STOCKHOLM, Aug 21 (Reuters) - European software investor Hg plans to invest about $2 billion in Norwegian software company Visma, which is valued at about $12.2 billion, a source familiar with the matter said on Friday.
Private equity firms Warburg Pincus and TPG also plan to invest hundreds of millions of dollars to buy less than 10% in Visma, the source added on condition of anonymity.
The portfolio reshuffle will mean that funds run by Hg, which manages more than $30 billion in investments, retain a majority interest in the software provider that operates in the Nordic, Benelux and Baltic regions.
Representatives for Hg, Warburg and TPG declined to comment. A Visma spokeswoman said the company has not issued any shares as part of the transaction. A statement from the company confirmed the $12.2 billion valuation, but made no comment on Hg’s planned investment.
Business software companies have fared relatively well during the COVID-19 pandemic, as companies seek to automate processes and manage critical business functions while staff work remotely.
Visma, which has more than 11,000 employees, provides business accounting, resource-planning, payroll and human resources products to more than 1 million business customers.
It was valued at $5.3 billion in 2017 when buyout group KKR sold its stake in the company for $1.81 billion to a group of investors that included Singaporean wealth fund GIC.
Existing investors include Canada Pension Plan Investment Board, Intermediate Capital Group, General Atlantic and the company’s management.
Private equity firm, Montagu, which earlier had a 5.8% stake in Visma, sold its entire holding in Friday's transaction here, which was first reported by Sky News.
Hg, which has owned stake in Visma after leading its delisting from the Oslo Stock Exchange in 2006, would own 54% of the firm, the majority of which would be held by its Saturn fund. (Reporting by Supantha Mukherjee in Stockholm; Editing by Douglas Busvine and Barbara Lewis)
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