Category Archives: News

Resideo to Acquire Snap One to Expand Presence in Smart Living Products and Distribution

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Hellman & Friedman

SCOTTSDALE, Ariz. and CHARLOTTE, N.C.

  • Creates strong position in security, audio visual, and smart living technology distribution for residential and commercial markets
  • Highly complementary capabilities offer professional integrators an expanded selection of proprietary products, extensive third-party supplier relationships, and proven omni-channel reach
  • Enhances Resideo’s growth and margin profile and accretive to non-GAAP EPS in first full year of ownership
  • Identified expected annual run-rate business and financial synergies of $75 million by year three
  • $500 million perpetual convertible preferred equity investment from CD&R

Resideo Technologies, Inc. (NYSE: REZI), a leading manufacturer and distributor of technology-driven products and solutions, and Snap One Holdings Corp. (Nasdaq: SNPO), a leading provider of smart-living products, services, and software to professional integrators, today announced a definitive agreement pursuant to which Resideo has agreed to acquire Snap One for $10.75 per share in cash, for a transaction value of approximately $1.4 billion, inclusive of net debt. Upon closing, Snap One will integrate into Resideo’s ADI Global Distribution business.

The transaction will combine ADI’s strong position in security products distribution and Snap One’s complementary capabilities in the smart living market and innovative Control4 technology platforms, which is expected to drive increased value for integrators and financial returns. Together, ADI and Snap One will provide integrators an increased selection of both third-party products and proprietary offerings through an extensive physical branch footprint augmented by industry leading digital capabilities.

“The acquisition of Snap One is an exciting step in Resideo’s continued transformation through portfolio optimization, operational enhancements and structural cost savings actions,” commented Jay Geldmacher, Resideo’s President and Chief Executive Officer. “ADI and Snap One are highly complementary businesses and together will meaningfully enhance our strategic and operational capabilities as a significant player in attractive growth categories. We are excited about the enhanced value proposition through increased product breadth, local availability, support services and broad market expertise, as well as the future opportunities this creates for integrators serving residential and commercial markets. In addition, the investment by Clayton, Dubilier & Rice is a testament to the strategic and financial merits of this transaction and provides financial flexibility as we continue to transform and optimize our portfolio. We look forward to the ADI and Snap One teams working together to drive value for all stakeholders through executing on the substantial business and financial synergies we see in combining the two businesses.”

“Snap One has grown from a startup built by entrepreneurial integrators to an industry leader in smart technology, delivering seamless experiences to consumers and high-quality services and support to our integrators,” said John Heyman, Chief Executive Officer of Snap One. “This is the right next step to capture new opportunities to bring our solutions to market. The future of smart living is here. Demand for connected technology products continues to grow, and Resideo is the right owner to drive our expansion. We believe this transaction will deliver compelling value to our stakeholders and will create opportunities for our people and integrator partners.”

“We are excited to support Resideo on this highly strategic acquisition and in their ongoing transformation,” commented Nathan Sleeper, CD&R’s Chief Executive Officer. “I look forward to joining Resideo’s Board of Directors and supporting the business as it executes on this transaction and the significant opportunity we see available over the coming years.”

Benefits of the Transaction

A Strong Position Across Multiple Attractive Categories: The acquisition will combine Snap One’s capabilities for smart living integrators with ADI’s complementary position in adjacent security products distribution. This cross-category expansion will allow the combined organization to materially deepen relationships with integrators to better serve their customers and expand their businesses.

Expansion of Proprietary Offering: The combination is expected to meaningfully accelerate ADI’s existing exclusive brands strategy, leveraging Snap One’s award-winning proprietary product portfolio and product development expertise while providing broader availability through ADI’s network of commercial and residential integrators and omni-channel capabilities. The combined company intends to leverage increased opportunities around innovation to drive value for integrators through a pipeline for proprietary products. Snap One generated 66% of sales from proprietary products in 2023 and these offerings typically carry significantly higher gross margin than third-party products.

Enhanced Integrator Value Proposition: ADI’s and Snap One’s professional integrators will benefit from significant synergy on go-to-market with Snap One’s e-commerce expertise and integrator support platforms and ADI’s 195 stocking locations and extensive digital capabilities. The combination is expected to create a true omni-channel experience for integrators, simplifying the buying experience and enhancing product availability. Additional opportunity exists to enhance value within the Control4 integrator base through increasing service levels, rapid product fulfilment and expanding exclusive offerings.

