xxllnc strengthens product portfolio with compliance solution provider DataMask

Main Capital Partners

xxllnc, a leading GovTech software provider in the Netherlands, further expands its market position with the addition of document anonymization player, DataMask.

xxllnc, a leading GovTech software provider in the Netherlands, further expands its market position with the addition of document anonymization player, DataMask. With the acquisition of the software company DataMask, xxllnc will be able to further expand its current portfolio of applications and support for local and regional governments. With this, customers can be served even better around monitoring their privacy. The acquisition of DataMask is the twelfth acquisition for xxllnc since its partnership with strategic software investor Main Capital Partners in 2020.

DataMask is a relatively young company whose software solution anonymizes documents. By bringing this software solution to xxllnc, governments can be offered a total solution for working more efficiently, transparently and securely with privacy-sensitive data.

Using DataMask’s application, organizations themselves are able to anonymize personal data efficiently. In addition to its experience and software-based solution for automating the anonymization process, DataMask also has the necessary legal expertise to provide organizations with a broad range of legal advice on anonymization.

The three founders of DataMask remain active in the organization and the broader xxllnc group. xxllnc is a portfolio company of Main Capital Partners, a strategic investor in the software industry focused on accelerating growth and creating value. Earlier this year, Processfive was added to xxllnc, a specialist in providing software and services in the tax domain.

Smart Use of Artificial Intelligence

The addition of DataMask fits within xxllnc’s product strategy of using applications intelligently, for instance by deploying more artificial intelligence. DataMask’s application uses Artificial Intelligence, such as Natural Language Processing and object recognition in imagery, and is configurable to your own preferences. By setting certain rules or templates, commonly used documents can be anonymized in a uniform way.

Addition to xxllnc

With the acquisition of DataMask, xxllnc broadens its applications, capacity and quality in document management and privacy. DataMask’s technology will be integrated into xxllnc’ portfolio within the Productivity team. As DataMask’s and xxllnc’ applications integrate seamlessly, customers benefit from better solutions and support. The integrated approach enables municipalities and regional governments to set up their ICT facilities in a more simplified, flexible and smarter manner.

xxllnc, formerly known as Exxellence Groep, started in 2001 as a spin-off of the University of Twente and grew from Twente into a leading national software supplier with hundreds of employees and a range of total solutions for the Dutch (semi-)government. Customers of xxllnc include Gemeente Den Haag, Gemeente Utrecht, UWV and Gemeente Leiden. A total of twelve software companies have been added since the partnership with Main Capital Partners in 2020.

Michel Veenhuis, CEO of xxllnc, comments: “We have been working with the team at DataMask for several years now and are very excited about the intensified collaboration that will allow us to further broaden and integrate our product offering and strengthen our content.”

Charly Zwemstra, Managing Partner & Chief Investment Officer at Main Capital Partners, concludes: “DataMask is a valuable addition to xxllnc. The combination between xxllnc and DataMask is yet another step for the company to strengthen its position as a complete and innovative player.”

The combination between xxllnc and DataMask is yet another step for the company to strengthen its position as a complete and innovative player.

– Charly Zwemstra, Managing Partner & Chief Investment Officer at Main Capital Partners

About

DataMask

DataMask, founded in 2019, is a specialist in providing software that supports governments in anonymizing documents to comply with laws and regulations around privacy, compliance and transparency. In addition to the software, DataMask also provides services that support clients in the process of anonymizing documents. DataMask is based in Capelle a/d IJssel.

xxllnc

xxllnc delivers smart scalable apps for the (semi-)government. Applications that support case-oriented working, data integration, taxation, social affairs and spatial planning. To take GovTech to the next level, xxllnc builds an ecosystem where everything works seamlessly together. The perfect combination of applications from the cloud and support from subject matter professionals. Meanwhile, the team consisting of hundreds of specialists is based in Hengelo, Amsterdam, Veenendaal and Eindhoven.

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BPEA EQT Mid-Market Growth to acquire a majority stake in Indium Software, a fast-growing digital engineering company in India

eqt
  • Indium enables enterprises on their digital transformation journey through a comprehensive suite of services, including Product Engineering, Data Analytics, ML and AI, Low-code No-code, Digital Assurance, and Gaming Tech
  • Indium’s blue-chip customer base features multiple Fortune 500 enterprises across various sectors, with a focus on Technology, BFSI and Healthcare industries
  • Drawing on its extensive track record in the global Tech Services sector, EQT will support Indium’s management team in strengthening its go-to-market strategy while continuing to build on next-gen offerings across Generative AI and Advanced Analytics

EQT is pleased to announce that the BPEA EQT Mid-Market Growth Fund (“BPEA EQT Mid-Market Growth”) has agreed to acquire a majority stake in Indium Software (the “Company”) from existing shareholders. The Company’s Co-Founder, Ram Sukumar, will continue leading the firm as CEO.

