JUNE 25 2013
Nordic Capital Fund VII ("Nordic Capital") has announced a definitive agreement to sell EG A/S ("EG") to Axcel IV. Under Nordic Capital's ownership, EG has significantly developed its business and footprint by strengthening its operations and actively participating in the consolidation of the market. Today, the company is one of Scandinavia's leading IT software and service providers and is well positioned for continued growth.
During Nordic Capital's five year ownership period, EG has developed ahead of the initial strategic plan, driven by a clear focus on offering market leading solutions for selected industry verticals, organisational transformation, operational effectiveness, geographical expansion and IT service market consolidation. In addition, since 2009, EG has completed 14 add-on acquisitions in Denmark, Norway and Sweden.
"We are very pleased with and proud of the strong development and performance of EG during Nordic Capital's ownership. The ambition for Nordic Capital when acquiring EG in 2008 was to enable and support the long-term growth of the company and consolidation of the industry. The company has significantly strengthened its market position and is well placed to continue to develop and grow under the new ownership. We would like to thank the management team and EG employees for their contribution and dedicated work during Nordic Capital's ownership,"says Lars Terney, Chairman of EG A/S and Partner, NC Advisory A/S, advisor to the Nordic Capital funds.
EG is a Danish headquartered IT software and services provider with a market leading position within industry specific IT solutions, implementation and consultancy services in the Scandinavian market. The company's position in Denmark, Norway and Sweden is based upon close relationships with customers, deep industry knowledge and value adding IT solutions. The company is amongst the world's leading Microsoft Dynamics ERP partners.
Despite the financial crisis, EG has grown revenue by close to DKK 500 mn and EBITDA by more than DKK 100 mn during the Nordic Capital ownership period. In 2012, the company achieved its best-ever result in the group's 35 years history with revenue of DKK 1,502 mn and normalised EBITDA of DKK 163 mn and the company is poised to make 2013 another record year.
"EG has been on a fantastic journey over the last five years in strong partnership with the Board and Nordic Capital as owners. A clear strategy and relentless execution has enabled us to become the Scandinavian market leader within selected industry specific IT-solutions. With a large customer base, good traction in the business, and most of our 2015 strategy achieved already in 2012, we have built a solid platform for further growth. The exit by Nordic Capital is very well timed as EG is about to roll out our 2017-strategy plan and we will be able to continue our development on a path familiar to both our customers and employees", says Leif Vestergaard, CEO of EG A/S.
The parties have agreed not to disclose the transaction value. The acquisition is subject to approval by the competition authorities.
Nordic Capital was advised by Carnegie Bank and Accura law firm.
Lars Terney, Partner
NC Advisory A/S, advisor to the Nordic Capital Funds
Tel: + 45 33 44 77 50
Katarina Janerud, Communications Manager
NC Advisory AB, advisor to the Nordic Capital Funds
Tel: + 46 8 440 50 69
Leif Vestergaard, CEO
Tel: + 45 20 60 97 48
About Nordic Capital
Nordic Capital private equity funds have invested in large and medium sized companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. Nordic Capital Funds' investors are principally international institutions. Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. Nordic Capital Funds are based in Jersey, Channel Islands and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germany and the UK. Additional information about Nordic Capital is available at www.nordiccapital.com
About EG A/S
EG is a Scandinavian IT software and services company, specialised in developing and providing industry specific IT solutions. With over 30 years of experience, EG has a unique portfolio of solutions based on standard platforms and technologies from Microsoft, SAP, HP, IBM and others, as well as proprietary software products. EG is one of Europe's leading suppliers of Microsoft Dynamics ERP solutions. In addition to ERP solutions, EG offers services within management consulting, business intelligence, CRM, knowledge sharing, and all types of support, service, IT infrastructure and outsourcing. EG is actively participating in the market consolidation with 14 acquisitions since 2009. EG Group has 1,300 employees working from more than 20 locations throughout Scandinavia. EG is headquartered in Denmark. Additional information about EG is available athttp://global.eg.dk/press