Attractive Financial Profile: The transaction is expected to be accretive to Resideo non-GAAP EPS in the first full year of ownership, with favorable revenue growth and margin profile to ADI and Resideo as a whole. Transaction financing has been structured to allow Resideo to preserve financial flexibility for future strategic initiatives.

Transaction Details

The transaction is valued at approximately $1.4 billion, including forecasted net debt of Snap One at the closing of approximately $460 million. This represents a 7.4x multiple on Snap One’s Adjusted EBITDA for the twelve months ended December 29, 2023, as further adjusted by including Resideo’s projected annual run-rate synergies of $75 million.

The transaction is expected to be completed in the second half of 2024, and is subject to customary closing conditions, including receipt of applicable antitrust and other regulatory approvals. The transaction has been unanimously approved by the Boards of Directors of Resideo and Snap One. Private investment funds managed by Hellman & Friedman LLC, holding approximately 72% of the outstanding common shares of Snap One, have executed a written consent to approve the merger, thereby providing the required stockholder approval for the transaction.

Resideo intends to use proceeds from committed debt financing, cash on hand, and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice LLC (“CD&R”) to fund the transaction. Terms of the CD&R investment include a 7% coupon, payable in cash or payment-in-kind at Resideo’s option, and a conversion price of $26.92. CD&R brings a long track record of value creation through its investments and significant experience in the specialty distribution market. Effective upon the closing, CD&R will have the right to designate two members to the Board of Directors of Resideo.

Transaction Conference Call Information

Resideo will host a conference call at 8:00 a.m. Eastern Time on April 15, 2024, to discuss the transaction. Interested parties may join the call via https://investor.resideo.com/, where related materials will be posted before the call, or by phone at 646-968-2525 or 888-596-4144 with the conference ID: 7959274. A replay of the webcast will be available at https://investor.resideo.com/.

Resideo Preliminary First Quarter 2024 Financial Results

For the first quarter ended March 30, 2024, Resideo’s preliminary expectations are for revenue of approximately $1,485 million, compared with outlook of $1,460 million to $1,510 million and Adjusted EBITDA above the midpoint of outlook of $120 million to $140 million provided in the fourth quarter and full-year 2023 results press release dated February 13, 2024. Resideo intends to release first quarter 2024 financial results after the close of the New York Stock Exchange on Thursday, May 2, 2024, and host a webcasted conference call at 5 p.m. ET.

Advisors
Evercore and Raymond James & Associates, Inc. are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal counsel to Resideo. Bank of America and Morgan Stanley have provided committed financing for the transaction and are also acting as advisors to Resideo. Moelis & Company LLC and J.P. Morgan Securities LLC are serving as financial advisors to Snap One and have each provided a fairness opinion to Snap One’s board of directors. Simpson Thacher & Bartlett LLP is serving as Snap One’s legal counsel.

About Resideo
Resideo is a leading global manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions to over 150 million homes globally. Through our ADI Global Distribution business, we are also a leading wholesale distributor of professionally installed electronic security and life safety products for commercial and residential markets and serve a variety of adjacent product categories including audio visual, data communications, and smart home solutions. For more information about Resideo, please visit www.resideo.com.

About Snap One
As a leading distributor of smart-living technology, Snap One empowers its vast network of professional integrators to deliver entertainment, connectivity, automation, and security solutions to residential and commercial end users worldwide. Snap One distributes an expansive portfolio of proprietary and third-party products through its intuitive online portal and local branch network, blending the benefits of e-commerce with the convenience of same-day pickup. The Company provides software, award-winning support, and digital workflow tools to help its integrator partners build thriving and profitable businesses. Additional information about Snap One can be found at www.snapone.com.

About Clayton, Dubilier & Rice
Founded in 1978, CD&R is a leading private investment firm with a strategy of generating strong investment returns by building more robust and sustainable businesses through the combination of skilled investment experience and deep operating capabilities. In partnership with the management teams of its portfolio companies, CD&R takes a long-term view of value creation and emphasizes positive stewardship and impact. The firm invests in businesses that span a broad range of industries, including industrial, healthcare, consumer, technology and financial services end markets. CD&R is privately owned by its partners and has offices in New York and London. For more information, please visit www.cdr-inc.com and follow the firm’s activities through LinkedIn and @CDRBuilds on X/Twitter.

