Mercell buys the Visma company for just over 2 billion – E24

The technology company Mercell, which was listed on the Oslo Stock Exchange this summer, through a wholly-owned subsidiary acquired the Norwegian and Swedish operations of Visma Commerce, which operates services related to public procurement.

The purchase price is SEK 2 billion, which at the current exchange rate corresponds to NOK 21 billion. Payment will be made in cash.

The acquisition will be financed by a private placement of NOK 1.3 billion and a SEK 1.1 billion bond loan.

Mercell had a market value of just under NKK 3 billion at close of business on Tuesday.

Mercell, which was launched in 1999, is based in Oslo. They provide software for electronic public procurement and tendering.

It will be a leader in public procurement

The combined company will form one of the leading online public procurement providers in Europe, according to the stock exchange announcement. Annual Underwriting Revenue (ARR) is estimated at NOK 534 million as of the third quarter of 2020.

Mercell CEO Terje Wibe says that through this acquisition, Mercell is establishing a strong position in the Swedish market and a stronger platform for European expansion.

– We are two very complementary companies in terms of clients, products and presence in the market, and we will provide extra value to the client by expanding our scope and distribution. We are significantly strengthening our offering of cross-border procurement processes, and increased economies of scale mean that we can further accelerate product innovation and development, Wibe says in the report.

The transaction is expected to be completed during the fourth quarter of 2020.

Action jump

Mercell’s share price ended at NOK 10.31 on Tuesday and has risen since listing. By comparison, the company raised fresh money at a subscription price of NOK 6.75 before listing on the Oslo Stock Exchange. A total of NOK 450 million was raised through a private placement, and some of the existing shareholders were sold at the same time.

The technology company has invested heavily through its own growth and acquisitions in public procurement in Europe. Today’s announcement comes after the company announced this summer that they will be embarking on an acquisition cruise.