Aeternum et al. invest in Hg's Visma at EUR 16bn EV

The deal has seen Intermediate Capital Group (ICG) reduce the size of its stake in Visma, with new shareholders purchasing shares in a secondary sale.

The transaction values Visma at EUR 16bn (NOK 165bn), according to a statement.

Hg will continue to hold a majority stake in the company, alongside co-investors GIC, ICG, the Canada Pension Plan Investment Board (CPPIB), General Atlantic, TPG, Warburg Pincus and Visma's management, as well as the company's new investors.

ABG Sundal Collier and Goldman Sachs International acted as joint placement agents for the deal.

The new capital will be put towards Visma's European expansion, according to a statement.

Reuters reported that Visma could undergo an IPO in 2023, citing a company spokesperson.

The deal announcement comes a year after Hg increased its stake in Visma to 54%, acquiring the shares previously held by Montagu Private Equity. Visma was valued at USD 12.2bn at the time of the deal and its shareholder base comprised Hg, GIC, ICG, CPPIB, Warburg Pincus, TPG, General Atlantic and the company's management.

Previous funding
Hg first invested in Visma 15 years ago, acquiring the company in a NOK 4.32bn (EUR 420m) take-private in 2006. The GP invested via HgCapital 5, which held a final close in February 2006 on GBP 950m.

In October 2010, KKR acquired a 76.9% stake in Visma, with Hg retaining a 17.7% stake. The deal valued Visma at NOK 11bn (EUR 1.1bn).

Cinven invested in the company in 2014 via its 2012-vintage, EUR 5.3bn fifth European buyout fund. The deal saw Cinven, KKR and Hg each hold a 31.3% stake in the business. Visma's management, as well as institutional investors including lmarinen and Storebrand, held the remaining minority stake. The company was valued at NOK 21bn (EUR 2.5bn) at the time. Hg invested via HgCapital 7, having previously invested via HgCapital 5. The realisation generated an overall investment multiple of 5.2x and an IRR of 34% for HgCapital 5, according to Unquote Data.

KKR sold its stake in Visma to a consortium of investors led by Hg in June 2017. Cinven simultaneously sold part of its stake in the business, facilitating the entry of Montagu (via Montagu V), ICG and GIC into Visma's shareholder base. The deal valued the business at NOK 45bn (EUR 4.4bn), corresponding to 22x its last-12-month EBITDA. The new consortium invested NOK 15.2bn (EUR 1.5bn) in equity, leaving Hg with a 41% stake and Cinven with a 17% stake. Hg invested via its 2018-vintage HgSaturn vehicle.

CPPIB took a minority stake in Visma in January 2019, acquiring part of the stake held by HgCapital 7.

In April 2019, Cinven exited Visma's shareholder base, selling a EUR 750m stake to Hg and CPPIB in a deal that valued Visma at EUR 6.5bn. CPPIB invested EUR 110m in equity as part of the deal.

Hg increased the stake it owned in Visma in August 2020, acquiring shares from previous investors, including Montagu, via Hg Saturn 2, which held a final close in October 2020 on USD 4.85bn. The GP also acquired a stake in the business from its own Hg Genesis 7 vehicle, reducing the 2012-vintage fund's holding in Visma.

New investors Warburg Pincus and TPG joined Visma's capital structure as minority shareholders at the same time as Hg increased its stake. The deal saw existing investors including CPPIB and General Atlantic also increase their stakes.

Company
Founded in 1996 and headquartered in Oslo, Visma is an enterprise software platform for SMEs; it provides cloud-based software for functions including enterprise resource planning, accounting, invoicing and payroll. The company employs 13,600 staff and posted net revenues of EUR 1.741 in 2020.

People
Hg – Nic Humphries (senior partner).
Visma – Merete Hverven (CEO).

Advisers
Company – Ropes & Gray (legal); Skadden (legal); Wiersholm (legal).

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• Topics
• Expansion
• Nordics
• Technology
• Norway
• HgCapital
• GIC
• Intermediate Capital Group
• General Atlantic
• Warburg Pincus
• TPG
• Goldman Sachs
• ABG Sundal Collier