This is Zack Fuss. Today we are breaking down the largest privately-owned software business in Europe, Visma. 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. Founded in Oslo in 1996, Visma grew organically and via acquisition of 178 companies.

We're joined by Nic Humphries, the Senior Partner and Executive Chairman of Hg Capital, 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.

As part of this conversation, we discussed the business history, growth, and recent leadership transition. Please enjoy this breakdown of Visma.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Show Notes

(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