– Visma is one of Europe’s largest technology companies with revenues of NOK 6.5 billion ($ 1.1 billion), c. 340,000 customers and c. 5,600 employees
– The company provides business software, outsourcing services, commerce solutions, retail IT solutions, and IT related development and consultancy, predominantly to small businesses
– It has c. 100 offices throughout Norway, Sweden, Denmark, Finland, the Netherlands, the United Kingdom, Ireland, and Romania
– HgCapital is a leading European private equity firm with £5.1 billion ($8.7 billion) AuM
– HgCapital was established in 2000 as a spinoff from Mercury Asset Management and today employs more than 100 investment professionals across its offices in the UK and Germany
– The company is currently investing out of its three funds HgCapital 7 (£2 billion), RPP2 (£444 million) and HgCapital Mercury (£400 million)
– HgCapital initially acquired a majority stake in Visma in 2006 via a tender offer and consecutively de-listed the company
– Since 2006, Visma grew organically and with over 75 bolt-on acquisitions from NOK 2.3 billion in 2006 to NOK 6.5 billion in 2013
– Following the sale of a majority stake to Kohlberg Kravis Roberts (“KKR”) in 2010, HgCapital retained a 16% minority stake in the business via its HgCapital 5 fund
– Based on the bright economic outlook for the Nordic region and a promising outlook for the company’s SaaS business, HgCapital decided to re-invest in Visma out of its latest fund HgCapital 7
– Arma Partners was engaged by HgCapital to provide detailed analysis on the business’ transition towards a more SaaS-centric business model and to evaluate potential exit scenarios
– Arma Partners provided in-depth analyses of the varying degrees of success of several transitions from a license/maintenance-based model towards a SaaS-centric business model and the resulting value implications
– This transaction demonstrates Arma Partners’ deep insight and breadth of knowledge in the Software space, particularly with regards to traditional, license/maintenance-based businesses aiming to transition towards a SaaS business model