Residio Investors:
Jason Willey
Residio Vice President, Investor Relations
investorrelations@resideo.com

Adrienne Zimoulis
Residio Sr. Director of Communications
adrienne.zimoulis@resideo.com

Snap One:
Ashley Swenson
Senior Vice President, Marketing
ashley.swenson@snapone.com

Dana Gorman / Dan Scorpio
H/Advisors Abernathy
dana.gorman@h-advisors.global / dan.scorpio@h-advisors.global

Clayton, Dubilier & Rice Media:
Jon Selib
Clayton, Dubilier & Rice Media
jselib@cdr-inc.com

Use of Non-GAAP Financial Measures
This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measure, specifically Adjusted EBITDA, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. Non-GAAP Adjusted EBITDA should not be considered in isolation or as an alternative to results determined in accordance with U.S. GAAP. Resideo defines non-GAAP Adjusted EBITDA as Net Income as determined in accordance with U.S. GAAP, adjusted for the following items: provision for income taxes; depreciation and amortization expenses; interest expense, net; stock-based compensation expense; Honeywell reimbursement agreement non-cash expense; restructuring and impairment expenses; loss on the sale of assets, net, and foreign exchange transaction loss (income).

Resideo is unable to provide preliminary results for the comparable U.S. GAAP measure of Adjusted EBITDA for the first quarter 2024 without unreasonable efforts because the closing procedures for the first quarter of 2024 are not yet complete. Accordingly, Resideo is unable to provide a reconciliation from U.S. GAAP to non-GAAP Adjusted EBITDA without unreasonable effort. It is important to note that the amounts adjusted to the comparable U.S. GAAP measure may be material to Resideo’s first quarter 2024 reported results determined in accordance with U.S. GAAP.

This press release also includes a reference to Snap One’s Adjusted EBITDA, which is a non-GAAP financial measure. Snap One’s management believes that this non-GAAP financial measure provides useful information about the proposed transaction; however, it should not be considered as an alternative to U.S. GAAP net income (loss). A reconciliation between Snap One’s Adjusted EBITDA and U.S. GAAP net income (loss) for the annual period ended December 29, 2023, is provided in Snap One’s Annual Report filed with the SEC on Form 10-K on March 9, 2024.

Forward Looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results or performance of each company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) the ability of the conditions to the closing of the Snap One transaction being timely satisfied and the consummation of the transaction, (2) the ability of Snap One and/or Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (3) the ability of Snap One and/or Resideo to achieve the targeted amount of synergies and the related valuation implications described in this press release, (4) the accretive nature of the transaction to Resideo’s non-GAAP EPS in the first full year of ownership and the growth and margin profile of the combined businesses, (5) the ability to accelerate brand strategy as a result of the transaction, (6) the ability to integrate the Snap One business into Resideo and realize the anticipated strategic benefits of the transaction, including the anticipated operational and strategic benefits of the transaction, (7) actual Resideo results for the first quarter ended March 30, 2024 differing from the estimated financial results included in this press release, including due to the completion of our financial closing procedures, final adjustments and other developments that may arise between the date of this press release and the time that financial results for the first quarter of 2024 are finalized, (8) our expectation that the financing for the transaction will allow Resideo to maintain our existing credit ratings and preserve financial flexibility for future strategic initiatives, (9) the ability to recognize the expected savings from, and the timing and impact of, existing and anticipated cost reduction actions (10) the likelihood of continued success of our transformation programs and initiatives, and (11) the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in Resideo’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in Snap One’s Annual Report on Form 10-K for the fiscal year ended December 29, 2023 and such other periodic filings as each of Resideo and Snap One make from time to time with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release, and we caution investors not to place undue reliance on any such forward-looking statements

View original content: https://www.prnewswire.com/news-releases/resideo-to-acquire-snap-one-to-expand-presence-in-smart-living-products-and-distribution-302116276.html

SOURCE Resideo Technologies, Inc.

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BlackPeak Capital Invests €6.8M in the Software Development Company Bianor

BlackPeak Capital

BlackPeak Capital Invests €6.8M in the Software Development Company Bianor
15 april 2024
The investment aims to support Bianor’s current rapid organic growth and accelerate the company’s development through mergers and acquisitions in the region. This strategy aims to build on Bianor’s portfolio of services and competencies, as well as expand its geographic presence by reaching more customers in the US, Germany, Switzerland, the Nordics and MENA.

