House of Control Acquisition: Key Details, Impact, and What Comes Next

Visma's acquisition of House of Control marks a significant move in the SaaS industry. By integrating House of Control's specialized solutions, Visma aims to enhance its market position and expand its service offerings. This strategic acquisition underscores Visma's commitment to growth and innovation, positioning both companies for future success in a competitive market.

What Is House of Control?

Founded in 2006, House of Control specializes in contract management and compliance software solutions. Its core products include contract management software, IFRS 16 lease accounting software, and Digital Operational Resilience Act (DORA) software. House of Control stands out in the market with its user-friendly technology designed to cut costs, save time, reduce risk, and improve compliance. As a leading provider in the Nordic region, it emphasizes best-in-class support and a unique company culture focused on positivity and growth.

Who Acquired House of Control?

Visma is a prominent leader in the business software industry, known for its extensive network of over 180 SaaS companies. The company offers a range of cloud software solutions tailored for small businesses, medium businesses, the public sector, and accounting offices. Key products include cloud accounting software, ERP suites, e-invoicing, and digital signature solutions. With a strong presence in 33 countries and serving 2.0 million customers, Visma maintains a significant market position, supported by a workforce of 16,400 employees.

When Was House of Control Acquired?

Visma completed the acquisition of House of Control on November 15, 2022. This acquisition came at a time when the SaaS industry was experiencing significant growth, driven by the increasing demand for business-critical software solutions. The economic uncertainty during this period heightened the need for robust contract management and compliance tools, making House of Control's offerings particularly attractive. This strategic move aligns with Visma's ongoing efforts to expand its market presence and enhance its service portfolio.

Why Was House of Control Acquired?

• Market Expansion: The acquisition of House of Control (HoC) by Visma represents a strategic opportunity to broaden its market presence. By integrating HoC's mid-market and enterprise products, Visma can expand its reach in the SaaS market, particularly in Norway and other regions where HoC has a strong foothold. This move aligns with Visma's ongoing strategy to enhance its portfolio with business-critical software solutions.
• Technology Integration: House of Control's SaaS solutions, particularly in contract management and IFRS 16 compliance, are highly complementary to Visma's existing offerings. By integrating these technologies, Visma enhances its technological capabilities, providing more comprehensive solutions to its customers. This integration also leverages HoC's customer-driven innovation, which has been a cornerstone of its growth over the past 16 years.
• Competitive Advantage: The acquisition strengthens Visma's competitive position by associating it with House of Control's strong brand and financial stability. This linkage reassures customers of the reliability and long-term viability of the solutions offered. Additionally, the unique expertise of HoC's employees and management team, combined with Visma's robust funding and market presence, positions Visma to offer more comprehensive and trusted solutions, thereby enhancing its market share and competitive edge.

Acquisition Terms

• Acquisition Price: The acquisition price was NOK 11.20 per share, valuing House of Control at approximately NOK 689 million on a fully diluted basis, which is equivalent to €66.59 million.
• Payment Method: The transaction was completed through a voluntary cash offer.
• Key Conditions or Agreements:
  • Approximately 98% of House of Control’s shareholders accepted the offer during the offer period.
  • Visma resolved a compulsory acquisition of the remaining shares.
  • House of Control applied for delisting its shares from Euronext Growth Oslo.
  • The offer price represented a 60% premium to the closing price on September 23, 2022.
  • The Board of Directors of House of Control unanimously recommended that shareholders accept the offer.
  • Leading shareholders representing 34% of the issued share capital signed irrevocable pre-commitments to accept the offer.
  • The completion of the offer was subject to customary conditions, including a minimum acceptance level of 90% and relevant regulatory approvals.
  • House of Control will operate as an independent entity within the Visma Group.

Impact on House of Control

The acquisition of House of Control by Visma has led to several operational and managerial changes. House of Control will continue to operate as an independent entity within the Visma Group, maintaining its unique drive and culture. This structure allows House of Control to leverage Visma's extensive experience and resources while preserving its operational autonomy. Additionally, the company has applied for delisting from Euronext Growth Oslo, marking a significant shift in its corporate governance. These changes are expected to strengthen House of Control's market position and enhance its strategic alignment with Visma's broader objectives.

In terms of product offerings and services, the acquisition is poised to enhance the attractiveness and reliability of House of Control's solutions. The integration with Visma's ecosystem will provide better funding and a stronger brand association, which is crucial for customers seeking mission-critical software. Employee reactions have been largely positive, with the acquisition seen as a quality stamp that enhances job security and market visibility. Customer feedback has also been favorable, with some new clients signing on specifically because of the acquisition. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.