Macquarie’s offer to buy Byggfakta valued at US$1 billion
Macquarie has announced plans to acquire Swedish software company Byggfakta. The deal is worth an estimated US$1 billion. The buyer is a group of investors, including TA Associates and Stirling Square. Byggfakta develops software for the construction sector.
Macquarie has offered to pay US$4.5 million in cash for each Byggfakta share. The total value of the developer’s securities is approximately US$ 1 billion. It is worth noting that the buyer already owns more than 67% of the voting shares. He has been financially supporting the company since 2017. Following the Swedish company’s IPO, Macquarie has slowed down the pace of its share purchases.
According to Stirling Square spokesman Henrik Lief, the main purpose of the acquisition is the investor’s intention to make the developer a market leader. The construction sector has long lagged behind other industries in terms of digitalisation. However, recent years have seen rapid development and a growing demand for specialised software. Macquarie claims to have all the resources necessary to accelerate the Swedish developer’s growth. And the investors are confident that the most effective strategy for this would be to exit the stock market.
Reaction to Macquarie’s bid
Following Macquarie’s announcement, the Swedish software developer’s shares jumped almost 30% to their highest level since January 2023. The company’s management believes that the investor group’s offer is favourable from a long-term business development perspective. Byggfakta will receive a 31% premium per share if the deal goes through.
Despite the rapid growth, the price of the developer’s shares is still well below the value at the time of the IPO:
– in January 2024, the shares were sold at SEK 45.8 per unit;
– at the time of listing in October 2021, the price was SEK 75.
The fall in value is due to several factors, including the crisis in the construction market.
Overview of Byggfakta’s operations
One of Byggfakta’s key strategies is to enter new markets. The company is continuing its expansion in the USA. To this end, it acquired local software developer Construction Monitor in the summer. This has given the Swedish company access to its projects and data from the US, enabling it to expand its range of services. Byggfakta has also integrated its processes with Construction Monitor in the US, strengthening its market presence.
The Swedish company provides software development and maintenance services to the construction industry. It operates in 26 states. It has 2,000 employees.