Headquartered in Chennai, Indium is a fast-growing, digital engineering provider, offering cutting-edge technology solutions to enterprise customers and born-digital companies. Indium was co-founded in 1999 by Ram Sukumar and Vijay Balaji, and today boasts of a team of about 3,000 employees. Indium has grown at a CAGR of around 50 percent over the last three years.

BPEA EQT Mid-Market Growth will support Indium in its next phase of growth, drawing on EQT’s global experience in Tech Services with about USD 11 bn invested in the sector in Asia, in-house digitalization capabilities, and global network of industry experts.

Hari Gopalakrishnan, Partner and Co-Head of BPEA EQT India, said, “We are excited to partner with CEO Ram Sukumar and Indium’s stellar management team, as the company enters its next phase of evolution. Indium has highly impressive digital capabilities and a strong client roster of global blue-chip enterprises. We are confident of drawing on EQT’s extensive value creation playbook in Tech Services and supporting the company on its strong growth momentum”.

Ram Sukumar, Co-founder and CEO of Indium, said, “Indium has been built on a culture of client centricity, trust and high-performance. Over the years, we have embraced multiple technology shifts, and today, have become a trusted partner to several enterprises accelerating on their digital and AI journeys. We are truly excited about welcoming EQT as our partner, and we hope to leverage their global footprint to scale our business.”

The transaction is expected to close in Q1 2024

BPEA EQT Mid-Market Growth was advised by JSA, Deloitte, and PwC. Avendus Capital served as exclusive financial advisor and SAM & Co. served as legal counsel to Indium and its shareholders.

Contact
EQT Press Office, press@eqtpartners.com

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of BPEA EQT Mid-Market Growth will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

About EQT
EQT is a purpose-driven global investment organization with EUR 232 billion in total assets under management (EUR 128 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, X, YouTube and Instagram

About Indium Software
Indium Software is a fast-growing digital engineering company, focused on building modern solutions across applications, data, and gaming for its clients. With deep expertise in next-generation offerings combining data and applications, Indium offers a wide range of services including Product Engineering, Low-Code development, Data Engineering, AI/ML, Digital Assurance, and end-to-end Gaming Tech.

With about 3,000 associates globally, Indium has built deep relationships with Fortune 500, Global 2000, as well as born-digital companies across industries such as BFSI, Healthcare, Manufacturing, Retail, Digital Native, and Technology companies in North America, India, and APAC.

More info: www.indiumsoftware.com

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Cetera Announces Close of Equity Reinvestment from Genstar Capital

Cetera Continues with Current Leadership, Community, Culture and Brand

Reinvestment Enables Ongoing Deployment of Capital To Support Wealth Hub Expansion Through Organic Growth, M&A and New Markets


San Diego, December 21, 2023—Cetera Financial Group, owned by Cetera Holdings (collectively, “Cetera”), the premier financial advisor Wealth Hub, announced today the close of the reinvestment by Genstar Capital (“Genstar”), a leading private equity firm focused on investments in targeted segments of the financial services, software, industrials, and healthcare industries. Originally announced in October 2023, the reinvestment transaction has closed following the receipt of regulatory approvals and the satisfaction of other closing conditions. 

“Genstar’s partnership has propelled growth for Cetera for several years, and we look forward to even bigger things to come in the next chapter together,” said Mike Durbin, CEO of Cetera Holdings. “This reinvestment provides fresh capital to empower our strategic plans and allows us to thoughtfully reinvest in the Cetera business to drive continued growth and success. We are grateful for this vote of confidence by Genstar and are more optimistic than ever headed into 2024.”

Since Genstar’s original investment in 2018, Cetera has grown dramatically, driven by organic growth, recruiting and strategic M&A, from approximately 7,000 advisors and 1,300 employees supporting $242 billion of assets under administration (“AUA”) to approximately 12,000 advisors and 2,800 employees supporting $475 billion of AUA today.  Cetera continues to be an essential partner for its independent advisor and financial institution clients, offering industry leading technology, award-winning solutions and innovative support to enable growth. Consistent with a philosophy of aligning incentives to shared outcomes, Cetera and Genstar have designed refreshed programs to encourage additional ownership by advisors and management.

Tony Salewski, Managing Partner of Genstar, said, “The first chapter of Genstar’s partnership with Cetera has been an exciting journey, and we thank the leadership team for tremendous growth and value creation. We are excited to re-underwrite Cetera as a new investment, led by our latest fund, Genstar XI.  This next chapter will see the further expansion of the business and the Wealth Hub strategy.”

About Cetera Financial Group®

Cetera Financial Group is the premier financial advisor Wealth Hub where financial advisors and institutions optimize their control and value creation. Breaking away from a commoditized and homogenous IBD model, Cetera offers financial professionals and institutions the latest solutions, support, and services to grow, scale, or transition with a merger, sale, investment, or succession plan. Cetera proudly serves independent financial advisors, tax professionals, licensed administrators, large enterprises, as well as institutions, such as banks and credit unions, providing an established and repeatable blueprint for scalable growth.

