Case study: Zitcom
The Danish Zitcom group has built up a highly differentiated hosting business. We caught up with CEO Stefan Rosenlund.
In 2015 HgCapital invested in Zitcom and ScanNet, two leading Danish hosting and cloud solutions providers. The investment was made from HgCapital’s Mercury Fund, which focuses on growth buyouts in the technology sector across Europe. Clearwater International acted as exclusive financial advisors to Zitcom on the sale.
Zitcom, which operates under the Wannafind, UnoEuro, Curanet and Zitcom brands, has built up a highly differentiated hosting business addressing attractive growth segments of the cloud solutions market. Today it provides cloud services to more than 100,000 business and private customers, while ScanNet has a further 13,000 customers.
Like so many hosting companies today, Zitcom’s roots are in the dotcom era at the turn of the millennium. As co-founder and CEO Stefan Rosenlund explains: “A group of us first got together while still at school and the business started life in a basement. Our original plan was to launch an online search engine so we went out and bought some servers and an internet connection. But we then realised that there was some interesting stuff going on in the hosting industry so we changed our approach.
“I would love to say that we had a fantastic business plan, but to be honest this started out as a hobby. Looking back today there were two key things that made it all possible for us. Firstly, it was the relaxing of rules around the release of domain names. And secondly, it was the fact that we arrived just after the dotcom bubble happened. That meant funding was out of the question for us so we had to build the company from the bottom up.”
Zitcom would go on to build up a subscription revenue business with a mix of consumers and small businesses as customers.
“We just loved what we were doing and still do to this day. That is our DNA. We are very passionate about what we do and passionate about what we offer our customers.”
Clearwater International advises leading hosting business in Denmark on acquisition by HgCapital
Clearwater International Denmark acted as financial advisor in the sale of Zitcom to UK-based HgCapital.
Zitcom was founded in 2000 and operates under the Wannafind, UnoEuro, Curanet and Zitcom brands. The business has demonstrated 15 years of consistent revenue growth to more than 50,000 business and private customers in Denmark.
HgCapital’s objective is to support the Zitcom management team in building a clear champion in the Danish market, based on Zitcom’s excellent reputation for service delivery, unique operating platform and attractive multi-brand strategy.