Private equity firm BlackPeak Capital invested €6.8M in Bianor Holding JSC (BSE:BNR), a software development company with more than 25-year experience implementing custom high-tech solutions for leading companies in the technology, media, telecommunications, and other industries. The investment is part of the company’s successful capital increase, which attracted 199 investors, including several institutional investors. The total number of subscribed shares, with an issue value of BGN 3.70 (€1.89), is 5 414 619 resulting in a capital raise of over €10M. This is the second successful capital raising by Bianor in less than 12 months.

    • The investment aims to support Bianor’s current rapid organic growth and accelerate the company’s development through mergers and acquisitions in the region. This strategy plans to build on Bianor’s portfolio of services and competencies, as well as expand its geographic presence by reaching more customers in the US, Germany, Austria, Switzerland, the UK, and elsewhere.

BlackPeak Capital’s investment ranks the fund among the top shareholders in Bianor. Bianor becomes the fifth company in the BlackPeak Southeast Europe Growth Equity Fund’s portfolio, managing funds of €126M.
 

Bianor was co-founded by Kosta Jordanov, an accomplished Bulgarian entrepreneur. One of his most successful projects was the launch of the premium digital streaming platform FITE (a Bianor spin-off), which in 2021 was sold to the US media company Triller in one of Bulgaria’s largest IT exits to date.

‘BlackPeak Capital is among the most successful regional investment funds. Having access to their significant experience with large acquisitions will be extremely valuable for Bianor’s strategy to complement the organic growth with expansion through acquisitions,’ said Kosta Jordanov, CEO of Bianor Holding JSC. ‘On behalf of the Bianor Group team, I would like to thank BlackPeak Capital and the rest of our shareholders for their trust and support on the road to making Bianor one of the largest and most successful software development companies in the region,’ added Jordanov.

‘We are very pleased to have the opportunity to support Kosta and the entire Bianor team in their ambitious expansion plans. Bianor is a company with a proven track record of growth through acquisitions, and we believe that recent trends in the IT industry will give advantages to larger companies that have the resources to compete on a global level based on higher added value,’ said Rosen Ivanov, Managing Partner at BlackPeak Capital. ‘This is the first time we are investing in a listed company, and we hope that our investment will contribute not only to the development of the business but also to the Bulgarian capital market as a whole,’ Ivanov added.

After the increase, Bianor Holding’s capitalization exceeds €25M at the current stock price. This places Bianor among the largest IT companies listed on the Bulgarian Stock Exchange.

 

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Litorina sells KungSängen to a consortium

Litorina
  • Litorina has signed an agreement to divest KungSängen, a leading direct-to-consumer bed specialist in Sweden, to a consortium with main financier being KAMJO Design & Hantverk.
  • KungSängen’s position in the market has been strengthened during Litorinas ownership by many improvements, such as modernizing the physical showrooms and improving e-commerce, integrated to enable true OMNI-channel experience.
  • KungSängen has been affected by several aspects related to the general economic development and downturn during last two years. The company has adapted to these changes and made the operations more resilient going forward, while continuing to deliver high-quality products and services to its customers.
  • The sale of KungSängen marks the 9th exit for the Litorina IV fund.
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Our investment in Mimo: Simplifying global payments and financial management for SMBs

Northzone

We are thrilled to announce our investment in Mimo, the platform simplifying global payments, cash flow, and financial management for SMBs and accountants. We’ve led this €18m round with participation from Cocoa Ventures, Seedcamp, Upfin VC, Fost Capital, and various angel investors including founders and early operators from Stripe, GoCardless, Wayflyer, and Anyfin.

Despite the fintech innovation of the past decades, when it comes to SMBs, payments and cashflow management continue to be a pain point. The processes are usually handled by a director on top of other duties or by a fractional CFO and involve a lot of manual work. Cashflow management is a timing problem and payments management a workflow problem. Beyond that, companies often fly blind, lacking real insights on their actual cash positions and future cashflows, which hampers their ability to properly plan ahead.

Over the years, we have spoken to multiple founders and fractional CFOs and repeatedly come across the time-consuming and fragmented processes SMBs face when managing money. The payer wants to pay as late as possible, while the payee wants to receive money as fast as possible. Without much negotiating power, small businesses are generally tight on cash; their options are to either take out expensive SME loans or pay their suppliers late to preserve and collect cash.