Home to more than 12,000 financial professionals and their teams, Cetera oversees approximately $475 billion in assets under administration and $186 billion in assets under management, as of December 20, 2023. In a recent advisor satisfaction survey of more than 21,000 reviews, Cetera’s Voice of Customer (VoC) program vigorously measures advisor experience and satisfaction 24/7. Currently, it’s ranked 4.8 out of 5 stars.

Visit www.cetera.com, and follow Cetera on LinkedInYouTubeTwitter and Facebook.

“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are FINRA/SIPC members. Located at: 655 W. Broadway, 11th Floor, San Diego, CA  92101.

Registered Representative offering securities and advisory services through Cetera Financial Specialists, member FINRA/SIPC. Cetera is under separate ownership from any other named entity.

About Genstar Capital

Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high-quality companies for over 30 years.  Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar XI, a $13.5 billion vehicle raised in April 2023, and all active funds, Genstar currently has approximately $49 billion of assets under management and targets investments focused on targeted segments of the financial services, software, industrials, and healthcare industries.

MEDIA INQUIRIES:

Cetera:
Ryan Hoffman
ryan.hoffman@cetera.com

Kris Pfeiffer
kpfeiffer@wearecsg.com

Genstar:
Chris Tofalli Public Relations,
Chris Tofalli
914-834-4334

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Oakley Capital announces partnership with Touring Capital

Oakley

Oakley Capital, the leading pan-European investment firm, is pleased to announce a partnership with Touring Capital, to invest in and grow a new generation of enterprise software companies globally.

The partnership brings together Touring’s extensive experience investing in growth tech and enterprise technology, with Oakley’s leading operational platform, deep network, and proven value creation expertise.

Investment Strategy

Oakley and Touring share a common investment approach, and will leverage their extensive networks to secure proprietary access to quality deals and partner with best-in-class founders and management teams. The partnership is deeply engaged as investors with a strong focus on catalysing growth to deliver successful investment outcomes.

Touring was founded in 2023, bringing together a diverse and highly technical team including Nagraj Kashyap, Samir Kumar and Priya Saiprasad.

Zoom

The team has previously worked together to build three global venture investing franchises, including Qualcomm and M12, Microsoft’s venture fund, where they built a strong track record as early backers of companies such as Zoom, Kahoot and Waze.

The team will be investing a dedicated pool of capital, targeting a strong pipeline of investment opportunities in proven next generation software businesses for the modern worker, powered by generative AI. Oakley and Touring will focus primarily on Series B and C venture opportunities, investing in proven businesses with strong growth prospects

Quote Peter Dubens

There is no doubt that generative AI represents the next generation platform shift, in the wake of the internet, smartphones and cloud computing. The investment opportunity will be significant, as will the impact on existing businesses. To capitalise on this opportunity and help our current portfolio companies navigate this paradigm shift, we have partnered with the exceptionally talented team at Touring. With a strong pipeline of investment opportunities across sectors we know well, we look forward to working with the team to back the next generation of leading tech companies.

Peter Dubens

Co-Founder and Managing Partner — Oakley Capital

Quote Nagraj Kashyap

Partnering with Oakley has enabled us to launch our investment strategy and take advantage of the significant market opportunity presented by generative AI. We share a common investment ethos and approach to investing in tech, and with Oakley’s leading operational platform, we are well positioned to continue our successful track record backing leading software businesses.

Nagraj Kashyap

Founding Partner — Touring Capital

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Inside information: CapMan Plc acquires Dasos Capital Oy, an asset management company focusing on sustainable timberland investment, and expands its activities into natural capital

Capman

CapMan Plc
Stock Exchange Release / Inside information
21 December 2023 7:35 p.m. EET

Inside information: CapMan Plc acquires Dasos Capital Oy, an asset management company focusing on sustainable timberland investment, and expands its activities into natural capital 

  • CapMan acquires Dasos Capital Oy, an asset management company focusing on sustainable timberland investments, through a share exchange and expands its activities into natural capital.
  • The acquisition supports CapMan’s vision of becoming the most responsible private asset company in the Nordics and significantly promotes CapMan’s strategic objective to increase assets under management to EUR 10 billion during the ongoing strategy period.
  • Following the acquisition, the share of real assets investment strategies of CapMan’s assets under management increases to 80 per cent.
  • The acquisition strengthens CapMan’s fee-based profitability significantly.
  • The debt free purchase price is EUR 35 million. In addition, CapMan has committed to paying an additional earn-out consideration of a maximum EUR 5 million based on incurred management fee turnover in 2025 and 2026.
  • The equity price for Dasos’ shares is paid in shares of CapMan by a directed share issue and a cash consideration.

