Ørn Software announces intent to float on stock market

Picture: Sten-Roger Karlsen

Over the least six years, the Viking Venture portfolio company Ørn Software has completed eight acquisitions, and become a leading software company within digital solutions for industry and real estate management. Ørn Software has applied for listing on Euronext Growth, part of Oslo Børs, with ambitions for further growth in Europe.

– There is huge demand for digital solutions that contribute to increased efficiency, improved collaboration, and reduced environmental footprint. Our software solutions have been adopted by almost 1,200 businesses in the Nordic region, says Sten-Roger Karlsen, CEO of Ørn Software.

Ørn Software supplies SaaS (software as a service) solutions focused on real estate management, industrial maintenance and quality management, as well as energy optimization and sustainability. Customers include companies such as Skistar, Bane NOR, Orkla, Entra, and DNB, in addition to many aquaculture companies.

A large share of Ørn Software’s revenue is generated in the form of annual recurring revenue (ARR). In the period 2017 to 2020, ARR has grown an average of 73% per year and has now reached NOK 107 million, driven by organic growth and acquisitions. If one adjusts the numbers for the impact of Facilit, acquired in March 2021, ARR is as high as NOK 122 million. In 2020, the company’s adjusted EBITDA margin was 32%. Ambitions are high for the coming years:
– Our goal is to increase ARR to NOK 300 million and the EBITDA margin to at least 40% by the end of 2025. We know that our products are very attractive to many companies, and the market potential in the Nordic region alone is NOK 12 billion. Our ambition is to become one of the leading players in Europe, at which stage the potential is of course far greater, says Karlsen.

Since 2015, Ørn Software has completed as many as eight acquisitions, and the plan is to accelerate this even further.
– In the future, we will look beyond our Nordic borders. In a few years, Ørn will be positioned as a leading European player in our segment. By introducing an increasing number of companies into the Ørn family, we are strengthening our product portfolio and are able to satisfy an even broader range of customer requirements. This gives us access to new customer groups, and thereby also the potential for organic growth through cross-selling. With a strengthened capital base and solid new owners, our aim is to be very active on the acquisition front going forward, says Karlsen.

Growth accelerated when Viking Venture became the majority shareholder in 2017. Viking Venture is the Nordic region’s leading software investor and specializes in Business-to-Business (B2B) SaaS software companies. Over the past year, the investor has completed successful IPO listings of portfolio companies Mercell and House of Control. In addition, EcoOnline, in which Viking Venture is a shareholder along with Summa Equity and Goldman Sachs, is now also heading towards a listing on the stock exchange.

– We are impressed by what the team at Ørn Software has achieved, says Joar Welde, Partner in Viking Venture and Chairman of the Board of Ørn Software, and continues:
– The company is well positioned for strong growth moving forward. Ørn Software has a strong financial and technological platform for further expansion in the years to come.

Ørn Software

  • Ørn Software is one of the country’s leading software companies within solutions for efficient management, operation, and maintenance in a wide range of industries, such as real estate, industry, and aquaculture
  • Ørn Software currently has almost 1,200 customers, including companies such as Skistar, Bane NOR, Orkla, Entra, and DNB, and over 50 companies in the aquaculture industry. The company has a subscription-based business model
  • Ørn Software has an aggressive growth strategy. In the period 2017 to 2020, annual recurring revenue (ARR) has grown an average of 73% per year and now totals NOK 107 million, driven by organic growth and acquisitions. In 2020, the company’s adjusted EBITDA was NOK 39 million (these are pro forma figures that include businesses acquired in 2020)
  • The company had only 3.7% in churn in 2020
  • Ørn Software has succeeded well in the M&A market, with four acquisitions in 2020 alone: Pixelwerk, Avector, MainManager and Entro IT, in addition to Facilit in 2021