HG-backed Visma to divest IT consulting unit to CVC

According to a press release, Visma conducted a closed auction process with a selected group of interested parties after receiving strong interest in the business from potential buyers in recent months. A key rationale for the transaction is that both Visma and the unit can achieve stronger growth as two separate businesses.

CVC will invest from its Capital Partners Fund VIII https://www.unquotedata.com/fund/76829, which closed at EUR 21.3bn in July 2020, according to a press release. The fund, with a regional focus on Europe and North America, would typically invest in 30 to 40 companies in its lifetime, with enterprise values of around EUR 1bn to EUR 5bn. Equity ticket sizes would be in the range of EUR 200m to EUR 1bn, according to Unquote Data.

Visma Custom Solutions has been growing 22% annually on average over the last five years, reporting EUR 280m in revenues in 2021, making it one of largest gigital IT services companies in the Nordics, according to a press release. The business generated EUR 21.3m EBITDA, a 19.9% margin, as of 1Q22, according to the company’s financial report. External revenue was EUR 107.3m with a year on year growth of 13%.

The new company’s projects span the entire software and app development lifecycle, leveraging capabilities in GovTech, analytics, cybersecurity and cloud. It will have 30 offices across the Nordic region and in Lithuania, with the headquarters to be located in Copenhagen. CVC will support the new company’s existing management team. Current division director Carsten Boje Møller will be appointed CEO leading both organic growth and future acquisitions, under a new brand.

Company
Since its inception in 1996, Visma has been a provider of business software with 15,000 employees and 1,300,000 private and public sector customers across the Nordics, Benelux, Central and Eastern Europe and Latin America. Visma Custom Solutions is formed of several arms, including Visma Consulting, Visma bWise, Visma Digital Commerce, Visma Digital Marketing, Avento, Giant Leap, Create Solutions and Concepts Consulting. Visma Custom Solutions has 2,000 employees across the Nordic region and in Lithuania, serving 8,000 customers in the private and public sector.

People
Equity − Christoffer Sjøqvist (senior managing director and head of CVC Denmark); Leif Lindbäck (partner and head of CVC TMT EMEA).
Visma − Merete Hverven (CEO).
New company − Carsten Boje Møller (CEO, current division director of Custom Solutions)

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• Topics
• Nordics
• Technology
• Buyouts
• Norway
• CVC Capital Partners
• HgCapital
• Carve-out