CapMan Plc (“CapMan”) signed on 21 December 2023 an agreement on the acquisition of all the shares of Dasos Capital Oy (“Dasos”) from the company’s current shareholders.

Dasos is a leading timberland and natural capital investment asset manager in Europe and a significant player globally. Dasos focuses on managing sustainable timberland investments, natural sites and forest carbon sinks, as well as developing value in Europe and emerging markets. The investors in the funds managed by Dasos are domestic and foreign institutions, mainly pension and insurance companies. At present, Dasos manages seven funds, which have a total asset value of approximately EUR 1.4 billion and which manage 266,000 hectares of forest in eight countries. The carbon sequestration of Dasos’ managed forests amounted to over one million tCO2e in 2022. The Dasos team in Helsinki, Mikkeli and Switzerland will continue to manage the funds and implement the investment strategy. In 2022, Dasos Group’s adjusted turnover was EUR 4.5 million (EUR 3.4 million in 2021) and operating profit was EUR 2.2 million (EUR 1.7 million). Operating profit for 2023 is projected at approximately EUR 2.7 million. As of the end of 2022, Dasos balance sheet was EUR 5.8 million, of which equity amounted to EUR 4.4 million. Dasos has no interest-bearing debt. In 2023, Dasos has employed on average eight persons. Dasos does not consolidate its financial statements and the financial information presented here is not audited.

The acquisition has no impact on CapMan’s comparable result for the current year, and therefore has no impact on CapMan’s outlook for 2023 as described in the Interim Report published on 26 October 2023. The acquisition would have had a slight positive impact to the comparable earnings per share for 2023, should the acquisition had been completed in the beginning of 2023.

The acquisition promotes CapMan’s strategic objectives 

The acquisition is estimated to expand CapMan’s fee-generating assets under management by approximately EUR 630 million and increases the share of real assets investment strategies to approximately 80 per cent. The acquisition will expand CapMan’s activities into natural capital and timberland investments and will bring several opportunities to expand and develop Natural Capital as a new investment area through its offering in the form of other natural capital and impact products. In addition, the acquisition supports CapMan’s vision of becoming the most responsible private asset company in the Nordics.

Pia Kåll, CEO of CapMan: “I am truly excited about this opportunity to join forces with Olli Haltia and his team to accelerate natural capital and timberland investment strategies together. Dasos is a pioneer in its field. We are highly convinced of the operating model developed by the team and its ability to create a strong platform on which to build future growth. Dasos is an excellent fit with our strategy and diversifies the current Nordic investment strategies geared towards real assets. Sustainable natural capital is a globally growing asset class. By combining Dasos’ professional team and a good return history with CapMan’s experience in scaling products and internationalising the investor base, we are creating formidable conditions for rapid growth.”

Following the acquisition, Dasos will form the core of the new CapMan Natural Capital investment area, led by Dasos’ current CEO and senior partner Olli Haltia.

“We are inspired to join forces with such a well-established and prestigious private assets house as CapMan”, says Olli Haltia.  “Partnering with CapMan allows leveraging synergies between the companies and strengthening the focus on Dasos’ value creation and investment activity. Forests and all natural ecosystems are globally under pressure resulting from population growth and massively increased economic well-being. For the coming decades, we need to move on with investing into and re-building our natural capital. The demand for sustainable wood as well as for forest-based nature and carbon sequestration services is expected to increase substantially in the foreseeable future. Combining CapMan’s deeply rooted private asset experience with Dasos’ expertise will form an excellent instrument to address the widening investment opportunities in the context of forest-based natural capital.”

“Sustainable development is at the core of CapMan’s value proposition and our vision is to be the most responsible private asset company in the Nordics. Dasos helps us achieve our vision and promote sustainable value creation. Timberland investments are inherently carbon negative, and the certification of forests and enablement of the green transition through land leases for wind and solar power production are added value factors in the investment strategy,” Kåll continues.

Main terms and schedule of the acquisition 

The equity price paid at closing equals the enterprise value of EUR 35 million adjusted with net debt/cash at closing and certain customary post-closing adjustments (the “Purchase Price”). CapMan intends to pay the Purchase Price by a directed share issue to the current shareholders of Dasos (the “Share Issue”) and with a cash component, which amounts to a maximum of approximately 9 per cent of the Purchase Price. The subscription price for the shares issued in the Share Issue is according to the agreement negotiated between the parties determined by the 30-day volume weighted average share price of CapMan prior to the signing of the acquisition and is thus EUR 2.0938 per share. The total number of shares is estimated at 18.3 million and the theoretical maximum number of shares is approximately 20 million depending on the timing of the completion of the acquisition and post-closing adjustments depending on the amount of net debt and working capital. The Purchase Price is now anticipated to be approximately EUR 41.6 million at closing. The shares can be issued in several lots.