Today, SMBs often rely on a disjointed network of applications, including house banks, SaaS tools, and FX brokers, to manage their finances. Workflows are clunky and companies often keep track of their invoices in their email inbox, spreadsheets, or tools such as Xero. Furthermore, approvals between individuals go through a variety of touchpoints that are not purpose-built, creating unnecessary back-and-forths.

Over the past decade, we’ve seen a wave of neobanks and banks catered to SMB needs (including FINOM, also a Northzone portfolio company). While these banks replace old and unadapted incumbents, the administrative and cashflow challenges remain. In the UK, the average SME is owed a staggering estimated £22,000 in late payments every year.

Enter: Mimo. Founded by Henrik, Alexander, and Andreas, Mimo is solving this problem with their holistic platform that simplifies global payments, cash flow management, and financial management for SMBs and accountants.

By providing a suite of financial tools that bundles the features needed for SMBs to better understand and control their cash flow, Mimo enables businesses, accountants, and bookkeepers to manage finances through a single platform. The platform allows SMBs to pay suppliers with a click, access working capital, and get paid faster by customers, in any currency. Mimo’s credit offering minimises risk and optimises working capital, empowering businesses to send and receive payments on their own terms.

Our Partner, Jessica Schultz, adds, “Having known Henrik for years, we are very excited to partner up with him and his co-founders Alexander and Andreas, who previously worked together at iZettle and know well what it takes to build and win in the financial SMB market. Companies today face a real pain when it comes to coherently managing payments, cash flow, and financing. We believe Mimo’s vision for a true financial management platform aligns well with our thesis. The commercial success Mimo is already seeing today is a testament to the team’s drive and market edge.”

With this new funding, Mimo will accelerate product development, expand its platform, and continue its commercial success. If you’re an SMB or finance professional looking to streamline your financial processes, join the Mimo movement at mimohq.com.

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Mentha and SPC start partnership to accelerate International Growth Strategy

Mentha

Mentha has entered into an agreement with SPC Group to accelerate the company’s (international) growth. SPC specializes in protective coatings within the metal industry, serving a diverse and respected clientele in various sectors including energy, infrastructure, and industry. The Belgian company aims for faster international growth, both organically and through acquisitions, with the Netherlands as starting point. Besides international expansion, further expansion in Belgium remains on the agenda.

Since its establishment in 2021, SPC has become a successful specialist in industrial coating with nationwide coverage. Operating throughout Belgium with five strategic locations, the company has the capacity and expertise to serve customers, small and large, across various sectors, with various types of coatings, both on-site and at its own facilities.

With seven previous acquisitions, the service offering is significantly expanded, and the market position has been strengthened. Now is the time for the next phase, where SPC’s solid growth track is accelerated with Mentha’s support. International expansion is prioritized, with the Netherlands as initial focus.

Mentha has acquired a majority stake, while the founders and broader management team remain shareholders and responsible for the daily management and further expansion of SPC.

Anthony Demaerel and Yves de Mild, founders of SPC, are excited about the collaboration with Mentha. Demaerel said “We are very excited to continue our growth journey with Mentha in the coming years. With SPC, we have taken significant steps in Belgium in recent years and aim to actively expand our footprint in the Netherlands in the coming period.” De Mild added, “In addition to sector experience and a broad network in the Netherlands, Mentha shares the same no-nonsense approach and entrepreneurial culture as SPC.”

Ruben Stove, Mentha: “We are impressed by the expertise that SPC brings to the table, as well as the way they contribute to the professionalization of the conservation market. Regulations and associated compliance requirements are becoming increasingly strict, where scale and expertise only work in favor of players like SPC. In addition to the existing business, we see numerous growth opportunities that we want to realize together with the entire SPC team in the coming period.”

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Greenhouse Projects in Scandinavia

NPM Capital

Scandinavia has the potential to become a significant market for vegetable production in greenhouses. NPM participant KUBO, a leading supplier of high-tech greenhouses, has partnered with WA3RM to establish 200 hectares of modern greenhouses powered by residual heat from industrial processes. This collaboration aims to transform Scandinavia into a hub for vegetable production by utilizing large-scale industrial projects to develop greenhouses using waste heat. These initiatives are expected to significantly improve self-sufficiency in vegetables for Sweden and Scandinavia, potentially even turning them into net exporters.

