EQS Group-News: SoftwareONE Holding AG / Key word(s): IPO
SoftwareONE announces plans to IPO on SIX Swiss Exchange
2019-09-30 / 07:00
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Media Release
*SoftwareONE announces plans to IPO on SIX Swiss Exchange*
STANS, Switzerland I 30 September 2019 - SoftwareONE Holding AG, a leading
and fast-growing global provider of end-to-end software and cloud technology
solutions, today announced its intention to conduct an initial public
offering and list its shares on SIX Swiss Exchange in the fourth quarter of
2019, subject to market conditions.
- Founded in 2000 by Daniel von Stockar and Patrick Winter (??? 2018),
SoftwareONE is a leading global provider of software and cloud technology
solutions with capabilities across the value chain, helping around 65,000
business customers[1] design and implement their technology strategy, buy
the right software and cloud solutions at the right price, and manage and
optimize their software and cloud estates.
- With its end-to-end suite of solutions, SoftwareONE addresses the
commercial, technological and digital transformation challenges businesses
face amid the growing complexity of technology and the rising strategic
significance of digitalization.
- SoftwareONE is a partner of choice for many of the world's largest
software publishers, hyper-scalers and software disruptors and enjoys
well-established relationships with more than 7,500 software and cloud
publishers[2].
- SoftwareONE has one of the broadest global footprints in its industry with
local sales capabilities in 90 countries, supported by regional and global
service delivery centers and the ability to transact in more than 150
countries.
- SoftwareONE has an outstanding track record of double-digit profitable
organic growth with a gross profit[3] CAGR of 29% from 2008 to 2018.
Including Comparex (acquired effective 31 January 2019), it generated pro
forma gross profit of CHF 724 million and pro forma adjusted EBITDA[4] of
CHF 187 million for 2018.
- The planned IPO on SIX Swiss Exchange is a natural next step in
SoftwareONE's development, intended to enhance its visibility and global
profile. The IPO is expected to consist entirely of secondary shares, with
the founding shareholders jointly maintaining the largest stake, while KKR
intends to retain a significant interest following the IPO.
- A press conference will take place today at 9:30 am at the Park Hyatt in
Zurich.
Daniel von Stockar, Chairman of SoftwareONE: "The planned IPO marks an
important milestone in the development of SoftwareONE. I am extremely proud
of what our team has achieved since our founding almost 20 years ago. Our
clear focus on software and cloud, our truly global reach and our
entrepreneurial and customer-oriented spirit have been the cornerstones of
our success."
Dieter Schlosser, CEO of SoftwareONE: "As cloud adoption and digital
transformation have progressed, we have evolved to become a leading
integrated software and cloud solutions provider, empowering thousands of
companies to transform. I am very confident that we can continue to
capitalize on the business opportunities our attractive and growing markets
provide."
*SoftwareONE overview: Business built to deliver profitable growth at scale*
Founded in 2000, SoftwareONE is a leading global provider of software and
cloud technology solutions serving approximately 65,000 business customers
of all sizes across a broad range of industries. With around 5,300
employees, it has one of the broadest global footprints in its industry with
local sales capabilities in 90 countries, supported by six regional and
three global service delivery centers. SoftwareONE's operating model is
built to deliver profitable growth at scale while ensuring customer
proximity, with the ability to transact in more than 150 countries, and
centrally delivered 24/7 customer service in 13 languages.
The company's integrated suite of solutions is organized into two business
lines:
In the Software & Cloud business line, SoftwareONE offers its customers
access to a comprehensive software and cloud portfolio, drawing on its
relationships with more than 7,500 publishers and its purchasing expertise.
The company's software catalogue includes leading global software publishers
such as Microsoft, Adobe, Oracle, Red Hat, VMware and Symantec, best
performing hyper-scalers such as Microsoft Azure and Amazon Web Services,
and a growing portfolio of disruptive publishers.
The Solutions & Services business line offers software lifecycle management
and technology services. Capabilities include consulting, integration and
vendor specific professional services, and managed services to monitor and
control software and cloud spend. The technology services portfolio is
designed to optimize customer infrastructure environments and spend and
includes cloud migration, security, and unified communications and
collaboration services.
