SRV Infra deal completed

Translation: Original published in Finnish on 01/02/2026 at 08:04 am EET

Kreate and SRV announced on New Year's Eve that they had completed the SRV Infra Oy transaction. The completion of the transaction by the end of 2025 was expected, as the competition authority had already approved it in late November. The acquired company will be consolidated into Kreate as of January 1, 2026. The news has no impact on our estimates, as we already included the acquisition for both companies in October when the deal was announced.

Transaction completed as planned

SRV and Kreate announced that the acquisition of SRV Infra Oy was completed on December 31, 2025, with an enterprise value of around 30 MEUR as previously announced. SRV Infra’s revenue in 2024 was 52 MEUR, and its EBIT was 2.6 MEUR. SRV Infra's business will be reported as part of Kreate Group's Finnish structural engineering business as of January 1, 2026. SRV will record a sales gain of over 20 MEUR from the transaction.  The transaction has no impact on either company’s guidance for 2025. 

Measured by 2024 earnings, the purchase price is neutral (EV/EBIT 11.5x) and in line with the valuation level we accept for the sector (EV/EBIT 10-12x). However, we believe the multiple will decrease for 2025 due to SRV Infra's improved margin accumulation last year.

The transaction seems logical for both the seller and the buyer

For Kreate, the acquisition expands the company's offering to underground rock engineering, which is a new area for the company in Finland. The acquisition also strengthens the company's position in foundation and special foundation construction. The long-term framework agreement with SRV, concluded in connection with the transaction, also provides stability and visibility for the coming years, reducing the risks of the acquisition. In addition, the acquired business is remarkably profitable and supports Kreate's profitable growth in our estimates for 2026.

With the transaction, SRV strengthens its balance sheet and frees up capital to enable its targeted project portfolio structure. The company's strategy focuses on increasing self-developed and -based housing and commercial construction, as well as strengthening building construction contracting. However, the transaction separates a unit whose earnings performance has been good in recent years from the Group. In our view, the transaction reduces the share's risk level, considering the convertible bond maturing next summer.

Due to the limited overlap between the businesses, we expected the transaction to close as planned at the end of 2025. We therefore included the impact of the acquisition in our estimates already in October (report available here), and the news does not affect our estimates for either company.