Hg-backed Visma and Raet to merge

Visma has launched a €300m term loan add-on financing to syndication towards the €623.1m acquisition of Raet, according to the Debtwire report, which cites three sources familiar with the situation.

The new financing package comprises a €100m add-on to the company's €652m term loan A due in December 2021, as well as a new €200m term loan B3 tranche, the report added.

The incremental proceeds will finance the deal together with €54.6m of cash on the balance sheet, a €120m equity contribution from its shareholders and a €153m deferred consideration.

Visma has been under private equity ownership since 2006, when it was acquired in a NOK 4.32bn take-private by HgCapital 5. In October 2010, KKR acquired a 76.9% stake in the company, reducing Hg's stake to 17.7% in a NOK 11bn EV deal.

Four years later, Cinven invested in the company alongside KKR and HgCapital (now trading as Hg), splitting the ownership stakes at 31.3% each, with management holding the balance.

KKR agreed to sell its entire stake to a consortium of investors led by Hg, in a deal valuing the business at NOK 45bn, in June 2015.

Visma is now controlled by Hg and co-investors (48.9%), Cinven (17.1%), GIC (13.6%), Intermediate Capital Group (7.6%) and Montagu Private Equity (6.2%). A broad management group holds the remaining stake. The company generated NOK 9.346bn in revenues and NOK 2.152bn of EBITDA in 2017.

Taros Capital supported the €315m MBO of Raet from parent company Getronics in 2003. The Dutch HR software company was acquired by CVC in August 2011. HgCapital acquired Raet in a secondary buyout from CVC in March 2016.

Cinven and Montagu declined to comment. Hg and Visma had not returned requests for comment at the time of publication.

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• Topics
• Refinancing
• Nordics
• Technology
• Norway
• Netherlands
• HgCapital
• Cinven
• Montagu Private Equity
• Intermediate Capital Group
• KKR
• Build-up