Norway-based enterprise software maker Visma AS, whose products are used by more than 1.1 million organizations worldwide, is now worth $19 billion after a secondary share sale.

The company disclosed the sale late Thursday. This morning, Visma made another announcement, saying that it’s weighing plans to go public in 2023. “We are considering an IPO during 2023, of course given that market conditions are favourable,” a company spokesperson told Reuters. “The Oslo Stock Exchange could be a good option.”

With its new $19 billion valuation, Visma is one of the most valuable privately held companies in the enterprise software industry.

Visma provides cloud-based applications that organizations use to perform key business tasks such as recruiting, accounting and managing their supply chains. The company’s more than 1.1 million customers range from small businesses to large enterprises and government agencies. Visma generated revenues of about $1.9 billion euros, or approximately $2.25 billion, in the 12 months through June 2021, not only from its cloud applications but also technology consulting services that it sells alongside its software.

In the secondary sale the company announced late Thursday, Aeternum Capital, Norway’s Government Pension Fund and Vind each bought stakes ranging from from 0.4% to 0.6%. 

Visma’s new $19 billion valuation is a major win for its existing investors. The sum is more than 50% higher than the $12.2 billion valuation that Visma received after an investment last year, which in turn was more than triple the $3.5 billion the software maker was worth in 2014. Visma’s biggest investor is private equity firm Hg, which owns a majority stake.

A future stock market debut could potentially further boost Visma’s already steep valuation, as well as provide it access to additional capital for fueling growth initiatives. The company makes extensive use of acquisitions as part of its growth strategy: Visma has bought more than 35 firms since 2016 alone. The funds from a potential initial public offering would give the company more resources for future strategic acquisitions.

Through a combination of in-house software development and acquisitions, Visma has built a large collection of products across the market segments where it competes.

In the procurement software market, the company provides tools that enterprises use for tasks ranging from managing their warehouses to placing orders with suppliers. Visma also offers a so-called procurement pooling service that gives customers access discounts negotiated in advance by the software maker.

In the accounting segment, Visma provides a cloud-based accounting platform for small and midsize companies, tools aimed at startups and a range of more advanced finance products designed for large enterprises. The software maker also has a large collection of human resources tools, as well as additional applications spanning other segments. 

Visma is not the only privately held enterprise software giant that has raised the prospect of a stock market listing recently. A few weeks ago, leading analytics provider SAS Institute Inc., which is owned by its founders, announced plans to go public in 2024. The announcement came a few weeks after the company is said to have backed out of talks to be acquired by Broadcom Inc. in a deal that would have reportedly valued it at $15 billion to $20 billion. 

Photo: Visma