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Hg to take majority stake in Denmark's IT Relation
Hg Capital has agreed to invest in IT Relation, a Danish supplier of managed IT services to small and medium sized enterprises, it announced on Thursday.
The London-listed firm said it would acquire a majority stake in IT Relation from Adelis Equity Partners, with the closing of the transaction remaining subject to regulatory approval.
Terms of the transaction were not disclosed.
It said that IT Relation, founded in 2003, provided services which allowed SMEs to move their IT infrastructure and operations into 'the cloud', as well as providing end-user support and consulting as part of a full-service IT offering.
The company had more than 450 employees supporting "thousands" of customers and "tens of thousands" of users in Denmark, and globally.
Hg said the investment was consistent with its focus on SME technology services in Europe, with other activity in the sector including investments in Zitcom in 2015 and DADA in 2017, both providers of online hosting services to SMEs.
The board said it would support the management team to build a "clear industry champion" based on IT Relation's customer service and operating platform.
"Henrik Kastbjerg and the IT Relation management team have built an exceptional business addressing the need for SMEs to operate their mission-critical IT in the cloud," said Hg partner Nick Jordan and principal Jonas Samlin in a joint statement.
"We look forward to partnering with the business in the next phase of growth in Denmark and internationally."
Henrik Kastbjerg, CEO of IT Relation, said it had been a "great journey" with Adelis, and now the company was "very excited" about the next phase with Hg.
"Hg has a proven track record of investing in and developing tech and software companies and can support our further growth in Denmark as well as internationally."