EQT, based in Sweden is pleased to announce that the EQT X fund, also known as EQT Private Equity, is set to invest in the Nordic software companies HVD Group (Hantverksdata) and Next (Next One Technology). Both entities cater to the tradespeople and construction industry, with HVD Group focusing on installation and service professions, such as electricians, plumbers, and heating and ventilation firms, while Next targets contractors. The strategic investment aims to enhance the product offerings of both companies, leveraging their strong customer satisfaction scores.
The tradespeople and construction industry, despite being one of the largest globally, is still in the early stages of its digital transformation, leading to low productivity growth. HVD Group and Next play a crucial role in supporting the industry’s transition from analog or complex solutions to comprehensive end-to-end software platforms.
Founded in Sweden, HVD Group boasts over 10,000 customers across the Nordics and Germany. The company provides cloud-based end-to-end field service management and enterprise resource planning software, facilitating order, project, and asset management, scheduling, time reporting, procurement, and documentation handling. This minimizes administrative burdens, reduces waste, and mitigates the risk of errors in both field and back-office operations.
Similarly, Next, also founded in Sweden, offers a cloud-based software solution to construction firms. With approximately 2,500 customers primarily in the Nordics, Next supports contractors, builders, and service firms with project management software, covering order and resource management, project financials, document handling, checklists, and quality control.
Ali Farahani, Partner within EQT Private Equity’s Advisory Team, expressed excitement about creating a robust Northern European platform with leading tech and product capabilities. The investment is seen as a strategic move to support the organizations’ high growth in the next phase.
HVD Group Chairperson Anders Böös and Adelis Partner Joel Russ emphasized their commitment as long-term investors in HVD Group, expressing confidence in the robust and attractive tradespeople software sector. Both parties look forward to advancing together with EQT, HVD Group, and Next.
HVD Group CEO Mikael Viotti highlighted the significant investments made in modern product and technology, stating that joining forces with Next will further strengthen their customer offerings. Johan Jarskog, CEO of Next, echoed the sentiment, noting the exciting and complementary fit between the two companies.
Both transactions are expected to close in February 2024. EQT was advised by Vinge, and Adelis was advised by White & Case. The previous owner of Next, Monterro, was advised by Houlihan Lokey.
Following these transactions, EQT X is expected to be 30-35 percent invested based on the target fund size, including closed and/or signed investments and announced public offers.
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By Proptechbuzz
By Ravi Kumar