If CapMan’s dividend or other distribution of funds before the closing would exceed the level expected to be proposed by CapMan’s Board of Directors, as communicated on 25 October 2023, the subscription price and/or the number of consideration shares shall be adjusted in proportion. The cash consideration will be paid from CapMan’s current cash and bank assets, and no external financing will be used to finance the acquisition. In addition, CapMan has committed to paying an additional earn-out consideration of a maximum EUR 5 million based on management fee turnover incurred in 2025 and 2026, payable when the management fees of the funds managed by Dasos exceed certain limits. The additional consideration will be paid later in 2026 and 2027 in CapMan’s shares.

The completion of the acquisition is subject to, among others, CapMan’s Extraordinary General Meeting authorising the Board of Directors to resolve on the issuance of new shares. The notice of the Extraordinary General Meeting to be held in January 2024 to resolve on the authorisation of the Board of Directors will be published on or about 22 December 2023.  CapMan’s largest shareholder Silvertärnan Ab, Momea Invest Oy, Oy Inventiainvest Ab, Joakim Frimodig, members of the management team who own CapMan shares and Mikko Laakkonen, which in total own approximately 22.4 per cent of all the shares and votes in CapMan, have committed to vote in favour of said authorisation at the General Meeting. CapMan’s Board of Directors is expected to decide on the timing and terms of the Share Issue in connection with the closing of the acquisition based on the authorisation given by the General Meeting.

The completion of the acquisition is also conditional on the approvals by the Finnish Competition and Consumer Authority and the Finnish Financial Supervisory Authority as well as consents from certain investors of certain funds managed by Dasos. The acquisition is intended to be completed during the first half of 2024, following the completion of the conditions precedent.

Under the terms of the acquisition, the right to the carried interest income of existing funds under Dasos is not transferred to CapMan. The carried interest income from new funds to be established will be distributed between the investment team of Dasos and CapMan in accordance with the general principles for funds managed by CapMan.

The sellers that are actively participating in Dasos’ investment activities have committed to a 36-month transfer restriction starting from the closing of the acquisition of the shares received from CapMan as consideration in connection with the closing. The transfer restriction will be gradually lifted so that 90 per cent of these sellers’ shares will be subject to the transfer restriction at the time of the closing and the amount will reduce annually so that the remaining 70 per cent will be released after the third year. Shares used for paying the additional earn-out consideration are subject to a transfer restriction for a period of 12 months from their issuance. The sellers committed to the transfer restriction account for approximately 69.65% of the total purchase price.

Press conference for analysts and investors 

CapMan will hold a press conference for analysts, investors and the media, which can be followed via a live webcast at https://capman.videosync.fi/2023-12-22-webcast as of 11 a.m. EET on 22 December 2023. In connection with the event, it is possible to ask questions through the chat function on the webcast website. The language of the event is English. The webcast presentation will be available on CapMan’s website at https://capman.com/shareholders/financial-reports/ after the event.

 

CAPMAN PLC
Board of Directors

DISTRIBUTION
Nasdaq Helsinki
Principal media
www.capman.com

Contact details:
Pia Kåll, CEO, CapMan Oyj, tel. +358 40 766 4446

 

About CapMan 
CapMan is a leading Nordic private asset expert with an active approach to value creation. As one of the private equity pioneers in the Nordics, it has built value in unlisted businesses, real estate, and infrastructure for over three decades. With approx. EUR 5 billion in assets under its management, its objective is to provide attractive returns and innovative solutions to investors. An example of this are the greenhouse gas reduction targets that it has set under the Science Based Targets initiative in line with the 1.5°C scenario. It has a broad presence in the unlisted market through its local and specialised teams. Its investment strategies cover minority and majority investments in portfolio companies and real estate, as well as infrastructure assets. It also provides wealth management solutions. Its service business includes procurement services. Altogether, CapMan employs approximately 180 professionals in Helsinki, Stockholm, Copenhagen, Oslo, London, Luxembourg and Jyväskylä. It has been listed on Nasdaq Helsinki since 2001. Learn more at www.capman.com. 

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Visma attracts new investors for further international expansion in a transaction valuing the company at EUR 19 billion

HG Capital
  • Investment follows another period of strong growth and continued international expansion, with now 17-years of uninterrupted, year-on-year, revenue and EBITDA growth (18% and 22% CAGR respectively, during the period).

  • Visma will welcome around 20 new investors to the shareholder register, worth over €1bn of equity investment. In addition the transaction will result in c. €3bn new investment from existing shareholders including majority investor, Hg.

  • With revenue of €2.4 billion, Visma will continue its growth strategy of international expansion and product innovation, supported by a solid and knowledgeable shareholder base.

London, UK and Oslo, Norway. 21 December 2023.  Visma, a leading provider of mission-critical cloud software in Europe and Latin-America, today announces that it has expanded its shareholder base through a secondary sale to leading international shareholders, to support further international growth.

