Nordic capital fund EQT and the Danish Labour Market Supplementary Fund ATP, have acquired Danish IT company KMD for DKK 2bn (USD 340m), writes financial daily newspaper Børsen. KMD develops IT solutions for Danish municipalities, but is increasingly adding private companies and state organisations to its list of customers. KMD employs 3,000 people and generated revenues of DKK 3.2bn (USD 540m) in 2007.
EQT will have a 85% stake of EQT, while ATP takes the remaining equity interest. The DKK 2bn acquisition will be funded with approx. 50% equity and 50% debt. Financing has been provided by five of Denmark’s leading financial institutions: Danske Bank, Nordea, Nykredit, FIH and ATP.
The sales process has being going on for some time, with 40-50 buyers initially showing an interest. In the last stage however, the Nordic region's two largest capital funds EQT and Nordic Capital competed on making the deal, pressing the price up. Erik Fabrin, the chairman of KL, the Danish National Association of Municipalities, which owned KMD, says:
"In the sales process we have focused on finding the buyer which would be the most optimal match for the municipalities, the company and its staff. I think we have succeeded. With EQT and ATP as owners, the company and its staff will have significantly better opportunities for growing and to gain new market shares outside the municipality world."
EQT and ATP are convinced that revenue and earnings in KMD can be boosted. Peter Korsholm, partner in EQT says: "KMD has a unique market position, which we will try to expand and strengthen over the coming years. We look forward to collaborating with KMD's management, which has a strong vision for the continued development of the company."