Business Breakdowns
Episode 145 Visma: Mission Critical European Software
Business Breakdowns

Episode 145: Visma: Mission Critical European Software

Business Breakdowns

Episode 145

Visma: Mission Critical European Software

Nic Humphries is a Senior Partner and Executive Chairman at HgCapital. We cover the secular trends underpinning Visma's growth, how it differentiates itself from competitors on product and pricing, and why it's a superb example of the advantages of long-term investing.

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(00:00:00) - Welcome to Business Breakdowns

(00:02:44) - First question) - Introducing Visma and its operations

(00:10:51) - Identifying Visma's unique attributes in the payroll sector

(00:13:32) - Assessing Visma's current scale and potential for growth

(00:17:45) - Considering the shift to a cloud-native approach

(00:20:49) - Reflecting on key lessons from past errors

(00:23:19) - Strategies for scaling the business effectively

(00:28:15) - Weighing cash reinvestment against shareholder distributions

(00:31:39) - Øystein Moan's influence within the company

(00:33:06) - Deciding the right time for an IPO

(00:39:23) - Analyzing the risks facing Visma

(00:41:22) - Exploring Visma's competitive advantages

 

Visma: Mission Critical European Software

Introduction

Zack
My name is Zack Fuss, and today, we are breaking down the largest privately owned software business in Europe, Visma. To break down the business, we're joined by Nic Humphries. Nic is the senior partner and Executive Chairman of HgCapital, which is one of the leading software investors in Europe.

Nic is intimately familiar with Visma, given Hg owns over 50% of the business and has been invested for over 17 years. Hg initially invested as part of a take-private transaction in 2006 at just a $450 million valuation, and based upon the latest recap completed in December, today, the business is valued at over $21 billion.

Visma is a software company with over 15,000 employees, offering accounting, payroll and HR software products for customers across the Nordic, Benelux and Baltic regions. In 2022, it generated more than EUR 2 billion in revenue and today is doing over EUR 2.3 billion in sales. The business produces over EUR 600 million in EBITDA and continues to grow.

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