SoftwareONE's offerings are connected by PyraCloud, its proprietary digital
hub, which allows customers to efficiently transact, manage and optimize
their software and cloud estate from a single platform offering data-driven,
actionable intelligence.
*Key strengths*
_Globally scaled platform benefiting from the secular growth of software and
cloud _
According to external industry experts, spending for global software and
cloud procurement reached CHF 525 billion in 2018 and is forecast to grow at
a CAGR of 10% until 2022, while spending for solutions and services reached
CHF 31 billion in 2018 and is forecast to grow at a CAGR of 17% in the same
period.
SoftwareONE is fully exposed to the secular growth of these markets globally
and has a strong track record of outperforming the software and cloud
market. SoftwareONE has also significantly grown its solutions and services
business in recent years. As technology becomes more significant and
complex, businesses of all sizes are confronted with commercial, technology
and digital transformation challenges. With its end-to-end suite of
solutions, its close publisher relationships, its expertise in complex
licensing and its attractive product mix, SoftwareONE is well placed to
further capitalize on the ongoing digital transformation trend and
underlying market growth.
_Strong customer relationships and diversified customer base_
SoftwareONE's results-driven, customer-first approach has allowed it to
build strong relationships as a trusted adviser to a large global customer
base. As a result, it enjoys strong gross profit retention, a growing share
of customers' wallets and high customer satisfaction.It also benefits from a
well-diversified business mix across geographies, customer types and
industries. Large enterprises account for approximately half of the gross
profit, with small and medium-size enterprises accounting for the other
half[5]. In the first half of 2019[6], the DACH region accounted for 34%,
the rest of EMEA for 32%, NORAM for 15%, APAC for 11% and LATAM for 8% of
gross profit.
_A partner of choice for software and cloud publishers globally_
SoftwareONE enjoys well-established relationships with more than 7,500
software and cloud publishers covering the full spectrum of software and
cloud spend. In particular, the company has a long-standing, strong
relationship with Microsoft. Based on its global transaction volume,
SoftwareONE estimates that it is Microsoft's largest channel partner
globally and the largest partner for Microsoft's fast-growing cloud
platform, Azure.[7] As a globally scaled software and cloud platform with
strong value-add offerings, SoftwareONE provides solutions to many of the
challenges software publishers face in the distribution of their products.
_Proven growth model delivering double-digit gross profit growth and margin
expansion_
SoftwareONE has a long-standing track record of strong double-digit organic
growth. It has delivered gross profit growth continuously each year for the
past decade, increasing at an organic CAGR of 29% from 2008 to 2018. Between
2016 and 2018, gross profit increased from CHF 317 million in 2016 to CHF
409 million in 2018, representing a CAGR of 14%. Adjusted EBITDA margin[8]
rose from 17% in 2016 to 33% in 2018, reflecting scale effects and
efficiencies, increasing standardization and automation, and rigorous
performance management.
For the combined group[9] including Comparex (acquired effective 31 January
2019), gross profit of CHF 571 million in 2016 increased at a CAGR of 13% to
gross profit of CHF 724 million in 2018. Adjusted EBITDA for the combined
group increased from CHF 92 million in 2016 to CHF 187 million in 2018,
representing a CAGR of 42%. In the same period, the adjusted EBITDA margin
for the combined group increased from 16% to 26%. SoftwareONE believes that
the superior margins on a SoftwareONE standalone basis illustrate a strong
upside potential for the combined group.
Operating free cash flow[10] for the combined group increased from CHF 68
million in 2016 to CHF 166 million in 2018, representing a CAGR of 55%.
SoftwareONE has a strong and unlevered balance sheet to support future
growth.
_Proven M&A expertise supplementing organic growth_
SoftwareONE has a strong track record of supplementing organic growth with a
strategic approach to M&A and since 2015 has completed a number of
acquisitions focused on scale, geographic reach and capabilities. Announced
in October 2018 and completed in January 2019, the acquisition of the global
software, cloud and IT solutions provider Comparex is expected to yield
significant strategic, competitive and financial benefits with targeted
gross annual run rate synergies of CHF 60 million on the level of EBITDA
from the beginning of 2021.
