Formpipe: Surprising change at the helm - ABG
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* Public divestment completed (EV SEK 850m)...* ... but unexpected change at the helm* CFO Sophie Reinius to become acting CEO
Sale of Public completed...
This afternoon, Formpipe announced that it has completed the sale of its Public business to STG for a total EV of SEK 850m. This was an expected announcement, and our forecasts have already been adjusted for this divestment. What remains is Lasernet: a global document and customer communication management software suite with ~SEK 240m in r12m sales, of which ~60% are SaaS revenues. Of the sale proceeds, SEK 775m is in the form of a cash payment at closing, meaning that Formpipe will have a net cash position of SEK 764m by the end of 2025e. Although the ultimate outcome is still uncertain, we expect that ~SEK 600m (SEK 11/share) of this will be distributed through an extraordinary dividend in 2026.
... but also an unexpected change of CEO
Furthermore, in conjunction with today's press release, it was announced that Magnus Svenningson will step down as CEO on 31 December 2025. This was unexpected, as we had received no indication that this was potentially going to happen, and our assessment is that Formpipe has fared relatively well since he took the helm in Q3'23 (despite several external headwinds, including a slowdown in the momentum for Temenos). We speculate that this may reflect a desire for a CEO with greater Microsoft Dynamics expertise, given that this is Lasernet's most important platform. Until a permanent replacement has been found, the company's CFO, Sophie Reinius, will serve as acting CEO. Finally, Formpipe is also announcing some other changes to its organisation, which will drive cost efficiency gains of ~15%. This is a welcome move, as we argue that there is good potential for higher margins; especially as the divestment means that group common costs are currently at an elevated share of sales (~10% of sales).
Sale of Public completed...
This afternoon, Formpipe announced that it has completed the sale of its Public business to STG for a total EV of SEK 850m. This was an expected announcement, and our forecasts have already been adjusted for this divestment. What remains is Lasernet: a global document and customer communication management software suite with ~SEK 240m in r12m sales, of which ~60% are SaaS revenues. Of the sale proceeds, SEK 775m is in the form of a cash payment at closing, meaning that Formpipe will have a net cash position of SEK 764m by the end of 2025e. Although the ultimate outcome is still uncertain, we expect that ~SEK 600m (SEK 11/share) of this will be distributed through an extraordinary dividend in 2026.
... but also an unexpected change of CEO
Furthermore, in conjunction with today's press release, it was announced that Magnus Svenningson will step down as CEO on 31 December 2025. This was unexpected, as we had received no indication that this was potentially going to happen, and our assessment is that Formpipe has fared relatively well since he took the helm in Q3'23 (despite several external headwinds, including a slowdown in the momentum for Temenos). We speculate that this may reflect a desire for a CEO with greater Microsoft Dynamics expertise, given that this is Lasernet's most important platform. Until a permanent replacement has been found, the company's CFO, Sophie Reinius, will serve as acting CEO. Finally, Formpipe is also announcing some other changes to its organisation, which will drive cost efficiency gains of ~15%. This is a welcome move, as we argue that there is good potential for higher margins; especially as the divestment means that group common costs are currently at an elevated share of sales (~10% of sales).