Greenhouse Projects in Scandinavia

WA3RM has developed a circular model that makes it profitable to grow vegetables in colder climates by using residual heat from industrial production. Together with KUBO, WA3RM is working on a first greenhouse project in Sweden, covering approximately twenty hectares for tomato production, compared to the current forty hectares of greenhouse area for tomato production in the country. The growing demand for sustainably produced plant-based food drives this initiative, addressing global issues around food production such as water shortages and fossil fuel emissions. By partnering with KUBO, WA3RM gains access to decades of valuable expertise in building advanced greenhouses, ensuring a sustainable and efficient solution for vegetable cultivation.

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Clariti Secures US$18M Investment from Vistara Growth to Drive Digital Transformation in Government

Vistara Growth

Vancouver, April 10, 2024 – Vistara Growth, a provider of flexible growth capital to software and technology-enabled services companies, has invested US$18M in Vancouver-based Clariti Cloud Inc. (“Clariti”), the premier SaaS provider for permitting and licensing solutions to state, provincial and local governments in the U.S. and Canada.

The Company’s software allows local governments to improve productivity and service quality to citizens by streamlining and automating processes. Their fully digital end-to-end permitting platform takes an application through to issuance, enforcement, and management. Customers choose Clariti for their cloud capabilities, highly configurable platform with innovative features, and excellent security and scalability. Clariti’s software transforms permitting and licensing from slow, frustrating in-person and paper processes to modern, streamlined digital experiences, generating additional revenue for governments and vastly improving the constituent experience.

“Permitting and licensing are primary revenue drivers for local governments and Clariti ensures that their customers can deliver modern solutions to their citizens,” says Neil Kenley, Principal at Vistara Growth. “We have been able to see first-hand the benefits that Clariti can provide customers through the modernization of legacy systems. Clariti drives significant improvements in speed and ease of use for both government employees and the citizens who use their platform – all while reducing the overall cost of ownership for the provider.”

Across government technology, there’s been a growing need to modernize and upgrade legacy and on-premises systems. A software refresh cycle that picked up speed with the need for cloud deployments during the COVID-19 Pandemic, has continued to accelerate as governments increasingly recognize the power of SaaS solutions that benefit from ongoing development and new features.

Proceeds from the growth financing will primarily be used to expand Clariti’s go-to-market teams, build on relationships with system integrators and support an increased number of implementations as Clariti has continued to see meaningful new opportunities in the market. Additionally, the financing will further enable the development of additional features and support the integration of Camino, an innovative permitting technology provider acquired by Clariti in 2023.

Clariti Co-CEO, Cyrus Symoom commented “We are witnessing accelerated demand for digital government services, underscoring the critical need for innovative solutions to meet evolving citizen needs. In light of this, we are truly excited to partner with Vistara as we embark on the next phase of our company’s growth journey. Their reputation for creativity, thoughtfulness, and emphasis on a relationship-oriented approach seamlessly compliments our organizational values and strategic goals. This partnership marks a significant step forward in our commitment to innovation and client satisfaction, propelling us towards sustained growth and success.”

About Clariti

Clariti’s government software helps North America’s largest and fastest-growing communities deliver exceptional community development, permitting, and licensing experiences online. Founded in 2008, Clariti is built as an alternative to code-heavy, non-configurable systems that create technology barriers for governments to meet their community’s evolving needs. Governments should be able to dictate how their software works. To us, that means providing our customers with a system that’s maintained with clicks, not code, to relieve pressure on technical resources and better support citizens and staff. For further information about Clariti, please visit www.claritisoftware.com.

About Vistara Growth

Vistara Growth provides highly flexible growth debt and equity solutions to leading technology companies across North America. Founded, managed, and funded by seasoned technology finance and operating executives, “Vistara” (Sanskrit for “expansion”) is focused on enabling growth for the ambitious entrepreneurs we invest in, our investors, our people, and the communities we operate in.  For more information, visit vistaragrowth.com

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ECI invests in travel management company, TAG

ECI

We’re pleased to announce our investment in TAG, the market leading high-touch travel management company to the entertainment and corporate markets. The deal provides an exit for Apiary Capital who have supported TAG since 2018.