_Customer-first, results-driven culture_
In the software and cloud industry, culture is key to attract and retain
talent and to gain market share from competitors. SoftwareONE's business
success is driven by a highly qualified global workforce that embodies its
customer-first, results-driven company culture, its entrepreneurial spirit
and its core values of speed, customer focus, employee satisfaction,
humbleness, passion, integrity and discipline. Its highly experienced,
cohesive global leadership team has consistently delivered profitable growth
and has been instrumental in the company's successful strategic
repositioning as an end-to-end technology solutions provider and various
acquisitions.
CEO Dieter Schlosser: "Building on our key strengths, we have delivered
double-digit profitable organic growth for a decade, and we are very
confident that we can continue on our successful growth path going forward.
Over the mid-term, we target[11] gross profit growth from sale of Software &
Cloud in the high single digits and gross profit growth from Solutions &
Services in the high teens, resulting in targeted double-digit gross profit
growth for SoftwareONE. In addition, we target11 an adjusted EBITDA margin
approaching 35% over the mid-term, with adjusted EBITDA growth in excess of
the targeted gross profit growth."
*Current shareholder structure and outline of the planned offer*
Founding shareholders Daniel von Stockar, René Gilli and Beat Curti together
hold approx. 38% of the shares of SoftwareONE. KKR, a shareholder since
2015, currently holds approx. 21%, and Peruni Holding, the previous owner of
Comparex, holds approx. 15%. Management and (current and former) employees
hold approx. 10%, and approx. 16% are held by other shareholders and include
treasury shares.
The planned IPO on SIX Swiss Exchange is intended to enhance SoftwareONE's
visibility and global profile and provide access to the capital market. The
IPO is expected to consist entirely of secondary shares from KKR, Peruni
Holding, staff and other shareholders. The founding shareholders remain
fully committed to the company and will jointly maintain the largest stake,
while KKR intends to keep a significant interest following the IPO. The
founding shareholders and KKR will also continue to be represented on
SoftwareONE's board of directors.
Credit Suisse, J.P. Morgan and UBS Investment Bank are acting as joint
global coordinators and joint bookrunners of the planned IPO, while BNP
Paribas, Citi, Deutsche Bank, UniCredit and Zürcher Kantonalbank are acting
as joint bookrunners. Rothschild & Co is acting as financial advisor to
SoftwareONE.
*Selected historical financials*
SoftwareONE (standalone)
_(in CHFm unless noted 2016 2017 2018 CAGR 2016-18
otherwise)_
Gross profit from sale 257 272 323 12%
of software and Other
revenue
Gross profit from 60 72 87 20%
solutions and services
Gross profit 317 344 409 14%
EBITDA[12] 54 78 130 55%
_EBITDA margin[13]_ _17.1% _ _22.7% _ _31.7% _
Profit for the year 18 40 78 109%
_Profit for the year _5.6% _ _11.7% _ _19.1% _
margin[14]_
Combined group
_(in CHFm unless noted 2016 2017 2018 CAGR 2016-18
otherwise)_
Gross profit from sale 438 474 555 13%
of software and Other
revenue
Gross profit from 134 147 169 12%
solutions and services
Gross profit 571 621 724 13%
Adj. EBITDA 92 120 187 42%
_Adj. EBITDA margin_ _16.2% _ _19.3% _ _25.8% _
Adj. profit for the n/a n/a 100 n/a
year[15]
_Adj. profit for the _n/a _ _n/a _ _13.8% _
year margin[16]_
*Today's press conference*
SoftwareONE management will hold a press conference today at 9:30 am at the
Park Hyatt, Beethovenstrasse 21, in Zurich. Pre-registration is not
required.
*CONTACT*
SoftwareONE
Janine Hensen, Corporate Communications Manager
Tel. +49 341 2568 171, janine.hensen@softwareone.com
Lemongrass Communications
Karin Rhomberg, +41 44 202 52 65, karin.rhomberg@lemongrass.agency
Andreas Hildenbrand, +41 44 202 52 38, andreas.hildenbrand@lemongrass.agency
*ABOUT SOFTWAREONE*
SoftwareONE is a leading global provider of end-to-end software and cloud
technology solutions, headquartered in Switzerland. With capabilities across
the entire value chain, it helps companies of all sizes design and implement
their technology strategy, buy the right software and cloud solutions at the
right price, and manage and optimize their software estate. Its offerings
are connected by PyraCloud, SoftwareONE's proprietary digital platform, that
provides customers with data-driven, actionable intelligence and helps them
manage and optimize their software and cloud spend. With around 5,300
employees and sales and service delivery capabilities in 90 countries,
SoftwareONE provides around 65,000 business customers with software and
cloud solutions from over 7,500 publishers. For more information, please
visit SoftwareONE.com [1].
