Deal Flow

Robust software deal flow has continued through the last several years, and remain at historically high levels, and both Nordic buyers and sellers have been active. Demand for high quality technology companies has rarely been higher.

Nordic Tech Exit Volume, 2010-2016

After hitting a record in 2015, tech deal volume in the Nordics slowed a bit in 2016. However, Q2 2016 set its own record, with the dip coming in Q3 matching the global trend, as international megadeals took the attention of buyers. Those billion-dollar deals create their own needs for tuck-ins and responsive M&A, so expect Nordic sellers to challenge the record in 2017.

Top Buyers vs. Sellers, 2014-2016, by quarter

Looking at both Nordic tech buyers and sellers on a quarterly basis since 2014, we see a robust tech M&A market, and one of the very few markets in the world to have a nearly even number of buyers and sellers. Buyers set a faster pace in 2016, but watch for sellers to catch up in the coming months.

Top Buyers of Nordic Companies, 2012-2016

The most active acquirers of Nordic software companies are regional players like Addnode or EQT. However, globally-minded serial acquirers like J2, Enghouse and Autodesk have also been active in the region. Each of the top four global acquirers of technology companies — Google, J2, Accenture and Constellation—have each also made at least one Nordic acquisition in the last couple years. This is of particular note considering Nordic software firms selling cross border have averaged 55% higher valuations than in-region deals.

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Inside the Nordic market:

Valuation

Deal multiples and valuation trends across Scandinavia

Deal Flow

Deal volume numbers and trends across Scandinavia

Geography

Scandinavian buyer and seller origins by country and region