Arma Partners advises HgCapital on USD3.5bn recapitalisation of Visma
Arma Partners has acted as financial adviser to HgCapital on its reinvestment in Visma Group, valuing the business at a total enterprise value of NOK21 billion (GBP2.1 billion, USD3.5 billion).
As part of this transaction, KKR is selling part of its majority holding in Visma and Cinven is committing capital for the first time.
HgCapital will be a co-lead investor in the new transaction structure, alongside KKR and Cinven, who will each hold 31 per cent.
HgCapital initially invested in Visma in 2006 through its HgCapital 5 Fund. HgCapital sold a majority of its stake to KKR in late 2010, crystallising a substantial capital gain and still retaining a minority 17 per cent shareholding in 2010 and continuing to play an active board role in the business.
The total return on all capital invested by HgCapital between 2006 and 2014 will generate an overall investment multiple of 5.2x and a gross IRR of 34 per cent.
HgCapital’s re-investment in Visma through its new HgCapital 7 Fund is expected to generate further returns over an anticipated five to six year new ownership period.
HgCapital will continue to work with Visma’s management in the ongoing transition of the company’s software products to Software as a Service (SaaS). Visma is currently positioned as one of the largest SaaS companies in Europe, with potential to accelerate this growth both through organic investment and further acquisitions.
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