Target Information

Onguard, a leader in cloud-based credit management software, has been successfully acquired by Visma, a prominent business software provider based in Norway. Established in Amsterdam, Onguard specializes in providing comprehensive Order-to-Cash solutions, encompassing invoicing, risk management, credit management, and collections. The company boasts a dedicated workforce of approximately 120 employees and serves over 600 clients globally, solidifying its position in the industry.

Since Pride Capital Partners' investment in April 2014, Onguard has exhibited remarkable growth. This strategic partnership included a mezzanine loan aimed at facilitating the company's transition from traditional one-off licensing to a recurring subscription-based model, enhancing its scalability and revenue sustainability.

Industry Overview

The cloud-based software industry has experienced exponential growth, particularly in Europe. Businesses increasingly prioritize digital transformation, driving demand for software solutions that enhance operational efficiency and customer engagement. As organizations adopt cloud technologies, they seek integrated platforms that offer comprehensive management capabilities, including credit and financial processes.

In the Netherlands, where Onguard is headquartered, the adoption of cloud solutions is accelerating. Businesses recognize the competitive advantage of utilizing advanced software to streamline credit management practices. The Dutch market is characterized by its robust regulatory framework and a high level of trust in technological solutions, making it an ideal environment for companies like Onguard to thrive.

The growth of financial technology (fintech) in the region further solidifies the significance of players like Onguard. With increasing competition in the credit management sector, the need for accessible and effective solutions drives innovation and investment, contributing to a vibrant ecosystem that supports company growth.

This dynamic industry landscape, coupled with the rising trend of subscription models, positions Onguard as a pivotal player in the European credit management software market.

Rationale Behind the Deal

The acquisition of Onguard by Visma represents a strategic move to enhance Visma's product offerings and expand its footprint within the European fintech space. By integrating Onguard's innovative Order-to-Cash solutions, Visma aims to provide clients with comprehensive tools that streamline financial operations, thereby increasing their market competitiveness.

With Visma's backing from reputable private equity firms like HgCapital, there is strong potential for Onguard to scale further and leverage additional resources to fuel its growth trajectory. This partnership presents a synergistic opportunity for both companies to capitalize on the burgeoning demand for cloud-based financial solutions.

Investor Information

Visma is a well-established provider of business software solutions in Europe, focusing on transforming the way organizations conduct their financial and operational activities. Backed by leading private equity firms, Visma has consistently expanded its portfolio through strategic acquisitions, enabling it to offer a diverse range of solutions tailored for businesses of all sizes.

The company's investment in Onguard aligns with its mission to enhance software capabilities and deliver comprehensive solutions that address evolving market needs. With a robust support system, Visma is well-positioned to drive Onguard's growth and innovation in the competitive fintech landscape.

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In my expert opinion, the acquisition of Onguard by Visma is a strong investment decision that is likely to yield positive outcomes for both companies. Onguard's established market presence, combined with its innovative solutions, positions it as a valuable asset within Visma's broader strategy to dominate the cloud-based software sector. This deal promises to enhance Visma's product suite and offers significant potential for cross-selling opportunities across its existing client base.

Moreover, Onguard's impressive revenue growth since 2014 indicates that its subscription-based model is not only sustainable but also scalable. This recurring revenue model appeals to investors seeking long-term value, making it a favorable addition to Visma’s offerings.

The combination of Visma's resources and Onguard's market expertise can drive further innovation, enabling the development of even more advanced credit management solutions. Additionally, the partnership can facilitate expansion into new markets, capitalizing on Onguard’s strong reputation and Visma's broad reach.

Overall, this acquisition exemplifies a strategic alignment in enhancing product capabilities and leveraging both companies' strengths to foster growth, benefiting stakeholders and customers alike.

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