The transaction, which values Visma at EUR 19 billion, will welcome around 20 new investors to the shareholder register, worth over €1bn of equity investment, with new investors including Altaroc, Jane Street, NPS and NYC Retirement System.

The transaction will also result in around €3bn new investment from existing shareholders, including Hg, who will continue its 17-year long investment in the business with a majority stake, in addition to a group of co-investors including ICG, TPG and Visma management. 

“We are delighted to receive this further vote of confidence from Hg and other leading investors, in a transaction that confirms our stellar development and attractive outlook. Visma delivers the digital tools that businesses need to drive efficiency, innovate and stay competitive. Supported by a solid and knowledgeable shareholder base, we are perfectly positioned to continue our unique growth journey”, says Merete Hverven, CEO of Visma.

Visma’s growth journey

Today Visma is the largest privately-owned software business in Europe, and a leading provider of cloud accounting and ERP solutions to small and medium sized businesses in the region. After a period of significant international expansion, entering France, Germany, Portugal, Peru and Iceland in the last two years alone, the Group is currently present in 28 countries with more than 15,000 employees.

Meanwhile, divestments of non-core assets within IT consulting and cloud infrastructure services in 2022 has further focused the company’s business model on standardised SaaS (Software as a Service) products to the private and public sectors. Visma’s annualized repeatable revenue (ARR) stood at EUR 2.2 billion at the end of Q3 2023, representing a growth of 17 percent from the same period last year and 17 years of uninterrupted, year-on-year, revenue and EBITDA growth (18% and 22% CAGR respectively during the period).

“Visma’s success is a result of the fantastic efforts of our highly skilled and engaged employees. With our industry-leading investments in product development and AI-driven automation of critical business processes, we remain well equipped to capture the strong growth in digital services”, Hverven adds.

Nic Humphries, Senior Partner at Hg, said: “Today Visma is Europe’s largest private equity owned software business, growing twice as fast now compared to when we first invested in 2006, despite having become a business that’s over 20 times larger. This incredible achievement is the result of an investment in modern SaaS products over ten years ago, progressed by a thirst for innovation and a world-class management team led by Merete. We welcome our new investors and look forward to the next chapter of this European tech success story.”

For more information, please contact:

Lage Bøhren, Director of Communications at Visma
+47 921 57 801
lage.bohren@visma.com

Tom Eckersley, Head of Marketing at Hg
+44 20 8148 5401
Tom.Eckersley@hgcapital.com

About Visma

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The Ferd Foundation

Ferd

I am not going to live forever. I must act on this insight.

I have therefore decided that the A Shares, which I currently own and which have the voting rights that provide control over Ferd, will be transferred to the ‘Ferd Foundation’ when I die, if not before. The Foundation will be set up either when I die, or when my enduring power of attorney enters into force, or because I decide to set up the Foundation while I am still capable of taking such a decision.

The Ferd Foundation, which will be a commercial foundation, will have as its main aim, to own the A Shares and to ensure that Ferd continues to exercise its societal responsibility. It will elect five of the seven members of the Board of Directors of Ferd Holding. The owners of the B Shares will appoint the two other members. The Board of Directors of Ferd Holding is the body that appoints the management team and takes the major decisions at Ferd.

The Ferd Foundation will have a board comprising five members, three of whom will be independent of the family, and the members of the Foundation’s board will re-elect themselves or bring in new independent members. The two branches of the Andresen family that own the B Shares will appoint one member each. There will be tight restrictions on selling B Shares and on dividends from Ferd. The Foundation will only need a special dividend in exceptional circumstances.

By the time you read this, the four documents that will ensure the future corporate governance of Ferd will have been signed. These are the Shareholder Agreement, my Enduring Power of Attorney and the Foundation Incorporation Document, and my Will and Testament. By the way, if you have now looked up what an Enduring Power of Attorney is and are wondering if you need one, I would say you definitely do.

I think it is right to set up a foundation that can ensure that Ferd in its entirety continues to develop in accordance with the same vision and aspirational values for three reasons:

First, we at Ferd and I personally are now starting to believe what you tell us, namely that we abide by our vision of ‘creating enduring value and leaving clear footprints’ and that in this sense Ferd is unique, not just in Norway. We believe that people who want to work at Ferd have a unique combination of values and potential that they think belong at Ferd. We believe it when banks and advisors say that business owners choose us as partners not because we always promise or pay the most, but because working with us provides the best conditions for them to create value. And we believe it when we hear that even public sector employees say that they are pleased that we take on the responsibilities that we do. The Ferd Foundation will increase the probability that we will be able to continue like this for all eternity, including once I am gone, and regardless of who comes after me.

