ Social Infrastructure fund became the first Nordic real estate fund to receive a Moody's Baa3 rating with a stable outlook, and the eQ Social Infrastructure and eQ Commercial Properties funds completed refinancing totaling €915 million on more favorable terms than before.

eQ said its real estate fund returns were negatively affected by changes in property values during the period. Real estate yield requirements have not yet fallen, although trading activity has increased from the previous year, and most domestic open-ended real estate funds have had to postpone redemption payments. In July, eQ paid out part of the previously deferred redemptions from both the eQ Social Infrastructure and eQ Commercial Properties funds. The company expects real estate fund management fees to decrease in 2026 compared with the previous year.

Outlook

eQ said the real estate transaction market in Finland has become more active, and it expects market activity to increase and yield requirements to fall as more foreign capital flows into the country. The Genesta transaction is structured as an acquisition of an asset management company, not a property portfolio, and does not involve individual buildings.

eQ is hosting a briefing for analysts, investors and media on Oct. 23 at 11 a.m. at its Helsinki offices at Aleksanterinkatu 19, with webcast participation available by registration.

Sources

• https://www.globenewswire.com/news-release/2026/10/23/3387036/0/en/inside-information-eq-plc-to-acquire-genesta-strengthening-its-international-growth-platform-and-nordic-real-estate-asset-management-business.html
• https://www.globenewswire.com/news-release/2026/10/23/3387036/0/fi/sis%C3%A4piiritieto-eq-oyj-ostaa-genestan-ja-vahvistaa-kansainv%C3%A4list%C3%A4-kasvualustaansa-sek%C3%A4-pohjoismaista-kiinteist%C3%B6varainhoitoaan.html
• https://www.globenewswire.com/news-release/2026/10/23/3387040/0/en/eq-plc-s-interim-report-q3-2026-private-equity-is-performing-strongly-implementation-of-the-strategy-is-progressing.html
• https://www.globenewswire.com/news-release/2026/10/23/3387040/0/fi/eq-oyj-n-osavuosikatsaus-q3-2026-private-equityn-kehitys-vahvaa-strategian-toimeenpano-etenee.html