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.
Media contacts:
Lars Terney, Partner
NC Advisory A/S, advisor to the Nordic Capital Funds
E-mail: lars.terney@nordiccapital.com
Tel: + 45 33 44 77 50
Katarina Janerud, Communications Manager
NC Advisory AB, advisor to the Nordic Capital Funds
E-mail: katarina.janerud@nordiccapital.com
Tel: + 46 8 440 50 69
Leif Vestergaard, CEO
EG A/S
E-mail: leif.vestergaard@eg.dk
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