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Hg is evaluating the merits of a flotation of €19bn software company Visma, as the private equity group approaches two decades of ownership of the Norwegian business.
Visma, which provides small and medium-sized businesses with accounting and payroll software, was acquired by Hg in 2006 for an estimated $500mn and employs almost 16,000 people, with an annual revenue of €2.4bn.
Hg is discussing a potential initial public offering of the business as soon as 2026, with listing options to include London, Amsterdam and Oslo, according to several people familiar with the matter.
A flotation would return Visma to the public markets after Hg led its delisting from the Oslo Stock Exchange in 2006. The private equity group has been the lead or minority investor in the company ever since.
Hg and its co-investors at present own about 70 per cent of the company, alongside several minority shareholders including the Singaporean wealth fund GIC, the US private equity group TPG, the UK’s ICG and others.
Visma had previously considered pursuing an IPO as early as 2023, the people said, but ultimately opted for a private share sale to investors including Jane Street and Altaroc in a transaction valuing it at €19bn.
Hg is now planning for Visma’s next liquidity event, the people said, with options including a flotation or share sales to other private investors. Hg and Visma declined to comment, and the people stressed no decision had yet been made.
The talks come after Visma reported a 17 per cent rise in third-quarter revenues to €694mn, and earnings before interest, taxes, depreciation and amortisation of €256mn, an increase of 26 per cent year on year. The bulk of its revenues come from the Nordic region, though its operations span 33 countries.
A Visma IPO would be among the largest in Europe in recent years and would take place in a market that is still recovering from a prolonged slowdown.
Amid a dearth of IPOs, other buyout groups such as EQT have explored private stock sales for portfolio companies. The Swedish investment group is weighing plans to sell a minority stake in its €15bn software group IFS in which Hg is also a minority shareholder.
Hg has used a similar approach for other companies such as its cloud software provider Access Group, which it owns alongside TA Associates. Access Group announced in June 2022 that it had received further funding at a £9.2bn valuation after Hg first invested as a minority shareholder in 2018 at about a £1bn valuation.