The deal sees HgCapital increase its stake in the business to 41%, while partner investors GIC, Montagu and ICG take minority interests. Cinven retains 17% of the business while KKR’s disposal leaves them fully exited from Visma, which saw revenues grow 21% in 2016 to NOK 7.9 billion. Overall, the investment team are ploughing £1.4 billion into Visma.
Should the transaction complete, it would become one of the largest PE deals in European software, according to the PitchBook Platform. This year’s buyout of Polish online marketplace Allegro still leads the way, with the company the subject of a $3.25 billion takeover by Cinven, Permira and Mid Europa. Other top deals below:
The move comes at a time when PE’s appetite for European software is ramping up. PE deals in the space hit 272 last year, per PitchBook, more than 30% up on 2015. And this year’s 130 deals up to 29 June keep it on track to reach a similar level by 2017's end.
Completed PE deals in the European software industry
The rise in PE’s software interest goes hand in hand with the pace and scale of technology developments over the last few years. A prime focus of PE investments this year has come in the financial and business technology spaces. As well as business specialist Visma, notable deals so far this year include Advent and Bain Capital’s €700 million deal for payments services provider Concardis, and Warburg Pincus’ purchase of a roughly 35% stake in banking software company Avaloq.
Pitchbook Platform subscribers can check out the full data on PE investments in European software companies.