
Coding human resources: Five Nordic enterprise software deals

Enterprise software companies have been a popular target in the Nordic countries this year, with good dealflow on both the buy and sell side suggesting a sector poised for a wave of consolidation. Mikkel Stern-Peltz looks at five H2 deals for enterprise software companies in the region
1 – Marlin Equity buys Bluegarden for DKK 500m
US-based GP Marlin Equity acquired Danish payroll and HR administration software provider Bluegarden for a reported DKK 500m in September, making a substantial play in the Nordic enterprise software sector.
Bluegarden processes payroll for around 20% of all salaried employees in Scandinavia, and had been owned until the buyout by a group of Danish banks, including the Danish central bank.
At DKK 500m, Marlin would have paid an entry multiple of around 8x EBITDA for the business formerly known as Multidata, which acquired Swedish Bluegarden from listed GP Ratos in 2007 as a regional consolidation deal.
2 – Axcel merges EG and Silkeborg Data
The merger of Danish SME IT services company EG and compatriot HR and payroll business Silkeborg Data by owner Axcel sees the emergence of a combined platform player in the Nordic IT services and enterprise software market.
Both portfolio companies in Axcel's DKK 3.6bn fourth fund, the two companies were bought individually by the GP within a year of each other, the latest being Silkeborg Data in January 2014.
With a heavy focus on products aimed at the public sector in both companies, Axcel is likely hoping the newly-combined business will provide an attractive package of services to the substantial Scandinavian public sector market.
The October merger was financed through a share issue by EG, with the GP providing no equity or financing.
3 – Procuritas acquires Daldata from Via Venture Partners
In August, Sweden's Procuritas Capital Investors bought Norwegian SME accounting software and cloud services provider Daldata from Via Venture Partners, the venture capital arm of Danish pension fund of ATP.
The deal may likely help support further consolidation in the sector, as Procuritas said it planned to grow the company through acquisitions supporting organic growth, following the MBO.
Via Venture Partners' ownership of Daldata proved a pacey affair, exiting the company to Procuritas's €200m fifth fund just three years after first acquiring it.
4 – Vitruvian buys Accountor
Enterprise software investments have not been limited to Scandinavia in the past six months. In Finland, Vitruvian Partners acquired Helsinki-based financial administration and accounting software company Accountor.
The GP was understood to have taken a 65% stake in Accountor following the buyout, with founder and CEO Asko Schrey retaining a substantial stake.
Existing shareholders, including Finnish GP Sponsor Capital, injected fresh capital alongside Vitruvian's investment, resulting in a broad ownership base for Accountor.
The company said it planned to use its capital windfall to invest in its technology, workforce and process improvements.
5 – ChurchDesk raises $2m from Mangrove
In August, VC firm Mangrove Capital Partners backed a somewhat untraditional enterprise software firm, in that the Danish startup it bought targets a customer base steeped in tradition.
Mangrove invested $2m in Copenhagen-based ChurchDesk, an enterprise software company developing a platform that targets churches.
The company's offering includes typical enterprise software aspects such as administrative and management services, but also adds content and engagement tools, all based in the cloud.
ChurchDesk seems to have carved out a nice niche for itself, however, claiming 10,000 customers across Denmark, Germany and the UK, with plans to use Mangrove's investment for further rollout in Europe.
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