HØVIK, NORWAY: House of Control Group AS has entered into an agreement to acquire Egreement AB in Sweden, a news release said.
The acquisition significantly strengthens House of Control’s SaaS-offering within contract workflow and digital signature.
The acquisition complements House of Control’s existing solutions for – among others – contract management, authorization, procurement, and supplier communication.
Egreement has annual recurring revenue (ARR) of SEK 12.7 million from more than 300 customers and 1,600 users across all types of industries, mainly in Sweden. The transaction values Egreement at 3.5 times ARR on a debt-free basis, which will be settled in cash upon closing, in addition to an earn-out element capped at SEK 20 million depending on future financial development.
“The digitization of the company’s finance functions is accelerating, and House of Control aims to have a complete ecosystem of solutions for the CFO and the finance department. Expanding our product suite with Egreement’s solutions will simplify the digital signing and contract authoring workflows for both existing and new customers,” says CEO Lasse Sten in House of Control.
“We see a huge potential for our offerings in both private and public companies. Access to House of Control’s unique sales machinery and commercial development capabilities will enable us to realize our international growth ambitions faster than on a stand-alone basis. We are really looking forward to leverage this opportunity,” says CEO Patrick Wilkinson in Egreement AB.
The acquisition is in line with House of Control’s growth strategy to combine strong organic growth and attractive acquisitions. It follows the acquisitions of DinERP and Effectplan last year and Business Analyze in the second quarter this year. Upon completion of the Egreement acquisition the company will have approximately 2,000 customers with more than 275,000 end-users in 66 countries.
House of Control develops SaaS (Software as a Service) solutions. These are digital tools that the CFO can easily apply to improve the performance of the finance department and – ultimately – the whole company. The CFO toolkit contributes to at least four important tasks: Cut costs, save time, reduce risk, and improve compliance – all key ingredients of a better-working finance department.
Private and public enterprises use the software to manage contracts and assets, comply with IFRS 16 requirements, communicate with suppliers, and organize procurement. House of Control’s strong revenue growth is supported by a unique salesforce, and approximately 95 percent of sales are annual recurring revenues. House of Control had ARR of NOK 169 million per the end of the second quarter 2021.