SoftwareONE Holding AG, Riedenmatt 4, CH-6370 Stans
*DISCLAIMER*
This document is not an offer to sell or a solicitation of offers to
purchase or subscribe for shares. This document is not a prospectus within
the meaning of Article 652a of the Swiss Code of Obligations, nor is it a
listing prospectus as defined in the listing rules of the SIX Swiss Exchange
AG or a prospectus under any other applicable laws. Copies of this document
may not be sent to jurisdictions, or distributed in or sent from
jurisdictions, in which this is barred or prohibited by law. The information
contained herein shall not constitute an offer to sell or the solicitation
of an offer to buy, in any jurisdiction in which such offer or solicitation
would be unlawful prior to registration, exemption from registration or
qualification under the securities laws of any jurisdiction. A decision to
invest in securities of SoftwareONE Holding AG should be based exclusively
on the issue and listing prospectus published by SoftwareONE Holding AG for
such purpose. Investors are furthermore advised to consult their bank or
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Statements made in this publication may include forward-looking statements.
These statements may be identified by the fact that they use words such as
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in connection with, among other things, any discussion of results of
operations, financial condition, liquidity, prospects, growth, strategies or
developments in the industry in which SoftwareONE Holding AG operates. Such
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factors that could result in a substantial divergence between actual
results, financial situation, development or performance of SoftwareONE
Holding AG and those explicitly or implicitly presumed in these statements.
Forward-looking statements contained in this media release regarding trends
or current activities should not be taken as a representation that such
trends or activities will continue in the future. Actual outcomes, results
and other future events may differ materially from those expressed or
implied by the statements contained herein. Such differences may adversely
affect the outcome and financial effects of the plans and events described
herein and may result from, among other things, changes in economic,
business, competitive, technological, strategic or regulatory factors and
other factors affecting the business and operations of SoftwareONE Holding
AG. Neither SoftwareONE Holding AG nor any of its affiliates is under any
obligation, and each such entity expressly disclaims any such obligation, to
update, revise or amend any forward-looking statements, whether as a result
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The information contained herein shall not constitute an offer to sell or
the solicitation of an offer to buy, in any jurisdiction in which such offer
or solicitation would be unlawful prior to registration, exemption from
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[1] Represents the number of unique trading entities in the combined
customer databases of SoftwareONE and Comparex, which figure may include an
overlap.
[2] Represents the estimated number of unique trading entities from which
SoftwareONE and Comparex purchased software and cloud products since the
beginning of 2018.
[3] Defined as total revenue less cost of software purchased and third-party
service delivery costs.
[4] Adjusted EBITDA represents earnings before net financial items, taxes,
depreciation and amortization as adjusted for M&A, integration and
IPO-related costs.
[5] Based on a study conducted by external industry experts.
[6] Based on H1 2019 gross profit, including 5 months of Comparex.
[7] Based on the combined results of SoftwareONE and Comparex for the 12
months ended 30 June 2019.
[8] Defined as adjusted EBITDA as a percentage of gross profit.
[9] Financial data for the combined group refers to pro forma financial
information for FY 2018 and like-for-like financial information for FY 2016
and FY 2017.
[10] Defined as adjusted EBITDA less capital expenditure.
[11] On a constant currency basis as of end of August 2019.
[12] EBITDA represents earnings before net financial items, taxes,
depreciation and amortization.
[13] Defined as EBITDA as a percentage of gross profit.
[14] Defined as profit for the year as a percentage of gross profit.
[15] Defined as profit for the year as adjusted for M&A, integration and
IPO-related costs.
[16] Defined as adjusted profit for the year as a percentage of gross
profit.
End of Corporate News
881967 2019-09-30
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September 30, 2019 01:00 ET (05:00 GMT)
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