Secondly, Ferd has achieved systemic value, which is something we also hear others say. Put simply, the value of the Ferd system is far greater than the sum of its parts. But this is not only a question simply of ensuring that the control of Ferd does not become too fragmented, it is also important to develop a self-propelled system with a management team that continues this, regardless of the shareholders’ involvement. A foundation now makes this possible. In terms of the question of which companies we own, either fully or in part, at any given point – we need to have enough self-awareness to continually challenge ourselves in order to understand whether we are still the best owner for our businesses.

My third reason is that I am immodest enough to say that Norway needs a system such as Ferd. Yes, Norway is a rich country, but the share of private ownership in Norway is one of the lowest in Europe. This means that in order to maintain and develop the welfare state in Norway, we continue to be extremely dependent on the revenue from the North Sea, and increasingly on the country’s Oil Fund continuing to grow in value. Private sector value creation is nowhere near enough to pay for the welfare system we have built. Therefore, those of us who take the risk and initiative to buy and develop businesses in Norway and the Nordic region that have global ambitions and that create value here and pay taxes here, are in relative terms much more valuable in Norway than we would be in other countries. With the support of the Ferd Foundation, Ferd is ensured a clear mandate to continue to take initiatives in the societies in which we operate, and also to continue to contribute far beyond its legal responsibilities, as we have done through our work on social entrepreneurship since 2007.

Moreover, in this respect, as our small family who are Ferd’s shareholders is already very fortunate, I am more concerned with the 24,000 families that our employees are part of, and that are of equal value regardless of their country of residence. The contribution of these families to Ferd and our businesses is far greater than the contribution of our family. At the same time, the Andresen family will continue to have both a significant interest and a major responsibility for Ferd continuing to create value in many areas, and the family will continue to contribute to Ferd’s vision. These insights are part of the rationale for the decision to set up the Ferd Foundation.

I am still going strong and I am full of ideas, so there will be many opportunities to do new things and to put Ferd on an even steadier course. But now it’s almost the Christmas break and time to be with our nearest and dearest – rather than thinking about systems. Everything in its own time.

Merry Christmas, with every hope for a more peaceful year in 2024.

Categories: News

EQT Private Equity to invest in software companies HVD Group and Next

eqt
  • HVD Group and Next provide cloud-based software to tradespeople and construction firms in the Nordics, targeting a range of professions including electricians, plumbers and contractors
  • The tradespeople and construction industry is one of the largest globally while being one of the least digitized. The modern software solutions offered by HVD Group and Next enable customers to embark on a digitalization journey that improves their efficiency and sustainability
  • EQT Private Equity will invest in HVD Group and Next together with the existing HVD Group shareholder Adelis, which will increase its investment

EQT is pleased to announce that the EQT X fund (or “EQT Private Equity”) has agreed to invest in the Nordic software companies HVD Group (Hantverksdata) and Next (Next One Technology). Both companies serve the tradespeople and construction industry, with HVD Group focused on installation and service professions – such as electricians, plumbers, heating and ventilation firms – while Next is focused on contractors. HVD Group’s platform complements that of Next, and the investment therefore paves the way for a further strengthened product offering, which builds on both companies’ strong customer satisfaction scores.

The tradespeople and construction industry is one of the largest globally and yet is still early on its digital transformation journey, which has resulted in low productivity growth over recent decades. HVD Group and Next support the tradespeople and construction workforce to transition from using analogue or complex solutions to instead using their end-to-end software platforms.

HVD Group was founded in Sweden and has over 10,000 customers across the Nordics and Germany. The Company offers cloud-based end-to-end field service management and enterprise resource planning software with key functionalities such as order, project and asset management, scheduling, time reporting, procurement and documentation handling. This enables users to spend less time on administration, while reducing waste and minimizing risk of errors both in the field and the back office.

Next, also founded in Sweden, offers a cloud-based software solution to construction firms and has a strong complementary fit with HVD Group. With approximately 2,500 customers primarily in the Nordics, Next supports contractors, builders and service firms with project management software. Key functionalities include order and resource management, project financials, document handling, checklists and quality control, all of which enable efficient planning, execution and collaboration.

Ali Farahani, Partner within EQT Private Equity’s Advisory Team, said: “Investing in HVD Group and Next creates a strong Northern European platform with leading tech and product capabilities. We have followed the space for several years and are excited to back what is in our mind the most attractive platforms in one of the largest verticals globally. We are extremely impressed by the respective teams led by Mikael and Johan, and we look forward to bringing EQT Private Equity’s software experience to support the organizations through the next phase of continued high growth.”

HVD Group Chairperson Anders Böös and Adelis Partner Joel Russ added: “As long-term investors in HVD Group, we’ve seen the company go from strength-to-strength and it’s clear they have no intention of slowing down. We also know that the tradespeople software sector is robust and attractive given the size and growth, supported by many companies yet having to embrace the benefits from digitalization. That’s why we’re delighted to be moving forward on the journey together with EQT, HVD Group and Next.”

