EQT looking at Sitecore stake sale

Amy-Jo Crowley , Charlie Taylor-Kroll and Carl-Johan Kullving
25 November 2021

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EQT is sounding out buyers for a minority stake in its Danish digital marketing software provider Sitecore, according to four sources familiar with the matter.

Morgan Stanley and Goldman Sachs are advising the Swedish buyout group on the process, three of the sources said. The timing of the process is unclear and talks remain at an early stage, two of them added.

The sell side could launch a process early next year, said two of the sources. "It was going to kick off this fall, but it hasn't, so it will probably come in January," one of them added.

Over the last year, EQT had been exploring Sitecore's options – including an IPO and a full sale – before opting for a minority stake sale, one of the sources said.

Copenhagen based-Sitecore, whose software helps marketers and corporate advertising teams create content and drive engagement, was acquired by EQT in 2016 for an undisclosed sum. Revenues were around EUR 200m at the time, with EBITDA margins of approximately 25%, according to a report by Mergermarket. The deal was understood to value Sitecore at about EUR 1bn, said one of the sources.

Sitecore has already attracted the attention of long-term funds, two of the sources said, with one of them naming Canadian fund Omers, Singapore's GIC and London-based ICG as logical bidders. The sell side is aiming to pitch the business to US-focused investors, another source added.

Investors could look to Canadian e-commerce software group Shopify as a listed comparable business, two of the sources said. Adobe could also be seen as a comparable, one of them added.

In the private market, New York-based Optimizely, formerly known as Episerver, was acquired by Insight Venture Partners in 2020 for a reported valuation of USD 1.1bn.

Sitecore secured a USD 1.2bn investment in January this year for product development and geographic expansion via acquisitions. Since then, it has acquired marketing automation platform Reflektion; Moosend, a UK-based marketing automation software firm; Boxever, an Ireland-based customer data platform developer; and Minneapolis-based Four51, a B2B e-commerce platform.

The company was founded in 2001 in Denmark and has since grown into a global player with headquarters in San Francisco. It has more than 4,600 customers, including brands such as American Express, EasyJet and L'Oréal.

EQT, Sitecore and Morgan Stanley declined to comment. Goldman Sachs did not respond to requests for comment.