Acquires 78% of Capcito Finance… …corresponding to an EV of SEK 410m (17x ’20 EV/s) We like that it strengthens Fortnox’s Finance offering
This morning, Fortnox announced that it will acquire 78% of Swedish-based Capcito Finance at a total enterprise value of SEK 410m. In 2020, Capcito generated sales of SEK 24.5m and EBIT of SEK -36.1m. We have no information for LTM numbers, but it looks like that it is a rapidly growing company, according to data from allabolag.se. Even so, the purchase price corresponds to an EV/sales multiple for 2020 of c. 17x. The transaction is expected to close on 1 December 2021 and is financed by cash.
While the transaction multiple is rich on recently reported numbers, Fortnox’s own multiple on 2021e EV/sales is currently 39x. All else equal, the acquisition lifts cons. ’22e-‘23e sales forecasts by ~2%. However, on the back of the clear synergies, some extrapolation is likely to be done on cons. ‘23e estimates. As such, we could see cons. ‘23e sales rise by ~3% on today’s announcement.