e-conomic International A/S (‘e-conomic’), one of Europe’s leading Software as a Service (‘SaaS’) accounting and SME solution providers, backed by private equity investor HgCapital, announces that its holding company agreed to acquire a majority stake in Gothenburg-based SaaS accounting firm, SpeedLedger.
With 55 employees and a customer base of more than 25,000 companies, SpeedLedger is a Swedish leader in web-based accounting for micro businesses and the second largest company in Sweden’s web-based accounting sector. SpeedLedger has won several growth awards including DI Gasell for four consecutive years, and earned places in the Deloitte Technology Fast 50 (Sweden) and the Deloitte Technology Fast 500 (EMEA). SpeedLedger, which will continue to operate as an independent entity, will work closely with e-conomic to offer a full range of proprietary and third party solutions through a network of partners in the Swedish market.
The investment in SpeedLedger represents another step in e-conomic’s strategy to further internationalize the business, following e-conomic’s recent joint venture with leading Spanish accountancy network, CE Consulting Empresarial. The deal strengthens the company’s European leadership in SaaS accounting and the combination of SpeedLedger and e-conomic will create one of the largest SaaS solution providers for SMEs in the Swedish market.
HgCapital, who acquired e-conomic in July 2013, worked closely with both companies to provide investment for this transaction. HgCapital will continue to provide additional investment capital to support e-conomic’s ongoing international expansion.
e-conomic has an existing presence in the Swedish market as well as in its Danish home market, and many other countries across Europe, including Norway, Germany and Spain. The company has over 200 employees now serving more than 100,000 customers using the core online accounting system and more than 250,000 registered users, who make use of Debitoor (www.debitoor.com), an online, light, ‘freemium’ invoicing and accounting solution targeted towards freelancers and sole practitioners. Additionally, e-conomic offers to its customers through its network of more than 150 partners a wide range of third party SME software applications, including CRM and payroll.
e-conomic and Speedledger are well positioned to take advantage of the SME sector’s increasing trend towards SaaS accounting, which, according to Research house IDC, is expected to represent 50% of the accounting market over the next few years.
“The combination of e-conomic and SpeedLedger is the perfect match to support our ambitions to become the market leader in Sweden within the next few years. Joining forces with SpeedLedger is an important part of our expansion plans in Sweden and internationally. SpeedLedger is a very professional corporation comprised of a management team with profound market expertise. The company is experiencing continued growth and offers a product that differentiates itself from the market and e-conomic’s two core products. A combination of the two businesses over time allows for great future synergies and provides wider choice for customers.”Mogens Elsberg, CEO of e-conomic
“We have followed e-conomic’s impressive growth for many years and are excited to now be part of the same group. There will be great potential synergies between our companies and a fantastic opportunity to conquer new markets with combined resources, strong financial backing from HgCapital and the market’s best product portfolio.”Magnus Nilselid, CEO and founder of SpeedLedger
“This combination strengthens e-conomic’s position as a European leader and one of the top two global players in SaaS for SMEs. HgCapital has 20 years of experience backing software and SaaS businesses focused on SME customers and more than €3 billion of available capital to invest – we will use both our experience and capital to support Mogens and his exceptional team to build a global champion for SME’s.”Nic Humphries, Managing Partner and Head of TMT at HgCapital