Warburg Pincus and TPG have agreed to invest in Visma, a provider of business software to small and medium-sized companies, retailers and local authorities across the Nordic, Benelux and Baltic regions. No financial terms were disclosed. Also, previous backers Hg and CPPIB will expand their investment in Visma. Following completion of the transaction, Hg will continue to own a majority stake in Visma, alongside co-investors GIC, ICG, CPPIB, General Atlantic, TPG, Warburg Pincus and management.
European software provider Visma is pleased to announce that Hg, a leading software investor and current majority shareholder of Visma, has agreed to further its investment in the company. Existing investor CPPIB will also acquire additional stakes. Furthermore, global investment firms TPG and Warburg Pincus will become investors in Visma for the first time. TPG manages funds in growth capital, public equity, and other investments, while Warburg Pincus specializes exclusively in private equity and growth investing. Their contributions will be vital to continue Visma’s success and expansion in Europe.
Following completion of the transaction, Hg will continue to own a majority (54%) stake in Visma, alongside co-investors GIC, ICG, CPPIB, General Atlantic, TPG, Warburg Pincus, and management. Through this transaction, neither the management nor core strategy of Visma will change. The new owners will join the existing owners and management to continue to develop Visma in accordance with the existing strategic priorities. As has been Visma’s core strategy for years, high-quality products and services, good customer care, and innovations within cloud services to achieve business efficiency will remain top priorities.
Visma’s journey has taken the company from a Nordic focus to becoming one of Europe’s most business-critical software providers for the private and public sectors. From a valuation in 2014 of US$3.5 billion, to today’s US$12.2 billion (NOK 110 billion), Visma has achieved uninterrupted, year-on-year revenue growth by focusing on building world-class cloud solutions that help customers improve efficiency and competitiveness.
Visma’s focus on cloud has proven to be especially vital this year, as Visma’s customers of varying sizes and industries have been able to remain competitive in the face of a covid-19 pandemic that has overwhelmed markets across the world. At the same time, the future looks bright for the growth of digital services as businesses increasingly see the value of cloud solutions to handle their most important business processes. Visma is uniquely positioned to foster this growth thanks to its international presence and network, combined with national resources and expertise that can be directed towards local markets.
Merete Hverven, Visma’s CEO, had this to say: “For almost 15 years now, Visma has benefited from a supportive and highly knowledgeable private equity investor base. Their guidance and know-how in the software sector has enabled us to consistently expand both our product offering and geographic footprint. This includes a significant investment in cloud computing which has strengthened both our customer and shareholder value. As we continue to invest in world-class technology, including new areas of innovation such as AI and machine learning, we warmly welcome this new investment. We also highly value the support we continually receive from our existing investors. We look forward to continuing Visma’s strategy to create a fully online ecosystem for businesses across Europe.”
Nic Humphries, Senior Partner and Head of the Hg Saturn team said: “Visma is Europe’s biggest success story in cloud software for businesses. This is a result of consistent investment in SaaS technology by Øystein Moan, Merete Hverven and their world-class team. Today we’re as excited as we’ve ever been about the future prospects of the business. Most recently, covid-19 has demonstrated the power of Visma’s cloud solutions – empowering businesses to stay connected and continue working through the crisis. We’re also delighted to welcome new investors, who join the other strategic investors already supporting Visma across the globe.”
Visma offers software and services that simplify and digitalise core business processes in the private and public sector. The Visma group operates across the entire Nordic region along with Benelux, Central and Eastern Europe. With more than 11,000 employees, over 1,000,000 customer contracts and net revenue of €1.5 billion in 2019, Visma is one of Europe’s leading software companies. Visit visma.com.
Hg is a leading European investor in software and services, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses.
The Hg Saturn team launched in 2018 as a natural extension of Hg’s software and technology services focus. The objective of Saturn is to invest in companies valued at an enterprise value of approximately £1 billion and above, with equity requirements in excess of £500 million, behind the same technology business models into which Hg already invests through its existing funds.
Hg has funds under management of over $30 billion, with an investment team of over 140 professionals, plus a portfolio team of more than 30 operators, providing practical support to help our businesses to realise their growth ambitions. Based in London, Munich and New York, Hg has a portfolio of over 30 software and technology businesses, comprising over 30,000 employees across the UK, US and Europe. For further details, please visit the Hg website: https://hgcapital.com/.