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The CFOs best friend valued at NOK 845 million:
House of Control aims for listing on Oslo Børs
Oslo, October 6, 2020 – House of Control has seen an annual organic growth of 30 per cent since 2016 on sales of cloud-based software for CFOs with a SaaS model. The solutions give the clients overview of legal and financial details and liabilities on contracts and assets. The company is now raising NOK 350 million for new acquisitions and is aiming for listing on Merkur Market.
Founder and CEO, Lasse Sten, says both the company and the solutions are built on the vision to become the CFO’s best friend.
“The platform gives full control of contracts, assets and liabilities. Both the basic solution and the modules are developed in close collaboration with CFOs. When identifying needs and wishes across several companies, we develop new functionality which is easy to use and adds value in their work. The result is 1,200 subscribers across the Nordic region. We are now expanding beyond the Nordics, with an even better offering,” says Sten.
Last fiscal year, the subscription revenues represented 94 per cent of the company’s total revenues, and by August this year, the total portfolio passed NOK 132 million.
The Nordic market for House of Control’s solutions amounts to NOK 9 billion annually, and with an increase in subcontracting in both private and public sectors, House of Control expects a market growth larger than GDP growth. The company made its first acquisition in July 2020, when DinERP, a developer and supplier of applications for IFS users, became part of the solutions platform.
“Our further organic growth is already fully financed. We are now raising NOK 350 million to finance future acquisitions. The goal is an ARR (annual recurring revenues) portfolio of NOK 500 million by 2025, solely driven by organic growth. Effects from acquisitions will come on top of this. We want to invite others to join our growth journey by planning a listing on Merkur Market shortly,” says Sten.
“We have built a proactive and highly scalable sales organization. Through acquisitions, we will have an even broader product range. We are convinced this will both increase our reach to new customers and boost upsell among existing customers,” says Sten.
ABG Sundal Collier and Pareto Securities are executing a private placement of in total up to NOK 650 million, of which NOK 350 million is in new shares and NOK 300 million represents a sale of shares by existing shareholders. Five high-quality international and domestic anchor investors with a track record of investments in technology companies are already in place, subscribing for NOK 325 million. The anchor investors are Luxor Capital Group, Berenberg Bank, Consensus Asset Management, Handelsbanken Fonder and DNB Asset Management. The price is set at NOK 21.00 per share, which implies a pre-money valuation of NOK 845 million.
The plan is to list the company on Merkur Market on Oslo Børs in week 43, subject to the necessary approvals from the Oslo Stock Exchange.
House of Control was established by Lasse Sten in 2006. Viking Venture acquired a majority stake in 2015. The company has since followed an active growth strategy. House of Control has delivered 30 per cent organic growth annually since 2016 by delivering cloud-based solutions (SaaS) through an attractive subscription model.
Common for its customers is an extensive portfolio of contracts, where the complexity increases with company size and number of employees. In a hectic work week, the CFO needs a fast and simp le way to retrieve details on for example the size of liabilities, contracts’ expiration dates, details on renewals, potential savings, and other valuable documentation related to liabilities and assets.
“Among new customers we often experience that contracts are signed by employees all over the organization and that no one has the full picture. As a rule of thumb, a third of other operational costs are related to running contracts, and 10 per cent of these can be eliminated by means of improved control. As an example, the solution became highly relevant in March, when customers had an immediate need to identify risks and opportunities as well as to cut costs,” says Sten.
Among the most important modules is the solution for IFRS 16 compliance. With just a few clicks, the CFO can make complex calculations and retrieve complete reports and details related to leasing contracts. Over a couple of years, revenues from the IFRS 16 module increased to approximately 20 per cent of revenues, and it is currently used by 150 customers.
ABG Sundal Collier ASA and Pareto Securities AS are engaged as financial advisors to the Company and as Joint Lead Managers and Joint Bookrunners in connection with the Private Placement and Listing. Advokatfirmaet CLP DA is acting as legal advisor to House of Control, while Advokatfirmaet Thommessen AS is acting as legal advisor to the Managers. Corporate Communications AS is acting as communication advisor to the Company.
For additional information, please contact:
Lasse Sten, CEO, phone + 47 91 88 21 25 or Carl Fabian Flaaten, CFO, phone +47 90 04 31 84
About House of Control
House of Control develops and sells SaaS (Software as a Service) solutions. The primary solution, Complete Control, is used to manage contracts and assets, including the contracts’ financial implications on accounting, budgeting and reporting. Complete Control has several modules and additions, including compliance with IFRS 16 requirements, HR management, digital signatures and price index adjustments. The value for the user comes through cutting costs, saving time and reducing business risk and dependency on key personnel. Founded in 2006 by Lasse Sten, the company today counts more than 95 employees based in Oslo (Høvik), Trondheim, Stockholm and Copenhagen.
About the placement and listing on Merkur Market
- Contemplated private placement of up to NOK 650 million in new and existing shares in the House of Control
- The Private Placement will comprise an offer of new shares raising gross proceeds to the Company of NOK 350 million and a sale of existing shares of up to NOK 300 million from a consortium of the selling shareholders in the Company
- The price per share in the Private Placement has been set to NOK 21.00
- Pre-money equity value of the Company of NOK 845 million based on the 40,248,200 shares currently outstanding in the Company
- Five cornerstone investors, have undertaken to subscribe for and be allocated shares for NOK 325 million as follows:
- Luxor Capital Group NOK 150 million
- Berenberg Bank NOK 50 million
- Consensus Asset Management NOK 50 million
- Handelsbanken Fonder NOK 50 million
- DNB Asset Management NOK 25 million
- Bookbuilding commencing 5 October 2020 at 09:00 CEST and closing on 6 October 2020 at 16:30 CEST
- First day of trading on Merkur Market is expected to be shortly after completion of the Private Placement, and is currently anticipated to be in the week commencing 19 October 2020
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