KKR, a leading global investment firm, has today announced that it has agreed to sell its entire remaining stake of 28.6% in Visma, together with 40% of Cinven’s shareholding, to a consortium led by HgCapital together with GIC, Montagu and ICG. The transaction values Visma at an enterprise value of NOK 45bn (USD 5.3bn), and ultimately makes it the largest software buyout in Europe and one of the top five globally.
In the new transaction structure, HgCapital will represent 41% of the equity alongside the other consortium members GIC, Montagu and ICG, who will hold minority stakes. While KKR will have realised its entire ownership stake, Cinven will continue as a significant shareholder retaining c. 17% in Visma. The consortium will invest a total of c. NOK 15bn in equity as part of the transaction.
The transaction marks the end of a very successful partnership between KKR and Visma dating back to 2010. Over the past seven years, Visma has grown revenues from NOK 2.8bn in 2010 to NOK 7.9bn in 2016 and expanded EBITDA margins from 19% to 25% on the back of a major strategic transformation moving from an On-premise focused software provider to becoming a leading European Software as a Service (“SaaS”) company. Over the same period, Visma has completed more than 100 add-on acquisitions. Currently, the Company operates in the Nordic region and Benelux.
ABG Sundal Collier and Morgan Stanley acted as joint advisors to Visma and the selling shareholders
Visma is a leading provider of mission critical accounting, resource planning and payroll software to small and-medium sized enterprises and the public sector in the Nordic region and Benelux, based in Oslo, Norway. The Company has been through a strategic shift transitioning its software products from On-premise to Software as a Service (“SaaS”), becoming one of the leading SaaS providers in Europe with ~5,500 employees and 100+ offices. In 2016, Visma had revenues of NOK 7.9bn and an EBITDA of NOK 1.9b