GMT Communications Partners, the European TMT- focused private equity group, is delighted to announce that it has agreed to acquire the legal and tax & accounting businesses of Thomson Reuters in Denmark and Sweden. Closing is expected to occur later this week. Financial terms were not disclosed.
The business employs approximately 140 people across offices in Copenhagen, Stockholm and Aarhus. Key brands are KARNOV, PACTA and UfR, amongst others.
The business is well positioned in attractive niche markets of the professional information industry, occupying a strong market-leading position in Danish legal, tax and accounting professional information. It is the largest provider of online legal professional information in Sweden. Customers include law firms, corporates, government lawyers and law students, as well as accounting firms and corporate accountants.
The business has a strong subscription-based business model with high levels of recurring revenues and strong cash generation.
Following the closing, GMT plans to support a growth strategy based on both organic and acquisitive expansion in the Nordic region. GMT believes that the online-based business model, which is growing strongly and currently accounts for 60% of total revenues, also provides high operational leverage and scalability. Key executives, including Managing Director Neil Story, will remain with the business.
The deal is GMT’s 29th investment in Europe since its foundation in 1993, and cements the firm’s position as the leading mid-market TMT sector specialist fund in Europe.
Stefan Franssen, Partner at GMT, who will join the Board of the Company following the transaction, said: “We are delighted to be working with Neil Story and the team. The Company has a very strong leadership position in its largest segment and has an attractive business model with recurring, subscription-based revenues. We look forward to helping this organisation realise its growth potential.”
Neil Story, Managing Director of the business, said: “GMT’s clear expertise in the TMT space, particularly in helping content businesses grow through online-based growth strategies, will make them a great partner. We anticipate that with their active support in helping the business expand organically and through selective acquisitions, the business has the potential to grow rapidly. I look forward to continuing to work with our highly valued customers and suppliers and to delivering a continually improving service.”