Infobric sponsor Summa sees PEs including Nordic Capital, Blackstone prepare binding bids

Auri Aittokallio , Gustav Hoejmark-Jensen , Kezia Joseph , Dominic Pasteiner , Josh O'Neill and Charlie Taylor-Kroll
08 June 2023

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Summa Equityтs sale of Swedish construction technology and services provider Infobric has advanced to the second round, with binding offers expected within a week, according to six sources familiar with the situation.

Four sponsors were admitted to the second round, two of the sources said.

Nordic Capital is among the parties planning to make an offer, two of the sources said, with one of them adding that the sponsor is bidding through its Evolution Fund.

Blackstone is also preparing to make a second-round offer, one of the sources and a seventh source familiar added.

Providence Equity had submitted a non-binding offer, but it is unclear whether the sponsor made it through to the second round, an eighth source familiar said.

HIG Capital, Inflexion and Cinven were among sponsors touted as likely bidders early on in the process run by sellside adviser Raymond James. HIG Capital has since dropped out of the process, one of the sources said.

The sellside's price expectation in the first round was around the SEK 3bn (EUR 257m) mark, a ninth source familiar said.

Infobric expects to reach approximately EUR 70m in FY23 revenue and EUR 20m EBITDA, as previously reported.

First round offers were due the week beginning 15 May, two of the sources and a tenth source familiar said.

While the process has been competitive, according to one of the sources, there are some concerns around the cyclicality of the construction industry, one of the sources and a sector banker tracking the situation cautioned.

There is a risk that large building projects and government contracts that the company targets are likely to be impacted by higher interest rates, the banker said.

The macroeconomic picture and the cyclicality of the construction sector could make securing financing for the deal challenging and any package is likely to be expensive, the source said.

Infobric offers software including Software-as-a-Service (SaaS) solutions for mobile workforce and vehicles management, and solutions for construction site access, attendance, and identity management, according to its website.

The company's offer includes a notable amount of hardware, which can be less attractive to many sponsors, one of the sources and the banker said.

Summa acquired Infobric in 2019 for an undisclosed sum, through its SEK 6.5bn Summa Equity Fund II, a 2019 vintage.

Infobric was established by co-founders Lars Göran Lindqvist, Claes Rydin, Kenneth Johansson and Werner Hilliges in 2004, and traded as SafeTool until it changed its name in 2010.

The company is headquartered in Jonkoping, Sweden, and has four more Swedish offices, as well as offices in Norway, Finland, and the UK. It has 300 employees, as per its website.

Blackstone, Nordic Capital and HIG Capital declined to comment. Summa and Infobric did not respond to requests for comment. Calls made to Providence Equity were not answered and it could not be reached on email.