Altor exits SPT Group at 4-5x multiple

Reports suggest the deal was valued at around €350m. Altor exited at a 4-5x multiple, corresponding to an IRR of around 30%, which includes a 2011 recapitalisation of the company. Other investors, led by Cubera Private Equity, reported a "substantial gain" from the sale of their minority stake.

Partner Reynir Indahl told unquote" that Altor has taken a number of steps to boost SPT's growth and international presence since 2006. The management team was strengthened with new CEO Tom Even Mortensen, international offices were opened, new systems and infrastructure were put in place, and the product range was expanded into new areas such as wells and drilling.

Indahl observed that Schlumberger has a software division with adjacent products, and is likely to achieve significant synergies in sales and products.

Previous funding
HitecVision originally led a 2004 buyout of SPT, investing from its third fund.

In mid-2006, Altor took a 70% stake in the company, leaving previous investors with a 30% ownership on a pro-rata basis. The deal, estimated to be worth less than €25m at the time, was supported by a senior debt package from DnB Nor.

HitecVision exited its investment in SPT in July 2008, selling a portfolio of companies from its third fund to Norwegian secondaries specialist Cubera Private Equity.

Company
SPT Group, founded in 1971, develops modelling solutions for the oil and gas industry, focussing on multiphase flow and reservoir engineering. Headquartered in Kjeller, Norway, the company employs 280 staff in 11 countries, and recorded a €50m turnover in 2010.

People
Partner Reynir Indahl, partner Hugo Maurstad, associate Maria Tallaksen, and industrial adviser Cato Holmsen worked on the deal for Altor. Indahl was previously chairman of the SPT Group.

Advisers
Vendor - Wiersholm, Ståle Gjengseth, Nils H. Thommessen, Kristen Vegge, Christian Fenner, Johan Svedberg (Legal); JP Morgan, Eamon Brabazon (Corporate finance); PwC (Financial due diligence).

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