After 15 years of strong organic growth, the Nordic region’s leading company in commercial value management is making its first acquisition. With DinERP joining the team, House of Control strengthens technology development and prepares for European expansion. In 2020, the new company will have NOK 130 million in annual recurring revenues (ARR).
House of Control has annual license revenues of NOK 110 million from the SaaS solution Complete Control. Here, users register their contracts, assets and liabilities – a need that increases with the scope of outsourcing and the number of subcontractors. The product has hit a nerve in the market, and the company has had a strong growth over several years in a niche they have largely defined and had for themselves.
– After 15 years of strong and purely organic growth, we are now making our first acquisition. In the next few years, we will make more transactions to strengthen the company. This is part of a new and ambitious strategy for expansion in existing and new markets. NOK 130 million in ARR makes us one of the largest SaaS companies in the Nordic region. Now, our ambition is to grow just as strongly in Europe, says CEO Lasse Sten of House of Control.
Two companies, one target group: the CFO
DinERP develops software that simplifies and improves companies’ use of the global ERP system IFS. It includes solutions for e-commerce, invoice management and – not to say the least – apps used by employees outside the finance department where the work tasks create transactions in the ERP system. The company has a turnover of more than NOK 30 million, with the main emphasis on recurring subscription revenues.
– The CFO is the most important target group for both companies, with products that connects the business activities to the enterprise resource planning (ERP) systems. The most obvious synergy effects will come from the combination of greater financial strength as well as more rapid technology development and commercialization, says Sten.
Lars Morten Nygaard, CEO of DinERP, says that this is a transaction that has matured over a period of time:
– Both companies have Viking Venture as large owners. In their unique ownership environment, we have become increasingly convinced that we will both succeed faster and better by merging the two teams, says Nygaard.
Significant added value for customers and owners
Erik Fjellvær Hagen, Chairman of the Board of House of Control, who is also managing partner in Viking Venture, has high expectations of the new company:
– The world’s finance departments are in the middle of extensive digitalization, driven by demands for efficiency as well as better performance. This trend opens a promising market for tools that support and expand the value a business gets from using the ERP system. The potential is exemplified by House of Control having its strongest growth ever in June, in the midst of the Covid19 pandemic.
– DinERP and House of Control will be an organization that is excellently positioned to gain ground in the market. The product range is expanded and the pace of innovation gets a new gear. When this is combined with the organization’s «track record» in commercialization, we are confident that the new company will create significantly greater value for customers and owners – in both existing and new markets, says Fjellvær Hagen.
The transaction is carried out by the shareholders in DinERP receiving settlement in shares in House of Control. Lasse Sten and Erik Fjellvær Hagen both continue in their roles as CEO and chairman of the board respectively.
CEO Lasse Sten, tel. 91 88 21 25, e-mail firstname.lastname@example.org
Chairman of the Board Erik Fjellvær Hagen, tel. +45 92 02 24 30, e-mail email@example.com
About House of Control
House of Control is a Norwegian SaaS company (Software as a Service). The most important product is Complete Control, which is a self-developed solution for contract management and financial management of contracts. Better overview, dependence on key personnel and reduced costs are key values that customers achieve by using the solution. Complete Control is a tool with broader functionality than what in the industry is called Contract Lifecycle Management software, and includes functionality for better financial management (budgeting, forecasts and reports) independent of what ERP system the customer uses. House of Control defines Complete Control as Commercial Value Management software. The specialized IFRS 16 solution for calculating and reporting the balance sheet values and depreciation of leases is a concrete example of the software’s value for better financial management. House of Control was started by Lasse Sten in 2006, and in 2015 Viking Venture bought the majority of the shares. Sten is still CEO of House of Control Group AS, which in 2019 received a total turnover of NOK 100 million from the offices in Sweden, Denmark and Norway – up 27 million from 2018.
DinERP was started in 2008 by three former employees of IFS in Norway. The focus has been on delivering usability for powerful but very complex ERP systems such as IFS Applications. Since then, the company has grown to over 30 employees in Trondheim and Oslo. DinERP has customers in both the public and private sectors, in a variety of industries, across three continents. The products help businesses save time and money by optimizing their existing IFS Applications for non-expert users – often around 80 percent of the total workforce. In 2019, DinERP had total sales of around NOK 33 million. Viking Venture owns approx. 47 percent of the company.