EQT X, a fund under EQT Private Equity, has agreed to invest in two Nordic software companies, HVD Group (Hantverksdata) and Next (Next One Technology), to strengthen their foothold in the tradespeople and construction industry.
This sector is significant globally but has seen limited digital transformation, affecting productivity growth.
HVD Group, based in Sweden, serves over 10,000 customers across the Nordics and Germany. The company provides cloud-based field service management and enterprise resource planning software tailored for installation and service professions like electricians and plumbers.
Their platform focuses on reducing administrative time and error risks, offering functionalities such as order, project, and asset management.
Next, also originating from Sweden, complements HVD Group’s offerings with its cloud-based software for construction firms, supporting approximately 2,500 customers primarily in the Nordics.
Its services include project management software with features for order and resource management, financials, and quality control, aimed at enhancing planning, execution, and collaboration in construction projects.
Ali Farahani, a Partner at EQT Private Equity, highlighted the investment’s potential, noting the strengths of HVD Group and Next as leading platforms in a significant global vertical. EQT aims to leverage its software experience to support the companies’ continued growth.
Anders Böös, Chairperson of HVD Group, and Joel Russ, Partner at Adelis, expressed confidence in the robustness and attractiveness of the tradespeople software sector. They anticipate continued growth and digitalization benefits for the industry.
Mikael Viotti, CEO of HVD Group, emphasized the company’s recent technological advancements and customer reception, looking forward to the partnership with Next and EQT. Johan Jarskog, CEO of Next, also remarked on the complementary nature of the two companies, both in product and culture.
The transactions are expected to close in February 2024. Legal advisory was provided by Vinge for EQT, White & Case for Adelis, and Houlihan Lokey for Monterro, the previous owner of Next.
Following these transactions, EQT X’s investment level is anticipated to be between 30-35 percent of the target fund size, accounting for closed, signed investments, and announced public offers.