Information on the Target

One Equity Partners ("OEP"), a middle market private equity firm, has successfully completed the sale of its stake in Crayon Group Holdings SA ("Crayon" or "the Company"). Headquartered in Oslo, Norway, Crayon is a prominent value-added reseller specializing in cloud and SaaS solutions, as well as serving as an IT infrastructure manager and consultancy firm. Notably, Crayon ranks as the fifth-largest value-added reseller of Microsoft licenses globally.

With an extensive presence across 46 countries, Crayon caters to approximately 80,000 customers, including small to medium-sized businesses (SMBs) and large multinational corporations such as AWS, Google, Microsoft, and Oracle. The Company boasts a workforce of more than 4,000 employees worldwide, highlighting its significant scale and operational capacity.

Industry Overview in Norway

The software asset management (SAM) and cloud optimization industry in Norway has witnessed substantial growth in recent years, fueled by a surge in digital transformation initiatives and the increasing adoption of cloud technologies. As businesses strive to enhance operational efficiency, SAM solutions have emerged as crucial for managing software licenses and optimizing cloud resources.

Norway's technology landscape is characterized by a robust infrastructure that supports innovation, making it an attractive environment for companies like Crayon. The nation's strong emphasis on sustainability and digitalization aligns with global trends, positioning Norwegian firms to capitalize on growing demand for cloud services and efficient software management.

Furthermore, the Norwegian government has undertaken several initiatives to foster a knowledge-based economy by promoting digital solutions and technological advancements. This supportive regulatory framework, along with investments in IT infrastructure, has created fertile ground for companies operating within the SAM and cloud optimization sectors.

As a result, the industry in Norway is projected to continue its upward trajectory, with expanding opportunities for value-added resellers and consultancy firms that specialize in enhancing software utilization and optimizing cloud environments.

The Rationale Behind the Deal

The decision by One Equity Partners to exit its investment in Crayon Group Holdings was driven by the Company's remarkable growth trajectory and strong financial performance. During OEP’s investment period, which commenced in August 2018, Crayon successfully completed seven acquisitions, significantly enhancing its market share and operational capabilities.

Between 2019 and 2023, Crayon demonstrated exceptional growth, achieving a compound annual growth rate (CAGR) exceeding 30% in both gross profit and EBITDA. As of 2023, the Company reported gross profit of NOK 5.7 billion and EBITDA of NOK 919 million. Additionally, Crayon's stock price increased more than fivefold from January 2019 to December 2023, underscoring the value created during OEP's ownership.

Information About the Investor

One Equity Partners ("OEP") is a respected middle-market private equity firm with a focus on the industrial, healthcare, and technology sectors in North America and Europe. The firm is dedicated to building market-leading companies through strategic and transformative business combinations. With an established presence and a differentiated investment methodology, OEP has positioned itself as a trusted partner across various industries.

Since its founding in 2001 and subsequent spinout from JP Morgan in 2015, OEP has successfully completed over 400 transactions globally. With offices located in New York, Chicago, Frankfurt, and Amsterdam, the firm leverages its extensive experience and a senior team to generate long-term value for its partners. More information can be found on their website: www.oneequity.com.

View of Dealert

The recent deal involving One Equity Partners and Crayon Group Holdings represents a strategic and well-timed exit, given the impressive performance of Crayon during OEP's investment period. The Company’s ability to achieve rapid growth and expand its market presence through acquisitions makes it an attractive target for investors seeking high-growth opportunities in the SAM and cloud optimization sectors.

Crayon's strong financial results, including significant increases in gross profit and EBITDA, reflect the firm's successful operational strategies and market positioning. This performance highlights the Company's resilience in a competitive landscape, likely providing potential buyers with confidence in future growth prospects.

Moreover, considering the broader trends in the technology sector, including the accelerated adoption of innovative digital solutions and cloud services, Crayon is well-positioned to capitalize on ongoing industry momentum. The record increase in Crayon's stock price also suggests that investor sentiment remains positive towards the company, further validating the deal's timing.

In conclusion, the sale of Crayon by One Equity Partners can be viewed as a strong investment decision, allowing OEP to realize significant returns while positioning Crayon for continued success in a thriving market. Overall, this strategic move aligns well with the growing demand for effective software asset management and cloud optimization solutions.

View Original Article