Information on the Target

Daldata AS is a prominent Norwegian company, established in 1982, specializing in accounting software and cloud services. It has cemented its position as a leading provider in the Norwegian accounting and agriculture sectors, catering primarily to small and medium-sized enterprises (SMEs). With a robust understanding of accounting practices and customer needs, Daldata has developed a competitive product tailored to its core segments and has adeptly adapted to evolving technological requirements.

Operating from its headquarters in Tynset and six additional offices across Norway, Daldata serves approximately 5,000 customers annually. The company boasts a cutting-edge data center that supports its cloud services, which have propelled its consistent growth of 9% annually from 2006 to 2015. For the fiscal year ending December 2015, Daldata's estimated turnover is projected to be 163 million NOK (approximately 18.1 million EUR).

Industry Overview in Norway

The accounting software industry in Norway has experienced significant advancements due to technological innovations and evolving market demands. The increasing adoption of cloud-based solutions has made accounting processes more efficient for businesses of all sizes. This trend has been driven by SMEs, which are increasingly turning to software solutions that offer scalability, flexibility, and responsiveness to specific business needs.

Moreover, the Norwegian government's supportive policies around digitalization have further enabled businesses to invest in modern accounting software. As firms recognize the importance of efficient financial management, the demand for specialized accounting solutions is anticipated to grow steadily.

The agriculture sector, in particular, has been a strong market for technological adoption, as farmers seek advanced tools to manage their operations more effectively. Daldata's focus on this sector positions it well to leverage this trend, offering dedicated solutions that align with the unique requirements of agricultural businesses.

Furthermore, the competitive landscape of accounting software providers in Norway is marked by innovation and expertise. Companies that can effectively harness technological advancements and provide robust customer service are likely to thrive, creating ample opportunities for growth and market penetration.

The Rationale Behind the Deal

The investment in Daldata AS by Procuritas Capital Investors V LP (PCI V) is driven by the aim to leverage the company's market leadership and growth potential in the Norwegian accounting software sector. PCI V recognizes Daldata's consistent growth trajectory and its ability to innovate within its niche market.

With creating value through organic growth and possible acquisitions, PCI V sees significant opportunities to expand Daldata’s service offerings and enhance its market share. Partnering with an experienced management team led by Bjørnar Håkensmoen aligns with these objectives, providing strategic insights and operational expertise.

Information about the Investor

Procuritas Capital Investors V LP is a private equity fund focused on mid-sized companies in the Nordic region. With substantial liquidity, PCI V seeks to acquire compelling businesses that generate sales ranging from €20 million to €150 million. The fund is directed by Procuritas Partners AB and Procuritas Partners GmbH, both reputable firms in the Nordic private equity market.

Procuritas has a long-standing history, having been established in 1986, and has played a pioneering role in promoting management buyouts (MBOs) in the region. The firm excels in initiating, structuring, and financing MBOs, making it a formidable player in the private equity landscape.

View of Dealert

The acquisition of Daldata AS by PCI V offers a compelling investment opportunity, given the company's strong market position and growth potential. Daldata's track record of consistent growth signals resilience and adaptability in responding to market demands. The backing of PCI V, with its focus on developing high-potential businesses, enhances Daldata's capacity to pursue expansion strategies effectively.

Additionally, the favorable market conditions in Norway's accounting software industry support a positive outlook for Daldata. The increasing trend toward digitalization in accounting practices suggests sustained demand for Daldata's products and services, providing a robust foundation for future growth.

Moreover, the partnership with an experienced management team ensures that the company can navigate the evolving industry landscape adeptly. This combination of strong leadership and strategic investment heightens the likelihood of achieving significant operational enhancements and capturing greater market share.

Ultimately, this investment resonates well within the parameters of successful private equity strategies, representing a well-considered move by PCI V to harness growth in a promising sector.

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