25-10-2016 07:30

Gimv acquires a 40% stake in MEGA International, a leading global software and consulting services company, which helps companies improve their business and IT agility to innovate in the digital world. MEGA’s offering has been recognized for years by customers and prominent analysts in enterprise architecture (EA), IT portfolio management (ITPM), business process analysis (BPA), and governance, risk, and compliance (GRC) markets. The other shareholders are Lucio de Risi (Founder/CEO) and the management-team of MEGA International. Over the coming years, the emphasis will be placed on the acceleration of the growth in the US, the ongoing SaaS[1]-transformation, and in extending the audience of its product offering.

MEGA International (www.mega.com) is a global software firm helping companies manage enterprise complexity by giving them an interactive view of their operations. In today’s fast-paced, and disruptive business environment, organizations must be forward-looking and agile to adapt to rapidly-changing markets, technologies, and regulatory requirements. MEGA International’s integrated set of software solutions, called HOPEX, and its consulting services, enables IT departments and/or executives gain the visibility and information they need to make the right choices for effective governance and for striking the right balance between capacity for innovation, cost optimization, and risk management when it comes to their IT strategies and digital transformation programs. MEGA has a global footprint with 8 offices around the globe (Paris – HQ, London, Berlin, Milan, Boston, Mexico, Casablanca, and Singapore). Moreover, it works with 25 business partners around the world. The company’s customers are mostly big, complex – often global – companies and government organizations, e.g. Fannie Mae, Crédit Agricole, UniCredit, Nissan, Eurocontrol, United States Department of Agriculture, SBB CFF, P&G, Gilead or Colruyt. Last year, MEGA International realized a turnover of EUR 43 million with almost 300 employees.

Gimv’s investment provides partial liquidity to the initial shareholders while preparing the company for the next phase in its development. It is the ambition in the coming 3 years’ time (i) to foster the growth among its existing clients and by signing up new customers, (ii) to establish an excellent track record in its already initiated transition to a SaaS offering, and (iii) to apply its software tools to even more applications towards a broader audience.

Gimv Smart Industries platform has a focus on innovative companies with strong technology expertise and headquarters in France, Benelux and DACH regions. During the last years, the team has built a successful track record within the sector of ICT companies, engineered products and advanced manufacturing.

Tom Van de Voorde, Partner in Gimv’s Smart Industries platform: “Globalisation, digitalisation, consolidation and regulation are driving the need for large corporations to have a clear view on and the ability to manage their IT systems. MEGA’s leadership team together with its employees have the vision and the long experience in creating value for their customers by serving their needs and increasing their competitive positioning. We are truly delighted to join this partnership.”

Lucio de Risi, CEO and Founder of MEGA International: “I am very enthusiastic about this partnership and believe Gimv can bring a lot of value through their software expertise and experience in accompanying ambitious entrepreneurs in their international growth”.

Viking Venture invests in the Norwegian company Xait AS. The company has developed XaitPorter, a document collaboration and production tool used by major corporations globally.

Xait AS was founded by CEO Owe Lie-Bjelland and CFO Arnt Jørund Andreassen in 2000 and has grown to be a major player in the market for production of complex documents. The company has implemented a cloud based offering with a subscription based business model. XaitPorter is used by corporations when producing complex documents such as tenders, proposals, reports, governing documents and project documentation. The software supports both the production and formatting dimension as well as the project management, review and approval dimension of document production.

“We are impressed by the quality of the team, the product and the customers they have attracted. With more than 30% growth and 90% recurring revenue, this company is ideally positioned for further international expansion,” commented, Eivind Bergsmyr partner in Viking Venture and chairman of Xait.

Adelis Equity Partners (“Adelis”) has acquired majority stakes in IT Relation, Front-data and DSI-NEXT. The companies’ management teams continue as minority shareholders in the new setup.

The combined businesses will be the largest provider of IT outsourcing services to small businesses in Denmark with around DKK 300 million in revenues, 200 employees and offices in Herning, Århus, Odense and Copenhagen.

”With the combination of IT Relation, Front-data and DSI-NEXT, we have made four investments and three add-on acquisitions in Denmark since establishing Adelis less than three years ago. We are impressed by the three companies’ niche focus on small businesses, their consistent growth, and their strong cultures that make them leaders in this industry,” said Steffen Thomsen of Adelis.

“This acquisition creates a strong platform for growth. We have experience with similar companies where we have focused on finding the best platform in terms of a scalable business model combined with a strong company culture and a skilled management team,” Joel Russ of Adelis added.

The three businesses will continue activities under their own brands as part of the IT Relation Front-data Group and have access to capital and knowledge that will make it possible to accelerate their positive business development.

“We are pleased and proud to be able to work with Adelis given their significant experience building strong businesses through consolidation. Furthermore, they can contribute with their insights from previous technology investments, including within hosting. We are looking forward to the cooperation,” said Henrik Kastbjerg, CEO of IT Relation.

”I am delighted that we have created a strong foundation to deliver top-class service to our customers and to attract and retain the best employees,” said Jens Søgaard, founder of Front-data.

In connection with the transaction, Henrik Kastbjerg will become Group CEO of IT Relation Front-data. Jens Søgaard will become a member of the board, which will be chaired by former CEO of KMD, Lars Monrad-Gylling.

Nykredit has provided debt financing for the transaction. Clearwater International advised IT Relation on the transaction.

Further details concerning the transaction will not be published.

For further information:

Steffen Thomsen, Adelis Equity Partners, +45 40 28 34 09, steffen.thomsen@adelisequity.com

Joel Russ, Adelis Equity Partners, +46 73 543 90 68, joel.russ@adelisequity.com

Henrik Kastbjerg, IT Relation, +45 20 69 67 00, hvk@itrelation.dk

Jens Søgaard, Front-data and DSI-NEXT, +45 27 63 85 00, js@frontdata.dk

 About IT Relation

IT Relation was founded in 2003 and within a short period, the company has become one of the leading suppliers of it outsourcing services in Denmark. IT Relation currently has 115 employees, with offices in Herning and outside Copenhagen. For more information, please visit www.itrelation.dk .

About Front-data and DSI-NEXT

Front-data and DSI-NEXT have been part of JS Holding where the two companies have built up leading positions within each of their markets, Front-data within IT Outsourcing/Hosting and DSI-NEXT within Sharepoint, .net development and business intelligence solutions. In combination, Front-data and DSI-NEXT have 95 employees and offices in Århus, Odense and Copenhagen. Please visit www.frontdata.dk and www.dsinext.dk .

About Adelis Equity Partners

Adelis is an active investor and partner in creating value at small and medium sized Nordic companies. Adelis was founded in 2012 with the goal of building the leading lower middle market investment firm in the Nordics. Adelis’ team members have extensive Private Equity experience, have invested in over 50 companies and have been members of the board in more than 50 middle market companies. Our current fund size is approximately €400 million. For more information please visit www.adelisequity.com.