to boost international growth; deal to be completed in early 2010, CEO says.
Source: mergermarket.com
e-conomic, a private Danish online accounting system for small and medium-sized businesses, is keen to discuss offers from financial and strategic investors, chief executive officer Torben Frigaard Rasmussen said.
In an attempt to expand the business in North and Central Europe, Rasmussen is interested in taking investors on board and sell a minority shareholding for at least EUR 3m-4m. A few private equity funds and venture capitalists have already expressed their interest in backing the company, he said.
Negotiations will kick off in Q4 for a few months. Rasmussen plans to finalize a deal at the beginning of 2010 with a view of carrying out bolt-on acquisitions in nearby geographies like Germany and the Netherlands. He is open to holding talks to both private equity firms and trade investors although he noted that sector players are mostly suffering because of the economic downturn and they are unlikely to submit attractive offers.
"We are looking for smart money rather than a simple cash injection," he said. "An ideal partner should add value to the business and help us enhance our international growth. We are more than happy to be approached by financial investors with some market experience," he noted.
Rasmussen was appointed in 2008 with the specific task of boosting international sales. He is currently monitoring several EU markets for opportunistic buys. "We will start expanding the business over the next 12 months. Acquisitions could occur in North or Central Europe but we are also considering options in Spain and Southern Europe," he said.
According to Rasmussen, the company is well-funded and cash positive. It could decide to launch own operations in several countries across Europe once an A-round is completed. "We generate cash rather than burning it as most of our direct competitors," he said. Potential suitors should be willing to drive the company's expansion within the SME market as there is no current plan of diversifying the client base
E-conomic expects a turnover of between DKK 43m-45m (GBP 5.3m) in 2009 with a 40%-45% boost in sales on 2008, the CEO said. The company reported revenues of GBP 3.8m at the end of last year showing an increase of 60% on 2007.
E-conomic's founders Anders Bjomsbo and Jacob Wandt control almost 100% shares with no angel investors onboard. They are both actively involved in the business. Wandt acts as a chairman while Bjomsbo was recently appointed managing director of E-conomic's UK operations.
The company has around 25%-30% market share in Denmark and it is the leading player in proving online accounting software solutions for the SME market in Scandinavia. It also operates in the UK from his office in Reading.
E-conomic was set up in 2002 in Copenhagen. It employs an overall 55 staff. The company serves 20,000 end users and around 3,000 accountants. The CEO aims to hit 100,000 customers by 2013.
Rasmussen has run several companies in the computer software space. He is currently serving as chairman of the board of DMS Online, Come&Stay, Vinens Verden and IFAD.
Source:
mergermarket