TAG was founded in 1988 and now employs c.450 people across the globe. As an award-winning travel and event management company, TAG has redefined the standards for travel in the entertainment industry with specialists providing bespoke, high-end service to some of the biggest names in music, film and TV production as well as top C-suite and corporate executives.

 

Today is a fantastic milestone in our evolution, as we proudly announce the investment by ECI. With our entertainment and corporate clientele and the incredible TAG team, we are very confident that this partnership will deliver a host of new benefits and opportunities as we’re poised to elevate our standards even further, ensuring unparalleled service for our clients as we continue to shape the future of entertainment and high-end corporate travel management.”

Jens Penny

CEO, TAG

“We are excited to be partnering with TAG and leveraging ECI’s experience of investing in the travel industry to propel this global leader to new heights in the global entertainment and corporate travel markets. We are looking forward to working with the management team to continue innovating TAG’s service model, investing in technology and supporting the next stage of growth in its global footprint.”

George Moss

Partner at ECI

ECI announce close of latest fund

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Nordstjernan invests in Oden Technologies

Nordstjernan

Nordstjernan has invested in Oden Technologies (“Oden”), a leading data and AI software company servicing the manufacturing industry. Oden, with its main market in the United States, was founded in 2014 by Willem Sundblad and Peter Brand. Recognized as a leading niche player on the market for Industrial Analytics and AI, Oden has experienced high demand and adoption for its recently launched machine learning operator centric product, Process AI. The product creates prescriptive process recommendations to optimize operator runs in real-time.

In a market significantly impacted by digital transformation, Oden has the potential to enhance efficiency, deliver real-time decision making, and mitigate the risks associated with high operator turnover. This is particularly crucial for the manufacturing industry as workforce issues are continuously a primary challenge. The investment will support continued growth via customer expansion, continued investment in Process AI and the roll-out of additional AI products built for use by the machine operators.

 

The Series B investment round, led by Nordstjernan Growth, equals USD 28.5 million. Other new investors are Flat Capital, Recurring Capital Partners as well as Oden customer INX International Inc. Almost all existing investors participated in this round, including Atomico and EQT Ventures.

 

”We look forward to working together with Nordstjernan to continue to develop, grow and accelerate innovation at Oden Technologies as we enter a new phase and stage of maturity”, says Willem Sundblad, CEO and co-founder of Oden Technologies.

 

”Oden is a uniquely positioned and innovative company in a large growing market where we see considerable potential. We look forward to supporting the company in the long term”, says Torbjörn Folkesson, Head of Nordstjernan Growth.

 

The investment is made through Nordstjernan’s growth initiative, Nordstjernan Growth, and is the fifth holding in the Growth portfolio. As part of this round Nordstjernan becomes the largest owner and will be represented in Oden’s board.

 

Torbjörn Folkesson
Head of Nordstjernan Growth

 

Questions handled by:

 

Kajsa Andersson, Communications Manager Nordstjernan
Mobile: +46 72 230 87 65
E-mail: kajsa.andersson@nordstjernan.se

 

 

Nordstjernan is predominantly owned by the Axel and Margaret Ax:son Johnson Foundations. Since its establishment in 1890, Nordstjernan has owned and developed hundreds of companies in a range of industries. Today, Nordstjernan has investments in more than 20 companies in five sectors. Together, these companies have sales of SEK 120 billion and employ more than 50,000 people. Read more on www.nordstjernan.se.

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Press release (PDF)

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Guesty Raises $130M To Accelerate Global Expansion

KKR

Global investment firm KKR leading Series F funding round, with participation from Inovia Capital
–  Investment to drive continued global expansion through both acquisitions and organic growth, including broadening the enterprise-level offering to accommodate medium-term rentals, corporate housing, and fully-serviced stays

NEW YORK, April 10, 2024 /PRNewswire/ — Guesty, the leading property management software platform for the short-term rental (“STR”) and hospitality industry, today announced a $130M Series F funding round led by leading global investment firm KKR. Inovia Capital, together with existing investors Apax Funds, BDT & MSD Partners and Sixth Street, also joined the round, extending their support following Guesty’s significant expansion and sustained growth. This new round of funding will support continued development of Guesty’s best-in-class enterprise-level platform for property managers and drive market consolidation to grow the company’s global footprint. Stephen Shanley, Partner at KKR and Head of Tech Growth in Europe; Lauriane Requena, Principal at KKR Tech Growth, and Dennis Kavelman, Inovia Capital Partner, join Guesty’s Board of Directors following this investment.

