Clearwater International advises managed hosting and IT outsourcing company, SoftCom Solutions on its sale to PE-backed IT Relation

Clearwater International has advised the owners of SoftCom Solutions (SoftCom) on its sale to Danish provider of managed hosting and IT outsourcing IT Relation, backed by Nordic private equity investment group, Adelis Equity. Adelis Equity thereby continues its consolidation of the Danish IT outsourcing market in the wake of its recent acquisition of IT Relation, Front-data and DSI-Next.

Founded in 1996 by Allan Thorvaldsen and Diego D’ambra, SoftCom initially started out as an IT consultancy firm. In 2006, Jakob Knutssøn became co-owner and CEO, and the company started offering subscription-based on premise services, followed by a roll-out of a combined hosting & service concept to both existing and new customers. Today, more than 3,500 users are connected to SoftCom’s service desk that operates as a single point of contact for its customers. SoftCom has shown impressive revenue growth at a CAGR of 24% with a significantly high level of recurring income.

IT Relation is a leading provider of IT services including hosting, support, development and strategy in Denmark, with a yearly revenue of more than €40m. In 2016, Clearwater International advised IT Relation on its sale to Adelis Equity, after which the business merged with the IT outsourcing company, Front-data and the IT development and application company DSI-Next, with the ambition of creating an even stronger platform for future growth under the two business units – Managed Services and Solutions.

With the addition of SoftCom, IT Relation hopes to further benefit from economies of scale and create even more value for money for its customers.

The Clearwater International team was led by Partner Per Surland supported by Senior Associate Casper Norre and Associate Casper Bech.

“Despite impressive growth rates, it became apparent that our ambition to grow even further and faster, could not be achieved through organic growth alone. With IT Relation we have found a partner who shares not only our ambitious growth plans, but also our passion and drive and we look forward to the interesting opportunities that lie ahead.
It has been a pleasure working with Clearwater International and the team were professional, service minded and dedicated. Their strong track record within the Danish IT sector – particularly in the hosting industry, meant that they possessed extensive knowledge about the market and had strong relationships with key players in the industry. They assisted us in transforming complex financial figures and analyses into well-structured and appetising presentation material. I would not think twice about choosing them as financial advisor again.”

Jakob Knutssøn, CEO and Co-Owner, SoftCom Solutions

“We see a strong strategic fit between IT Relation’s extensive product portfolio and Softcom Solutions’ loyal customer base and strong position in the capital area of Denmark. Together, the companies have a strong platform for future growth and we are confident that this partnership will add significant value and synergies to both companies. This transaction once again confirms the current consolidation trend in a competitive market with a continuously increasing demand for more complex services and competencies. Prognoses show no signs of declining growth in the sector hence we do expect to see the current high level of M&A activity in the hosting industry to continue throughout 2017.”

Per Surland, Partner, Clearwater International