Last year marked a period of significant success and international recognition for the Estonian technology company Nortal. Despite economic downturns, the company’s revenue grew to €224 million, of which €196 million came from exports. Ats Albre, the CEO of Nortal Estonia and newly awarded Exporter of the Year at the Enterprise Awards, explains the company’s formula for success and its vision for the future.

“The fact that we have been able to grow in a challenging economic environment is a great credit to our team,” says Albre. According to him, Nortal’s multi-layered growth strategy is that while part of the growth has come through acquisitions, a large share of the success has been achieved through organic expansion.

In 2023, Nortal acquired the international software developer Questers, which was integrated into its subsidiary Pwrteams, and the UK-based cybersecurity consulting firm 3DOT Solutions, which collaborates with the UK military and intelligence services. “Integrating these companies has given us a strong advantage in cybersecurity and development capabilities, boosting our performance in global markets,” Albre explains.

Additionally, Nortal has expanded into export markets, entering the UK, Canadian, Saudi Arabian, and Austrian markets. They have also begun establishing a new development centre in Mexico and have expanded into Bulgaria through acquisition.

“Nortal is now a global exporter and a trailblazer for other ambitious Estonian companies, even in the most distant and complex foreign markets. Nortal stands out for its courage, speed, and smart approach, consistently expanding geographically and by investing boldly in new fields critical now and in the future, from artificial intelligence and cybersecurity to the defence industry.”
Eva-Kristiina Ponomarjov, Head of Export Division, Enterprise Estonia

According to Albre, the focus over the next few years will remain on growth in current markets. “At the same time, we’re exploring the opportunity to expand our network of development centres to better serve our clients in North America, Europe, and the Gulf countries,” he adds.

Nortal is focusing on four growing sectors

Albre identifies three key factors that have recently driven the company’s success: constant enhancement of services, adaptability to a changing economic environment, and the acquisition of strategic companies that complement Nortal’s value offering.

“Our goal is to keep services relevant and provide solutions that create value for our clients. For example, we’ve recently concentrated on artificial intelligence, cybersecurity, and defence sectors, which are becoming increasingly important for our client base,” explains Albre.

In 2025, the company plans to increase its investment in several areas where it foresees growing demand. “Next year, we’ll focus on cybersecurity, artificial intelligence, defence, and e-health, which are globally in high demand,” says Albre. Focusing on the defence sector is a significant step forward for the company. Nortal is known for its digital state solutions, which it has successfully exported to many countries, from Nigeria to Canada.

Over the past year, Nortal has made significant progress in exporting its e-government services to Western countries, where it was previously challenging to demonstrate the applicability of the Estonian digital state model. “Nortal has signed several important agreements with major Western countries and can now offer its e-government solutions to a broader audience than ever before. The biggest breakthrough has been in these Western countries, where the Estonian experience of building a digital state is being taken seriously. For example, we helped Germany, a country with 84 million residents, develop and implement an e-invoicing standard, which advanced them from a paper-based system to a data-driven economy,” he explains.

Currently, Nortal’s digital state solutions are also attracting significant interest in the UK and Canada, where Nortal is engaged in various projects.

Avoiding the hype trap

What will determine Nortal’s success next year? Albre believes it depends primarily on the speed of market recovery and investment opportunities. “Our success is tied to our clients’ success,” he says.

With technological possibilities evolving rapidly, the company needs to stay informed about the latest developments and guide clients in making choices that bring the most value to their business. “We want to help clients avoid the so-called ‘hype trap’ by offering them solutions that genuinely provide benefits. This means there is more pressure than ever to keep up with constantly changing opportunities, which is why we invest heavily in developing our people,” Albre adds.

“The title of Exporter of the Year is a significant recognition of the work of our people, who continue to contribute enthusiastically to ensure that an Estonian-headquartered company can increasingly play in the international premier league — and win there as well.”
Ats Albre, the CEO of Nortal Estonia

Choosing the right companies and partners is also essential for Nortal. “Acquiring and integrating new companies is key to enhancing our international impact and developing services we can offer to an even broader customer base,” says Albre.

Speaking about domestic developments in Estonia, Albre believes that while Estonia is globally known as a digital state, where 99% of services are online, the focus could now be on simplifying state services.

“Our goal could be less complexity and therefore fewer services. And what is offered should be as automated and citizen-centric as possible,” Albre suggests. He emphasises that the number of services is less important than their simplicity and user-friendliness.

Exporter of the Year 2024 is a significant company employee recognition. “Nearly half of Nortal’s global business involves the digitalisation of states, making us the largest exporter of Estonian digital state expertise and solutions. This means our international team, whether in North America or the Middle East, works daily to bring the success of the Estonian digital state to the global market. This title is a significant acknowledgement of our people’s work, who continue to contribute enthusiastically to ensure that an Estonian-headquartered company can increasingly play in the international premier league — and win there as well,” concludes Ats Albre, CEO of Nortal.

GOOD TO KNOW

Nortal AS
Founded: 1994
Employees: 2,073 (2023); 1,677 (2022)
Revenue: €224 million (2023); €196.5 million (2022)
Profit: €28.6 million (2023); €31.7 million (2022)
Markets: Estonia, Lithuania, Finland, Serbia, Oman, Saudi Arabia, Egypt, USA, Canada, Botswana, Germany, Luxembourg, Poland, Ukraine, UK, UAE, Austria, Bulgaria, Mexico
www.nortal.com

HIGHLIGHTS OF 2023 FOR NORTAL
– Launched AI-based product Nortal Tark, which helps clients utilise the capabilities of large language models.
– Acquired and integrated Questers into Pwrteams.
– Established a regional headquarters in Riyadh for the Middle East.
– Set up a development centre for Latin America in Mexico.
– Contributed to building one of the world’s most ambitious cognitive cities in the Middle East.
– Supported Saudi Arabia’s local Statistics Office in successfully publishing the 2022 census results.
– Enhanced data and tax information analysis solutions for the Omani tax authority, developing a new business platform to create the world’s best business ecosystem.
– Created an AI-based global platform for a leading US solar energy solutions provider.
– Continued digitisation of administrative services in Germany.
– Strengthened its presence in Finland’s oil, gas, and energy sectors.
– Developed Estonia’s first national infrastructure for data transfer between the gene bank, medical laboratories, medical devices, and health information systems.

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