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Visma, a Norway-based software provider backed by PE firm Hg, has acquired Moj eRa?un, a leading Croatian SaaS business tools provider, for €27 million. Despite the change of ownership, Moj eRa?un will remain an independent company, keeping its existing management and brand.?

The Buyer: Norway-based Visma , backed by Hg , a private equity firm with over $70 billion in funds under management, has expanded into Croatia, following recent?acquisitions in Hungary, Romania, Poland, and Western Europe. Now comprising over 180 companies in 33 countries, Visma serves 1.8 million customers across Europe and Latin America. Its cloud software simplifies core business tasks such as accounting, payroll, and resource planning, allowing clients to focus on growth and value-driven activities.?

The Target: Established in 2014, moj-eRa?un has become Croatia's leading provider of SaaS business tools, focusing on digitizing administrative tasks. Its flagship product offers e-Invoicing and document management solutions that seamlessly integrate with over 400 ERP systems, positioning the company well ahead of Croatia's mandatory B2B invoicing set for 2025. In 2023, Moj eRa?un reported revenues of €6 million and a profit of €1.2 million, supported by a team of over 70 employees.?

Our Remarks:?

• Private Equity fuels growth. Visma announced in December plans to raise €4 billion, secured the funds by May, and has already acquired over 10 companies this year. In the past seven years, the Norwegian company has completed more than 200 acquisitions, including in Central and Eastern Europe, with targets in Hungary, Romania, Croatia, and Poland.?

• Core SaaS providers & Market Leaders are targeted. Visma prioritizes acquiring SaaS companies focused on administrative functions like accounting, payroll, HR, and ERP. These companies are often deeply embedded in customers' business processes, providing stable recurring revenue and low churn rates. Moj eRa?un, being a market leader in Croatia, also meets the PE’s criteria of targeting top 2-3 players in a segment.?

• Timing is key. Moj eRa?un's integration with over 400 ERP systems positions it as a preferred choice ahead of Croatia's mandatory B2B invoicing in 2025. This is expected to ignite a significant growth, enabling the buyer to capitalize on this momentum, leading to a - possibly - higher valuation and a more favorable deal for the owners.?

• Notable valuation. With €6 million in revenue and €1.3 million EBITDA, Moj eRa?un is a moderately-sized company. However, it was acquired for €27 million, reflecting high revenue and EBITDA multiples of 4.5x and 20.77x. This premium is driven by favorable deal timing, anticipated revenue growth, and a presumably strong ratio of recurring revenue due to deep integration into customers' processes.?

• A lesser-known buyer approach. Visma builds a network of entrepreneurial companies, not a centralized organization. Each company maintains business autonomy and go-to-market freedom, driving their growth, while benefiting from shared support in technology, people, and business development across the group. Many think that when a buyer acquires a company, they will choose to merge it, completely integrate the target, however this is not always the case. PE firms typically prefer not to manage the company themselves and instead seek independent, professional management – maybe add other management members. There are also buyers who prefer not to disrupt the current operations and are content with the company continuing as it is.?

• European expansion. According to the CEO of Visma Merete Hverven, the company will continue acquiring market leaders in CEE as well in the coming years: "We are excited to enter the Croatian market by welcoming Moj eRa?un to the Visma family, marking yet another milestone in our European expansion. As we continue to grow and expand the Visma family to new markets, we also reinforce our commitment to advancing digital solutions across Europe.”??

• You better keep Visma on your watchlist if you consider selling your business providing invoicing or accounting services in the CEE region??

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Takeaway for today? It's crucial to consider what type of buyer and post-deal operation would be most beneficial for your company. There is no one-size-fits-all approach to selling a company or choosing the right investor profile. If you're interested in learning more about potential buyer profiles and their M&A strategies, or if you want to connect with suited investors, seeking a trusted advisor is essential.?

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Absolvo specializes in M&A and growth financing backed by close to 200 completed deals in the CEE region. If you consider a sale or a transaction with a private equity in the near future, we are dedicated to support you to achieve your goals and accelerate your success with our expertise and network.?

References:??

https://infobiz.fina.hr/tvrtka/elektronicki-racuni-d-o-o/OIB-42889250808?

https://app.dealroom.co/companies/visma/?

https://mergermarket.ionanalytics.com/content/1003870329?