Draftit Acquisition: Key Details, Impact, and What Comes Next

Visma's acquisition of Draftit marks a significant step in the digital compliance sector. By integrating Draftit's expertise in HR and GDPR solutions, Visma aims to bolster its offerings and streamline compliance processes for businesses. This strategic move underscores Visma's commitment to enhancing operational efficiency and supporting organizational growth in a complex regulatory landscape.

What Is Draftit?

Founded over twenty years ago, Draftit specializes in regulatory compliance solutions for HR, data protection, and educational institutions. Their core offerings include HR handbooks, GDPR compliance tools, and legal handbooks for schools. Draftit stands out with its extensive experience, high customer retention rate, and widespread adoption across Swedish municipalities. Their comprehensive solutions are designed to simplify compliance management, making them a leading legal tech company in the Nordics.

Who Acquired Draftit?

Visma is a prominent provider of business software solutions, dedicated to simplifying the work lives of entrepreneurs, businesses, and societies. Their key offerings include cloud software for various business needs, ERP suites for medium businesses, and accounting software for small businesses. Additionally, they provide specialized tools for the public sector and accounting offices. With a strong presence in 33 countries and serving 2.0 million customers, Visma holds a significant market position, supported by steady growth and numerous acquisitions.

When Was Draftit Acquired?

Visma acquired Draftit on April 2, 2020. This acquisition came at a time when digital compliance was becoming increasingly critical due to evolving regulations and the growing importance of data protection. By integrating Draftit's expertise, Visma aimed to enhance its digital compliance offerings, particularly in HR and GDPR sectors, aligning with industry trends towards more robust and automated compliance solutions.

Why Was Draftit Acquired?

• Market Expansion: The acquisition of Draftit allows Visma to expand its market presence in the compliance sector, particularly in HR, GDPR, pay, school, and social care. This strategic move enhances Visma's offerings in digital compliance products, enabling it to serve a broader customer base.
• Technology Integration: Draftit has developed a set of digital tools that cover multiple compliance areas. By integrating these solutions into its existing product portfolio, Visma enhances its technological capabilities in compliance management, particularly in web-based services for HR and GDPR.
• Competitive Advantage: The acquisition strengthens Visma's competitive position by expanding its customer base and leveraging Draftit's established reputation. Draftit's award-winning status and expertise in compliance provide Visma with a significant edge in the market, allowing it to better serve both current and new clients.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified.
• Key Conditions or Agreements:
  • Draftit will remain a self-sustained company with the same strategy and organization as before.
  • Visma will support Draftit’s continued growth and progress by providing resources and valuable experience.
  • Draftit will continue developing products and services where legal knowledge is combined with digital solutions for compliance needs.

Impact on Draftit

The acquisition of Draftit by Visma has led to minimal changes in operations and management. Draftit continues to operate as a self-sustained company, maintaining its existing strategy and organizational structure. Visma's support has primarily been in the form of resources and expertise to aid Draftit's growth and development. This approach ensures that Draftit retains its operational independence while benefiting from Visma's extensive experience in the digital compliance sector.

In terms of product offerings, the acquisition has allowed Draftit to enhance its services by integrating Visma's advanced technological capabilities. This has resulted in more robust compliance solutions, particularly in HR and GDPR sectors. Employee reactions have not been explicitly documented, but the continued operation under the same strategy suggests a stable transition. Customer reactions have also not been detailed, but Draftit's strong customer base and high retention rates indicate a positive reception. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.