HVD Group CEO Mikael Viotti said: “We’ve made significant investments in our modern product and technology over the recent years, which has been well-received by our customers, and the opportunity to join forces with Next will only strengthen what we can offer to our customers. We look forward to partnering with EQT Private Equity and Next, while continuing to work with Adelis.”

Johan Jarskog, CEO of Next, also commented: “Next and HVD Group have an exciting and complementary fit. Not only from a product perspective, but also in terms of the culture and people, having followed Mikael and his team over the recent years. We are also confident that a combined offering will continue to drive our already high customer satisfaction, as we together with HVD Group will be able to offer an even more comprehensive product to our end users.”

Both transactions are expected to close in February 2024. EQT was advised by Vinge and Adelis was advised by White & Case. Next previous owner Monterro was advised by Houlihan Lokey.

With these transactions, EQT X is expected to be 30 – 35 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on target fund size.

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT X will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with EUR 232 billion in total assets under management (EUR 128 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
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About HVD Group 
HVD Group has 300+ employees, SEK 500+ million in revenues and 50+ years of experience providing software to tradespeople within installation, services and construction. The company has presence in Sweden, Finland, Norway, Denmark and Germany, offering a market leading cloud-based and modular system. HVD Group’s solutions and systems are developed by tradespeople for tradespeople. www.hvdgroup.com

About Next One Technology
Next One Technology is a leading provider of business and project management systems tailored for construction firms. Next has 2,500+ customers and SEK 200+ million of revenues. Next integrates all aspects of construction management into a unified platform that provides real time control of projects from early stages to finish. Next has 130+ employees and serves customers primarily in the Nordics. www.next-tech.co

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Ferd chosen as partner in underwater technology company General Oceans

Ferd

Nortek constitutes the largest part of General Oceans and was founded in 1996 by Atle Lohrmann. The company is based at Rud in Bærum and develops acoustic sensors to measure water movements, such as ocean currents and waves, for the navigation of underwater vehicles and various measuring instruments. The systems are distributed to over 90 countries worldwide, including for sustainable resource utilisation, monitoring of climate change, and the maritime and defence industries. The company has, for a long time, delivered solid financial results by continuously introducing new functional systems and maintaining long-term customer relationships.

Apart from Nortek, General Oceans comprises the companies Tritech, Klein Marine, Reach Robotics, and Strategic Robotic Systems (SRS). The first two provide various types of sonars, Reach Robotics delivers gripping systems for underwater robots, and SRS develops the next generation of underwater vehicles. Together, General Oceans forms a consortium that is well-positioned to exploit market opportunities within ocean technology.

Ferd is pleased to be chosen as partner and looks forward to further developing the company alongside the principal shareholder and CEO Atle Lohrmann, as well as the rest of General Oceans. The potential of marine technology intrigues us, and we believe there will be a high demand for products that assist in understanding what happens beneath the sea surface.

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CVC Funds and Emma Capital acquire Packeta, a leading e-commerce logistics and delivery player in Czechia and Slovakia

CVC Capital Partners

CVC has agreed to acquire Packeta Group (“Packeta”), a leading e-commerce logistics and out-of-home delivery player in the Czech Republic and Slovakia through its CVC Capital Partners VIII. CVC Funds will acquire the business in partnership with local investment group EMMA Capital. The transaction is also envisaged to be capitally supported by R2G on closing.

Since its founding in Prague in 2010, Packeta has developed into one of the leading out-of-home logistics players in the Czech Republic and Slovakia, with nation-wide delivery networks and one of the most trusted and recognisable brands in the region. Packeta, through a footprint of more than 9,000 third-party pick-up and drop-off points and more than 6,000 automatic parcel machines, provides comprehensive last-mile e-commerce delivery solutions to a customer base of over 45,000 retailers, as well as straight to consumer home delivery services.

Quotes

Following several investments in Czech headquartered but internationally successful businesses, we are really excited to help further excel Packeta’s expansion.

Jakub ČandaSenior Managing Director

Jakub Čanda, of CVC said: “Following several investments in Czech headquartered but internationally successful businesses, we are really excited to help further excel Packeta’s expansion. As a leading player operating in this growing sector, supported by multiple consumer spending tailwinds, Packeta is very well positioned for further growth in in its core geographies. Looking to the future we see significant opportunity to strengthen this position as well as branch out into new markets and customer services segments.”

István Szőke added: “At CVC we have extensive experience of investing across Central and Eastern Europe helping fast-growing businesses achieve ambitious growth strategies and become more efficient at serving their customers over wider geographies. We are looking forward to working together with EMMA Capital to continue Packeta’s development and expansion, further enhancing the high quality services already provided to their customers.”

EMMA Capital’s Investment Director, Pavel Horák, added: “By combining the investment strength and reputation of CVC with our experience in the industry, Packeta can step up from its current position in Czechia and Slovakia and become a much more meaningful player on the European market.”

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