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HgCapital sells Nordic software company to KKR for €1.4bn

27 Sep 2010

UK private equity firm HgCapital has sold its 63.5 per cent stake in Nordic software company Visma to US buy-out giant KKR, for an enterprise value of NOK11bn (€1.41bn).

The firm, which took Visma private in 2006 for NOK4.3bn (€543.4m), has realised a 3.7 times multiple and a 37 per cent IRR on its original investment. HgCapital clients are to retain a 17.7 per cent stake in the company.

Headquartered in Oslo, Visma is a accountancy software business with over 230,000 customers, primarily in the SME sector. Headquartered in Oslo, it has over 85 offices throughout Norway, Sweden, Finland and Denmark. The company has three main business segments: accounting software, accounting services and outsourced financial & productivity services, including e-procurement and debt collection.

Visma’s EBITDA has increased from NOK320m in 2006 to a forecast of over NOK865m for 2010.

HgCapital CEO Nic Humphries said, “Our deep sub-sector knowledge enabled us to bring the knowledge of a trade partner to Visma’s management, with the added flexibility and investment horizons of a financial buyer. Our partial exit allows us to maintain exposure to the significant further upside that we see in Visma over the coming years.”

KKR’s European technology head Mati Szeszkowski added, “We have been following Visma for several years and are impressed by the strength of its franchise and management team. Visma is a high quality business with a proven track record of driving growth.”

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