Cases - 01.04.2016

Admincontrol – a leading SaaS provider of governance portals

Admincontrol delivers cloud-based board portal and virtual data room solutions in the Nordics and select countries outside the Nordics. The board portal offers directors secure access to confidential board material through both an app and a web-based solution. The service offers access to the full board history of documents, and enables the users to work directly in the documents with personal comments and highlighting, just as you would do on paper. Working through the app, the users also have offline access to the documents. The virtual data room solution offers secure storing and distribution of documents. The attractive user interface makes distribution effective for both the seller and prospective buyers in any M&A process or transaction. In 2014, Admincontrol reported revenues of NOK 57 million with an EBITDA of NOK 14 million, continuing its strong topline growth of more than 30% p.a

At Herkules we believe a key driver for success is to have an active, structured and responsible industrial ownership approach. We are active owners with a 3-phase and 9-step investment methodology. The three generic phases are: Sourcing, Development and Exit. In the following, we will explain how we have worked systematically in the first two phases with Admincontrol.
Steps

Phase 1: Sourcing

Herkules’ Industry Group Services had monitored Admincontrol over several years. Herkules believes in the attractiveness of digitalized services in a proven SaaS (software as a service) model. Also, Herkules has been keen users of the Admincontrol solutions in several companies and processes.

In the fall of 2014, Herkules approached the company and met with the management team. Following continued interest, Herkules made extensive analysis and evaluations, focusing on understanding Admincontrol’s key value drivers and competitive position.

In January 2015, a structured sales process of Admincontrol was launched. Herkules participated in this process, well positioned after completing substantial fundamental and important analyses ahead of the competition. Based on research performed and dialogue with the management team, we established an action oriented value creation plan focusing on the following:

  1. Increase number of accounts for Board Portals and Virtual Data Rooms
  2. Increase average revenue per account and customer (ARPA and APRC)
  3. Keep churn low
  4. Develop product offering
  5. Do all this while strictly monitoring cost

The transaction was signed on 18 March 2015, and completed in early April.

Phase 2: Development

As active owners focusing on improving and realising the value of the portfolio company, phase 2 is the most important. In this phase we execute on the value creation plan and the initiatives identified in phase 1. Together with Admincontrol’s management, we defined a focused growth plan with clear targets both in terms of products/solutions and geographies as well as a detailed action plan to execute on the overall value creation plan

Admincontrol is currently working on executing the value creation plan. Since the acquisition, Admincontrol has acquired its agent/partner in Sweden. This initiative should ensure closer coordination, collaboration and control and should lead to improved efficiency. We already see accelerated growth in the attractive Swedish market.

Phase 3: Exit

With improved strategic position and value of the company, we foresee industrial interest for Admincontrol. The company has a leading position in the Nordic market, and the business model has proven to be both scalable, profitable, and successful.