HgCapital has sold Zitcom, a Danish hosting and cloud solutions provider, to Intelligent, a Belgian firm which provides hosting solutions.
The exit gives HgCapital a 3.3x return and 145% IRR after 18 months of ownership. The sale is the second exit from HgCapital’s specialist lower mid-market Mercury TMT fund, following the sale of Relay last year. The fund has so far delivered aggregate realised returns of 2.8x and 70% IRR.
Zitcom provides hosting and cloud solutions to small and medium sized businesses in Denmark and has grown its revenue consistently over the past ten years through organic growth and acquisitions. Its services include mass and managed hosting space, domain website hosting, email for smaller customers and managed servers and applications for larger customers.
It provides cloud services to over 100,000 business and private customers in Denmark, operating under the brands Zitcom, Wannafind, UnoEuro, Curanet, ScanNet and Cloud.dk.
During the 18-month period of HgCapital’s ownership, Zitcom acquired four companies which helped double its customer base and revenue and almost triple its profits.
Stefan Rosenlund, CEO of Zitcom Group, said: “HgCapital has been a fantastic partner for Zitcom Group and has helped us mature – both as a business and as individuals. HgCapital has been a huge asset in developing Zitcom Group into a strong and market leading hosting group ready for new challenges and new ownership.”
Nick Jordan, Director at HgCapital, added: “It has been a pleasure to partner with the Zitcom Group management team and employees over the last 18 months and play a role in building a leader in the Danish SME hosting segment. They have transformed their sector in Denmark. We wish them continued success in this exciting new phase of their story."