Proact IT Group and CAG Group could well be the next targets in the private equity backed roll-up of the Nordic hosting industry
Copenhagen, 27 August 2019
Over the past few years we have seen a consolidation wave within the Nordic hosting services industry, backed by both Nordic and international private equity funds.
Based on our ongoing analysis and tracking of all ~750 private equity owned companies in the Nordics and more than2,000 M&A transactions in the last 12 months, we believe the trend will continue and that both Proact IT Group and CAGGroup, which trade on the Stockholm stock exchange, are likely delisting targets.
*15 of the larger Nordic hosting rms are private equity-owned and actively pursue a "buy-and-build" strategy*
*We have seen 282 Nordic M&A transactions within software and IT services in the last 12 months alone*
*Both Iver (EQT), Conscia (Nordic Capital), and Canadian CGI recently stated they are pursing Nordic acquisitions*
*The fierce competition in the private M&A market is driving up valuations (median EV/EBITDA of 8.6x LTM)*
*With Proactive and CAG currently trading at an EV/EBITDA of 6.5x and 7.3x, respectively, they look cheap in comparison*
About the data:
The analyst team at Nordic Knowledge Partners has systematically been tracking M&A transactions and intelligenceacross the Nordics since January 2018, including monitoring of all private equity owned rms and private equity related transactions.
Earlier in 2019 both Bloomberg, Børsen, Dagens Næringsliv, Berlingske Tidende, and E24 published large articles based exclusively on data from Nordic Knowledge Partners and interviews with the CEO.
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