HG CAPITAL, GIC, MONTAGU PRIVATE EQUITY & ICG take majority stake in VISMA GROUP

Private equity sponsor Hg has agreed to a further investment to cement its majority ownership position in cloud software provider Visma. This equity syndication broadens the shareholder base through a secondary sale, welcoming approximately 20 new institutional backers, including Altaroc, Jane Street, and the NYC Retirement System. Concurrently, the existing investor consortium (comprising ICG, TPG, and Visma's management team) is rolling over capital to reinvest in the platform. As part of the corporate reshuffle, the legacy Hg Genesis 7 fund will fully exit its remaining position in the business. For Hg, maintaining its 17-year stewardship of the asset secures funding for Visma's ongoing cross-border market penetration. Following a recent geographical expansion into France, Germany, Portugal, Peru, and Iceland, the software group now operates across 28 countries. Having streamlined its business model in 2022 by divesting non-core IT consulting and cloud infrastructure divisions, Visma operates as a pure-play SaaS provider. Under the continued leadership of CEO Merete Hverven, the commercial roadmap focuses on leveraging this expanded institutional network to drive product innovation, specifically targeting AI-driven automation within its core accounting and ERP software solutions for SMBs.

KKR is partially exiting its controlling stake in Nordic software group Visma. This equity reshuffle enables HgCapital to reinvest through its HgCapital 7 fund and the listed HgCapital Trust, while bringing Cinven on board as a new equity partner. Subject to regulatory clearance, the transaction establishes a balanced governance triumvirate, with KKR, HgCapital, and Cinven each holding an equal 31% stake. Concurrently, the legacy HgCapital 5 fund (2006 vintage) will fully exit its historical position. The deal allows KKR to realize partial liquidity without completely stepping away from the asset. For HgCapital, which has tracked Visma since 2004, this reinvestment doubles down on a predictable, subscription-based business model. As the dominant provider of ERP and payroll software for Nordic SMEs, Visma's priority is accelerating the migration of its core products to a pure SaaS architecture. The newly formed sponsor consortium will back the incumbent management team over a five-to-six-year horizon, driving value through organic growth and an aggressive bolt-on acquisition strategy to scale operations and expand margins.

Private equity firm HgCapital has entered into a definitive agreement to sell a 63.5% portion of its stake in Nordic software provider Visma to global investment firm KKR. Through this partial realization, which is subject to customary regulatory clearance and expected to close in November 2010, HgCapital will retain a 17.7% minority equity position in the overall business. Concurrently, Visma’s management team and employees will increase their ownership percentage within the newly restructured corporate framework. For the selling sponsor HgCapital, the transaction crystallizes a highly successful investment cycle that began with the target's public-to-private buyout in 2006. By rolling over a minority stake, HgCapital maintains strategic exposure to the future upside of Scandinavia's leading provider of mission-critical accounting, ERP, and payroll software tailored for small and medium-sized enterprises. For KKR, the acquisition secures a partnership with a highly resilient technology asset that has consistently expanded its operational margins, workforce, and overall market footprint. Under the continued leadership of CEO Oystein Moan, the joint sponsor backing will support Visma's ongoing commercial strategy, focusing on scaling its predictable, regulatory-driven SaaS revenues and executing further pan-regional bolt-on acquisitions.

Following the collapse of a competing bid from business software group Sage, European mid-market investor HgCapital has launched a cash offer to acquire all outstanding shares of Visma. Executed through the designated acquisition vehicle Engel Holding, the transaction is structured as a public-to-private buyout that will result in the delisting of the Norwegian accounting software group from the Oslo Stock Exchange.