GRO Capital acquires Danish software developer Targit

The deal will see founder and CEO Morten Sandlykke resign effective immediately, to be replaced by COO and CTO Ulrik Pedersen. Pedersen and incumbent CFO Jesper Berntson will acquire shareholdings in the Targit newco following the MBO, having also been part-owners prior to the investment. All remaining shareholders have sold their stakes to GRO.

Financial details were not disclosed, but the EV is estimated to be in the DKK 100-250m range.

Previous funding
Targit has previously been backed by private equity; Danish growth investor and former Danske Bank venture division Nordic Venture Partners acquired a 34% stake for an undisclosed sum in June 2003 and exited in April 2011, when Targit's management bought back Nordic Venture Partners' stake for a debt-financed DKK 53m.

Company
Founded in 1986, Targit is a developer of business intelligence software headquartered in Hjørring.

The company sells a business intelligence and analytics suite of products to corporate clients. It employs a total of 67 people, 44 of whom are based in Denmark, 19 in the US and four in Belarus.

According to official financial statements, Targit generated net revenues of DKK 87.48m in 2015, up from DKK 76.75m in 2014 and DKK 66.23m in 2011. EBITDA has fluctuated over the years, from DKK 12.3m in 2011, to DKK 14.9m in 2012, DKK 14.1m in 2013, DKK 10.8m in 2014 and DKK 17.5m in 2015.

In a statement, outgoing CEO Sandlykke said the business is targeting DKK 100m in revenues for the 2016 financial year.

People
GRO Capital – Lars Dybkjær (managing partner).
Targit – Ulrik Pedersen (CEO).

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