HgCapital has sold 63.5% of its stake in Visma Holding to KKR for NOK 11.0 billion, capitalizing on significant growth and strong returns since its initial investment in 2006.

Target Information

HgCapital has announced the sale of 63.5% of its stake in Visma Holding, a premier provider of software and business process outsourcing (BPO) services operating in the Nordic region, headquartered in Oslo, Norway. This transaction is valued at an enterprise value of NOK 11.0 billion (£1.2 billion). Since HgCapital's initial investment of £82 million in 2006, the firm has strategically enhanced Visma's growth through multiple bolt-on acquisitions and additional capital investments totaling approximately £19 million. As a result, the return on capital invested delivers an internal rate of return (IRR) of 37% along with an investment multiple of 3.7 times original cost for HgCapital's clients. Following this deal, HgCapital's clients will retain a 36.5% stake in Visma, equivalent to 17.7% of the total company, which provides continued exposure to a leading provider of essential accounting, resource planning, and payroll software and related services for small and medium-sized enterprises in the Nordic market.

Industry Overview

The Nordic region's software and BPO services industry has seen substantial growth due to increasing demand for technology-driven solutions among businesses. The main drivers of this growth include the rise of digital transformation, the need for enhanced operational efficiency, and the trend toward subscription-based service models. As small and medium-sized enterprises embrace technology to streamline operations and improve service delivery, firms like Visma are positioned well to meet this evolving demand.

Moreover, regulatory changes in recent years have further fueled growth by encouraging companies to invest in compliant systems that can better manage accounting and payroll processes. The shift towards cloud-based software has also allowed BPO firms