Fortnox soars 35% as EQT and First Kraft launch SEK90 per share buyout offer
Investing.com -- Fortnox shares surged over 35% on Monday following the announcement of a recommended cash offer of SEK90 per share from a consortium led by EQT (ST:EQTAB) and First Kraft, the investment vehicle of its chairman and 18% shareholder, Olof Hallrup. The offer represents a 38% premium to the closing price on March 28.
Analysts at Jefferies view the possibility of a competitive bidding process as unlikely, given Fortnox’s market position and business model.
While Fortnox is a dominant player in Sweden’s accounting software market, its reliance on accountants as a distribution channel makes expansion beyond Sweden challenging.
This limits its appeal to potential rival bidders, as few competitors would be willing to pay a significant premium for a business that is not easily scalable internationally. As a result, investors are expected to accept the proposed terms.
The deal values Fortnox at a forward price-to-earnings multiple of 50 times its estimated 2026 earnings, with a free cash flow yield of 1.7%.
While this represents a premium valuation, few software companies are projected to achieve Fortnox’s expected 20% growth rate.
The offer underscores the strong demand for high-growth software assets, even at elevated multiples.
Analysts at Jefferies suggest it is unlikely that any other bidders will be interested in Fortnox’s deal due to its leading position in Sweden and structural challenges associated with expanding beyond its home market.
With the backing of Hallrup, who holds a major stake, and the lack of clear alternative bidders, the proposed deal appears to be on track for completion.
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