Bluefront Equity acquires aquaculture software firm FiiZK Digital

Norwegian seafood investment firm Bluefront Equity has acquired the FiiZK group's subsidiary, FiiZK Digital, the companies have announced.

Bluefront Equity’s second fund, Bluefront Capital II, is to acquire FiiZK Digital for an unspecified sum, after which the company will undergo a rebranding process. The transaction marks the first purchase by the USD 50 million fund, which was launched in April this year.

The transaction will see Bluefront owning approximately 90% of FiiZK Digital, with the remaining shares held by original founders of the company Torbjørn Skjetne and Magne Johnsen, together with Olav Jamtøy, the new chairman, Bluefront Equity indicated in a press release.

FiiZK Digital provides digital solutions for optimizing fish farming production planning, which are widely used within the Norwegian salmon aquaculture industry.

“More than 40 percent of the salmon that is produced in Norway is supported by FiiZK Digital’s solutions," said Bluefront Equity partner Kjetil Haga in a press release, calling this a "fantastic starting point to further develop the company".

"We will streamline the business and contribute with new equity that will enable the company to develop even better and more holistic solutions that will make fish farmers’ operations more efficient, sustainable and profitable,” he added.

“Optimizing production through data-driven decision-making enables fish farmers to enhance sustainable food systems by improving efficiency, reducing mortality, and promoting better fish welfare,” added Bluefront partner Simen Landmark.

Bluefront Equity said that the investment of capital will improve FiiZK Digital’s financial health and stability, and provide a basis for future expansion both in Norway and internationally.

This transaction is part of FiiZK's strategic move to "streamline" its operations and focus on innovative fish farming methods, specifically closed and semi-closed cages, the company said.

Last August, Bewi Invest and Nekkar jointly became the largest shareholders of FiiZK, holding 41% and 39% respectively. Shortly afterewards, in September 2023, five out of the eight companies forming part of the FiiZK group were declared bankrupt.

Since then, the new owners have successfully restructured the company, and say that divesting FiiZK Digital is another step towards a more focused business.

“FiiZK wants to maintain our leading position in what we do, which means that we have to focus both our efforts and our resources,” said Jan Erik Kvingedal, Managing Director of FiiZK, in a press release announcing the sale.

“The sale of FiiZK Digital strengthens FiiZK’s balance sheet and frees up resources to develop the company’s core business,” added Ole Falk Hansen, Chairman of FiiZK and CEO of Nekkar ASA.

Going forward, FiiZK says it intends to focus on the sale of closed and semi-closed fish cages, along with the necessary software, maintenance, and services.

To date, the company has delivered over 20 cages and completed more than 70 production cycles, showing strong fish growth with no issues of lice or escapes, the company said.

FiiZK will also continue its development of technical textiles like lice skirts and treatment tarps, and will draw on Nekkar’s expertise in engineering and technology to further develop its aquaculture systems, the company said.