The STR industry is growing rapidly and is currently valued at $277B. The significant shift in the way customers choose to live, work, socialize and travel, has led to growth in demand for STRs outpacing hotels in every quarter since 2022. To meet these consumer demands and the growth and complexity in the number of properties offered as short-term rentals, property managers increasingly utilize end-to-end property management systems, like Guesty.

Operating in over 80 countries, Guesty is the most comprehensive and easy-to-use platform on the market today. Guesty’s platform provides both enterprise and SMB property managers as well as individual hosts with the necessary tools to manage the entire rental journey, solving some of their biggest pain points. The company’s best-in-class software platform helps property managers advertise and manage their vacation or short-term rental properties, delivering unrivaled guest experiences through a highly intuitive user experience and open API capabilities.

Guesty’s new funding will be used for expansion across the US, enhancing vacation rental offerings with innovative features. Jonah Mandel joins as VP of Sales to lead the expansion. Additionally, Guesty will invest in catering to the European market, focusing on France, Germany, and Spain, while reinforcing its presence in Australia with customer tailored developments.

“Guesty is a best-in-class operator and one of the clear leaders in the property management sector. There has been a significant shift towards the short- term rental market and this investment will support the company as it continues to meet that growing customer need,” said Stephen Shanley, Partner and Head of Europe Tech Growth at KKR. Lauriane Requena, Principal with KKR Tech Growth added. “Guesty’s product is unique in its ability to offer the tools customers require throughout the management process, giving them an incredible platform to continue to expand. We’re pleased to have invested in the business to support this next phase of growth, as they look to the significant opportunity to grow the business internationally.

‘We have been thoroughly impressed with Guesty’s track record in consolidating the STR segment,” says Inovia Partner Dennis Kavelman. ”We are excited to further invest in this category as its importance in the travel sector continues to grow, and we are confident in Guesty’s position as one of the clear software leaders in this area.”

“Guesty has enjoyed astonishing five-fold growth during the last three years. We’re delighted that this has been recognized by top-tier investors KKR and Inovia, and we’re excited to have them onboard alongside our other investors as we enter our next growth period,” says Amiad Soto, Guesty’s CEO & Co-Founder. “The surge in those seeking short-term rentals continues and our platform remains at the vanguard of the industry. As we embark on creating the industry’s first intelligent property management platform, we’ll continue to develop its functionality and AI capabilities to deliver first-to-market features and best-in-class support for our customers.”

KKR is making the investment in Guesty primarily through its Next Generation Technology Growth Fund III, a fund dedicated to growth equity investment opportunities in the technology space. KKR has established a proven track record of supporting technology-focused growth companies, having invested over $21.6 billion in related investments since 2014 and built a dedicated global team of more than 35 investment professionals with deep technology growth equity expertise. The firm has executed several transactions as part of its tech growth strategy, including DarkTrace, KnowBe4, o9 Solutions, Onestream, OutSystems, NetSPI and Restaurant365.

About Guesty

Guesty is the all-in-one platform for short-term rental businesses to automate and optimize every aspect of their operations. With purpose-built technology, industry-wide expertise, and an R&D team of 250+ engineers, Guesty ensures that hospitality businesses can streamline and achieve growth while delivering the best value to guests. With a complete suite of features and 200+ industry partners, including major booking OTAs like Airbnb, Vrbo, booking.com, Tripadvisor, Expedia, Hopper, Google Travel, Home & Villas by Marriot, and many more, Guesty is transforming the short-term rental industry with innovative solutions. Today, Guesty has 15 offices and 750+ team members across the globe. For more information, visit guesty.com.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About Inovia Capital

Inovia Capital is a venture capital firm that partners with founders to build impactful and enduring global companies. The team leverages an operator-led mindset to provide founders with multi-stage support, mentorship, and access to a worldwide network. Inovia manages over US$2.2B with operations in Montreal, Toronto, Calgary, Bay Area, and London. For more information, visit inovia.vc.

Media Contact:

Diane McKaye, Si14 Global Communications
GuestyPR@si14global.com

KKR
FGS Global
Alastair Elwen/ Jack Shelley
KKR-Lon@FGSGlobal.com

 

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