Nordic Capital exits IT services business

The Northern European mid-market investor has sold Swedish IT company Guide to Oslo-headquartered IT group EDB.

Stockholm-based Nordic Capital has entered into a binding agreement to sell Guide, a Swedish supplier of IT services, to Norwegian IT group EDB.

Oslo-headquartered EDB said that it had paid Skr675.5 million (€70.1 million; $83.6 million) for Nordic Capital’s 80 percent stake in Guide. The remainder is held by management and staff.

Nordic Capital originally acquired the IT Consulting and Integration divisions of European design group Framfab in March 2001 for an undisclosed sum, before renaming the business Guide.

The original investment was made through Nordic Capital’s Nordic Capital IV fund, which closed on €800 million ($962 million) in 2000. The firm is currently investing from Nordic Capital V, which closed on €1.5 billion in 2004.

Fredrik Näslund, director at Nordic Capital, said that, under Nordic Capital’s ownership, Guide had trebled its revenues both through organic growth and several add-on acquisitions, including Norwegian service providers Avenir, Spring Consulting and Software Technology Integration.

Stockholm-headquartered Guide is an independent consultancy specialising in IT and operational consulting services, focusing on IT infrastructure, business development, project management, system development, administration and application management. The company has 520 employees and offices in Västerås, Uppsala, Lidköping, Gothenburg, Malmö and Skövde. In 2005, Guide reported revenues of Skr523 million (€56 million; $67 million).