Fund: Segulah IV
Sector: B2B
Acquisition: 2014
Responsible partner: Percy Calissendorff

Docu Nordic

”DOCU has shown strong growth and increasing profitability during recent years. Segulah has been a great support during this period, enabling the business to expand its offering of information services in existing and new markets”, says Stefan Lindqvist, CEO, DOCU.

DOCU is the market leading provider of information services to the Nordic construction industry, also serving the Nordic property and healthcare sectors. The company provides clients with data and market intelligence services, which are critical for its clients to identify and generate sales leads. DOCU operates in Sweden, Norway, Denmark and Finland. In 2016, DOCU reported sales of MSEK 513.

Opportunity. The investment rationale was fourfold: (i) grow within the existing customer base through structured price increases and introduction of new services, (ii) grow the existing product offering in Norway, Finland and Denmark, (iii) reduce churn, and (iv) undertake add-on acquisitions.

What did Segulah provide? Shortly after Segulah acquired DOCU as a carve-out from DOCU Group in the fall of 2014, the company acquired the majority (50.1%) of its main competitor in Denmark, CRM-Byggefakta. CRM was merged with DOCU’s Danish subsidiary Bygge Information A/S, which resulted in significant cost synergies. Moreover, management has with the support of Segulah, also successfully completed seven additional add-on acquisitions.

At the same time, management has successfully improved the operational quality of DOCU’s offering by reducing churn, actively managing subscription prices and increasing sales efforts on larger accounts. These activities have all contributed to strengthen the operations of the company and have contributed both to significantly increasing sales and profitability.

In November 2016, DOCU completed a refinancing, that replaced the original acquisition debt with a new less expensive facility that enabled a distribution of funds to S IV and other investors. In addition, the new facility financed the purchase of the remaining shares in the Danish subsidiary CRM corresponding 49.9% of equity.

The result. On August 2, 2017, DOCU was divested to Stirling Square Capital Partners, a London based mid-market financial sponsor, for an undisclosed amount. The returns from the transaction to investors in Segulah IV were well above expectations.

During Segulah’s three year ownership, DOCU experienced strong growth in sales, both through M&A and organically. This has been achieved by increasing customer penetration and expanding the company’s offering of information services into new verticals and markets. By gaining scale, and through focused price and cost optimization efforts, profitability has improved significantly. Between 2014 and the expected results of 2017 DOCU’s pro forma EBITDA margin increased from 19% to 30%.

Current portfolio

Case studies

Realized portfolio

  • Name Fund Sector Acquisition Exit
    Semantix Segulah V B2B Services 2015 2021
    Conapto Segulah V IT/Technology 2018 2021
    Docu Nordic Segulah IV B2B 2014 2017
    Sandbäckens Segulah V B2B Services 2016 2021
    Zengun Segulah V Construction 2016 2019
    Teknikmagasinet Segulah V Retail 2015 2018
    Mitt i Segulah IV Media 2014 2019
    Oglaend Industries Segulah IV Manufacturing & Industrial Goods 2014 2017
    eTRAVELi Segulah IV IT/Technology 2010 2015
    Byggfakta Scandinavia AB Segulah Information services 1996 1998
    EKH Ekonomihuset Segulah I Pension trusts 1997 1999
    Wilkenson Handskmakar´n AB Segulah Retail 1994 1997
    Teli Service Segulah I Repair & logistic services 1997 2002
    Modul-System Segulah I Vehicle interior fittings 1999 2002
    Norfoods Segulah II Food 2000 2004
    EEN Segulah I Music & entertainment 1999 2004
    CCS, Clean Chemical Segulah II Skin- and eye care 2003 2004
    NVS Installation Segulah II HVAC installation 2002 2006
    HMS Industrial Networks Segulah II Communication technology 2004 2007
    Previa Segulah II Occupational health 2004 2007
    Kosan Crisplant Segulah II LPG supplies 2004 2008
    Callenberg Group Segulah II Marine electronics 2001 2008
    Joy Segulah III Retail 2006 2009
    Isaberg Rapid Segulah III Office supplies 2007 2009
    NEA-gruppen Segulah III Electrical installation 2006 2010
    Exotic Snacks Segulah III Food 2008 2011
    Skandinavisk Kommunalteknik Segulah III Sewage systems 2008 2011
    InfoCare Segulah II Electrical repair 2004 2012
    Medstop Segulah IV Pharmacies 2010 2013
    PMC Group Segulah III Hydraulics 2005 2015
    S:t Eriks Segulah III Building products 2005 2015
    Kemetyl Segulah III Chemicals 2007 2016
    Almondy Segulah III Confectionery 2008 2015
    Scan Coin Segulah IV Cash handling 2010 2015
    CCS Healthcare Segulah IV Healthcare 2011 2019
    Balco Segulah IV Manufacturing & Industrial Goods 2010 2021
    Gunnebo Industrier Segulah III, Segulah IV Industrial 2008 2019