Advised HgCapital, on its reinvestment in Visma, the leading ERP Software and BPO provider in the Nordic region

Arma Partners is pleased to announce that it has acted as financial adviser to HgCapital on its reinvestment in Visma Group Holdings (“Visma”), a leading software and BPO services business in the Nordic region, valuing the business at a total enterprise value of NOK 21 billion (£2.1 billion, $3.5 billion). As part of this transaction, KKR are selling part of their majority holding in Visma and Cinven are committing capital for the first time. HgCapital will be a co-lead investor in the new transaction structure, alongside KKR and Cinven, who will each hold 31%.

HgCapital initially invested in Visma in 2006 through its HgCapital 5 Fund. Thereafter, HgCapital sold a majority of its stake to KKR in late 2010, crystallising a substantial capital gain and still retaining a minority 17% shareholding in 2010 and continuing to play an active Board role in the business. The total return on all capital invested by HgCapital between 2006 and 2014 will generate an overall investment multiple of 5.2x and a gross IRR of 34%. HgCapital’s re-investment in Visma through its new HgCapital 7 Fund is expected to generate further attractive returns over an anticipated five to six year new ownership period.

HgCapital will continue to work with Visma’s management in the ongoing transition of the company’s software products to Software as a Service (‘SaaS’). Visma is currently positioned as one of the leading and largest SaaS companies in Europe, with potential to accelerate this growth both through organic investment and further acquisitions.