Buyer for industry specific software company in Scandinavia

• Revenue: > 2M EUR
• Employees: not decisive
• Location of the target: Scandinavia
• Reason for acquisition: The enterprise is a Nordic industry specific software company. It has a strategy for growing its operations in Scandinavia via acquisitions, therefore the management is open to speaking to interested sellers
• #CFIE ITB082

The buyer has more than 30 years of experience on the market and managed to grow in a way that today it employs more than 600 professionals specialized in the field of software services. The revenue has currently reached more than 100M Euro. The company is a key player for vertical market software in the Scandinavian region. It develops business critical software that responds to particular needs of specific industries. It has a strategy for growing that is based on doing acquisitions of well-managed and well-established software companies. The group is currently focused on the Nordic countries, where the management looks for vertical software companies that are profitable and with turnover of 2M EUR or more. Due to the long experience in the market, the company’s responsible persons are able to identify targets that are compatible with the group’s strategy. Some decisive factors are: good profitability and positive cash-flows, aspects that increase the group’s earnings per share.

The buyer’s business model is based on doing acquisitions of mature software companies. Another important part that is taken into consideration in an acquisition process is that the buyer could make an offer to a company that produces products that are partly overlapping or even competes with the buyer’s products. In this case, the organization analyses ways for creating various components and make new developments in order to present a final complete product. The main activity of the company is to develop and deliver standard niche software. It helps the customers to maximize their opportunities, it offers to them business critical software that enables them to take the business to another level. Examples of industries for which the company delivers software products are: energy, auto, education, environment, health, pharmacy, real estate, banking and insurance.

For energy industry, the company offer is represented by 2 products: an advanced forecasting systems used by electricity traders and a calculation and map system designed for the holders of heating networks. In the automotive market, the company’s products are at the base of work processes such as sales, workshops, tire storage and distribution of various parts. Private and municipal companies that are active in the environmental industry use the company’s software products to manage the entire process of waste management. For the pharmacy industry, the company’s products support in the entire workflow, being used in managing product storage, cash register and container handling. For enterprises activating in banking and insurance, there are software products that support specific activities such as portfolio management, pension and mortgage calculations, trade and order management.

The buyer is looking to acquire a company that operates in the same activity and has similar software products used in:

• Portfolio Management
• Energy Forecasting
• Waste Management
• Workflow management
• Pension & Mortgage Calculation

Services delivered:

• Software Product Development
• System Rental
• Solution Implementation
• Data Conversion
• Hardware and Technical Infrastructure
• Training
• Support

• The buyer is an important player for vertical market software
• The buyer’s main activity is to develop and deliver standard niche software
• The company has decided to enlarge its activities in Scandinavia and is looking to buy another company with similar activities and products
• Target companies should be profitable and with positive cash-flows