REUTERS: Private equity firm EQT has bought 63 percent of the shares in Swedish enterprise software maker IFS, and will make a mandatory bid for the remaining shares in the coming weeks, it said yesterday.
EQT bought the shares for 362.50 crowns each, which will also be the bid level for the remaining shares, just one crown higher than IFS closing price on Friday. The bid level values IFS at 9.05 billion Swedish crowns (US $ 1.04 billion) “We have followed this company for a long time, we think it is a good company, and we think we have a really good plan for value creation that we plan to implement,” EQT partner Per Franzen told Reuters.
IFS, which has strong positions in areas such as oil and gas, aerospace and defence and field services management, had revenues of 2.4 billion crowns in the first nine months of 2015, with an operating profit (EBIT) of 180 million.
Among the things EQT will be looking at is investments in product development, the sales force, IFS’ network of partners, and a higher focus on acquisitions in targeted areas.
IFS shares, which have risen more than 20 percent since mid-October, rose a further 1.7 percent to 367.50 crowns in early trading yesterday.
“The fact that owners representing 63 percent of capital and 68 percent of shares have chosen to sell their shares to us at this level means that it per definition is an attractive offer,” Franzen said.
“And I assume the remaining owners will reach the same conclusion.”