BB Capital, Vortex explore KidsKonnect sale

Francesca Veronesi and Amy-Jo Crowley
12 October 2021

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Sponsors BB Capital Investment and Vortex Capital Partners have mandated Baird to sell Dutch childcare software provider KidsKonnect after two years of ownership, according to three sources familiar with the matter.

The business is marketed based on EBITDA of around EUR 6m–7m and first bids are scheduled for this month, according to the first source.

While education and software assets are proving incredibly popular among PE buyers, the current owners might exit KidsKonnect via a trade sale, one of the sources said. The business already has a "huge" market share and it is not entirely clear how it can keep growing in the Netherlands, this source said, adding that future growth could come from international expansion.

KidsKonnect's childcare management software is designed to help medium-sized and large childcare organisations operate childcare planning, employee planning and parent communication more efficiently. The company is expected to generate a EUR 20m turnover in 2021, according to a statement.

KidsKonnect announced last week that it had acquired Dutch peer Rosa, the fifth bolt-on for the company this year. It also acquired Belgian competitor Deona, its first investment outside of the Netherlands, as well as Dutch childcare software specialists Social Schools, PortaBase and Doenkids.

BB and Vortex acquired a majority stake in KidsKonnect in 2019. KidsKonnect resulted from a merger of four software companies, including Flexkids, Konnect, HHB and TecSoft, according to Vortex's website.

The combined KidsKonnect platforms support childcare companies working with children from infancy up to 12 years of age. Based in Haarlem, the company employs 150 staff, according to a statement.

Baird, Vortex, BB and KidsKonnect did not respond to requests for comment.