Euronext Enhances SaaS Capabilities with Admincontrol Deal

Significant Expansion of Euronext's SaaS Offerings

Euronext is making headlines with its recent strategic acquisition of Admincontrol, a prominent provider of governance and secure collaboration Software as a Service (SaaS) solutions. This move represents a key milestone in Euronext's journey to enhance its SaaS portfolio in the Nordics and the UK.

Strategic Objective Behind the Acquisition

As outlined in its strategic plan titled "Innovate for Growth 2027," Euronext has made it clear that scaling up its SaaS offerings is a priority. The acquisition of Admincontrol is a decisive step in accelerating this ambition. By integrating Admincontrol's robust solutions into its operations, Euronext aims to broaden its capabilities and more than double the size of its governance offerings, thereby addressing critical workflows for its clients.

Admincontrol's Background and Offerings

Founded in 2005 and based in Oslo, Admincontrol specializes in governance software that has become essential for over 4,000 clients, supporting 200,000 users. Their platform facilitates effective decision-making and management, essential for today's fast-paced corporate environments. The company has experienced remarkable double-digit growth annually, achieving NOK 452 million (€39 million) in revenues and a notable NOK 200 million in EBITDA (€17 million), showcasing a healthy 44% EBITDA margin.

Strengthening Euronext's Market Position

This acquisition will significantly bolster Euronext's Corporate Solutions division, which has been pivotal in establishing a strong presence in the Nordic region. With an already extensive network through previous acquisitions, including Euronext Oslo Børs and Nord Pool, Admincontrol will further enhance Euronext's standing in the market. The strategic fit of Admincontrol's offerings makes this acquisition a wise choice for Euronext as it seeks new client acquisition and cross-selling opportunities.

Financial Details of the Acquisition

The financial details of the acquisition reveal that Euronext will purchase Admincontrol for NOK 4,650 million (€398 million), a transaction that meets its capital allocation policy requirements. Euronext anticipates a return on capital employed (ROCE) that will exceed the weighted average cost of capital (WACC) within three to five years post-acquisition. Regulatory approvals are still pending, with completion expected in the second quarter of 2025.

Reactions from Company Leadership

Stéphane Boujnah, CEO of Euronext N.V., expressed enthusiasm about the acquisition, emphasizing that it aligns perfectly with the company’s growth strategy. He stated that this move not only enhances Euronext's range of subscription-based revenue but also positions the company as a leader in the governance SaaS sector. Furthermore, he praised Admincontrol's solutions and the potential for greater market penetration in the Nordics.

Support from Former Owners

Merete Hverven, the CEO of Visma, noted that Admincontrol has thrived under Visma's ownership and looks forward to seeing the company blossom further under Euronext. This sentiment was echoed by Møyfrid Øygard, the CEO of Admincontrol, who highlighted the transformation the company has experienced and the exciting future ahead as they align with Euronext’s broader strategy.

Euronext's Corporate Solutions and Overall Impact

Euronext Corporate Solutions has established itself as a leading provider of SaaS and service offerings for governance, compliance, and investor relations across Europe. By acquiring Admincontrol, Euronext not only enhances its capabilities but also showcases its commitment to providing innovative solutions to its clients. With over 5,000 clients in its portfolio, Euronext has already demonstrated strong growth, generating €50 million in revenue in 2024.

Frequently Asked Questions

What is the significance of the Admincontrol acquisition for Euronext?

The acquisition will significantly expand Euronext's SaaS offerings, enhancing its governance solutions and market presence in the Nordic region.

Who are the key leaders involved in this acquisition?

Stéphane Boujnah, CEO of Euronext, and Møyfrid Øygard, CEO of Admincontrol, have both expressed excitement about the strategic fit and future growth opportunities.

How will this acquisition affect Euronext's financials?

The acquisition is expected to enhance subscription-based revenue and achieve significant ROCE exceeding WACC within a few years post-acquisition.

When is the expected completion date of the acquisition?

The transaction is anticipated to be completed by the second quarter of 2025, pending regulatory approvals.

What are Admincontrol's main offerings?

Admincontrol provides a governance and secure collaboration platform that includes board management and transaction management solutions for effective decision-making.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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