Nordic Capital Fund VII is to sell EG A/S, a Scandinavian IT software and service provider, to Axcel IV.
During Nordic Capital’s five year ownership period, EG has developed ahead of the initial strategic plan, driven by a clear focus on offering market leading solutions for selected industry verticals, organisational transformation, operational effectiveness, geographical expansion and IT service market consolidation. In addition, since 2009, EG has completed 14 add-on acquisitions in Denmark, Norway and Sweden.
“We are very pleased with and proud of the strong development and performance of EG during Nordic Capital’s ownership. The ambition for Nordic Capital when acquiring EG in 2008 was to enable and support the long-term growth of the company and consolidation of the industry. The company has significantly strengthened its market position and is well placed to continue to develop and grow under the new ownership. We would like to thank the management team and EG employees for their contribution and dedicated work during Nordic Capital’s ownership,” says Lars Terney, chairman of EG A/S and partner of NC Advisory, advisor to the Nordic Capital funds.
EG is a Danish headquartered IT software and services provider with a market leading position within industry specific IT solutions, implementation and consultancy services in the Scandinavian market. The company’s position in Denmark, Norway and Sweden is based upon close relationships with customers, deep industry knowledge and value adding IT solutions. The company is amongst the world’s leading Microsoft Dynamics ERP partners.
Despite the financial crisis, EG has grown revenue by close to DKK500m and EBITDA by more than DKK100m during the Nordic Capital ownership period. In 2012, the company achieved its best-ever result in the group’s 35 years history with revenue of DKK1,502m and normalised EBITDA of DKK163m and the company is poised to make 2013 another record year.
“EG has been on a fantastic journey over the last five years in strong partnership with the Board and Nordic Capital as owners. A clear strategy and relentless execution has enabled us to become the Scandinavian market leader within selected industry specific IT-solutions. With a large customer base, good traction in the business, and most of our 2015 strategy achieved already in 2012, we have built a solid platform for further growth. The exit by Nordic Capital is very well timed as EG is about to roll out our 2017-strategy plan and we will be able to continue our development on a path familiar to both our customers and employees," says Leif Vestergaard, chief executive of EG A/S.
The parties have agreed not to disclose the transaction value. The acquisition is subject to approval by the competition authorities.
Nordic Capital was advised by Carnegie Bank and Accura law firm.
