Target Company Overview

Bonnier Capital’s portfolio company, Vertiseit, a prominent player in the Digital Signage and In-store Experience Management market, has successfully acquired the Swedish company Visual Art. This strategic acquisition is expected to position Vertiseit as a leader in its field. Vertiseit is noted for its innovative SaaS platforms, Grassfish and Dise, and has achieved substantial growth in its recurring SaaS revenue over the past decade.

In 2023, Vertiseit reported net revenues of approximately SEK 348 million, alongside an adjusted EBITDA margin of 17%. The company's significant growth trajectory has drawn attention in the digital retail space, making it an attractive target for consolidation with other industry players.

Industry Overview in Sweden

The digital signage and in-store experience management industry in Sweden is currently experiencing robust growth, driven by advancements in technology and an increased demand for innovative retail experiences. Major businesses are increasingly adopting digital signage solutions to enhance customer engagement and streamline their promotional efforts.

Companies like Vertiseit and Visual Art are at the forefront of this evolution, illustrating how digital platforms can transform customer interactions in retail environments. With a host of global brands, including Marks & Spencer and McDonald's utilizing their solutions, the market demonstrates significant potential for expansion.

Furthermore, as consumer preferences shift toward more interactive and personalized shopping experiences, the integration of technology in physical retail spaces is rapidly gaining importance. The increasing reliance on digital solutions is likely to continue fostering growth within the sector, positioning leading companies for prosperous futures.

The merger of Vertiseit and Visual Art not only enhances their product offerings but also broadens their market reach across various countries, including the USA and several European nations. This expansion reflects a strategic alignment with global trends in digital retail management.

Rationale Behind the Deal

The acquisition of Visual Art by Vertiseit aligns perfectly with Bonnier Capital’s long-term investment strategy, which focuses on backing capable entrepreneurs and fostering companies with significant growth prospects. Vertiseit aims to combine its strengths with Visual Art’s established brand and talented workforce to create a dominant force in the digital signage industry.

This strategic move is expected to amplify Vertiseit's current offerings, enhance operational efficiencies, and significantly increase its market share. The combined entity is projected to yield greater value for customers and stakeholders alike.

Investor Information

Bonnier Capital is a well-regarded investment firm committed to nurturing innovative businesses. With a focus on long-term strategic growth, Bonnier Capital has been closely observing both Vertiseit and Visual Art and recognizes the potential synergies that this acquisition presents.

Following the transaction, Bonnier Capital's stake in Vertiseit will increase from less than 2% to nearly 18% of the outstanding shares, showcasing its deep commitment to the company’s future success and direction.

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This transaction marks a critical juncture for Vertiseit and aligns with the growing trend in the digital signage industry toward consolidation for enhanced competitive advantage. The acquisition is poised to deliver substantial synergies and positions Vertiseit to better serve its diverse international client base.

With the combined revenues of Vertiseit and Visual Art reaching approximately SEK 692 million, the new enterprise is well-equipped to capitalize on the burgeoning growth in recurring software revenue, which is expected to thrive even further with an annual growth rate exceeding 20%.

The investor's confidence, as demonstrated by Bonnier Capital's increased ownership and their active involvement in facilitating this consolidation, further solidifies the notion that this deal is a sound investment. The expertise of Visual Art's team will be invaluable as they enhance Vertiseit's service offerings and geographic footprint.

Overall, this acquisition is viewed as a strategically sound decision that not only strengthens Vertiseit’s market position but also signals positive growth potential in the evolving landscape of digital signage.

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