Point
Country: Sweden
Region: Stockholm
Investors: Nordic Capital Fund V
Since Nordic Capital acquired Point in 2004, the company has expanded to become Europe’s leading provider of electronic payment solutions, serving over 475,000 individual merchant contracts across Europe.
Nordic Capital has supported the management to make significant R&D investments and complete strategic add-on acquisitions, creating value and sustainable growth opportunities, and thereby ensuring that Point remains a European leader in a field with tremendous growth potential. The business was sold to VeriFone in 2011, having grown revenues within system solutions fivefold during Nordic Capital’s investment period.
Fredrik Näslund
Partner, NC Advisory AB - Adviser to the Nordic Capital Funds
Under Nordic Capital’s ownership, Point has had fantastic growth, with sales within system solutions close to five times higher than at the time of acquisition.
20%
CAGR in terminal numbers
255%
EBITDA growth during investment period
What did the business need?
Strategic support to stay ahead of competition in fast-growing market
Growth on international stage
Financing and support for add-on acquisitions
How did private equity backing create lasting value?
Invested in development of “payment as a service” network
Invested heavily in routing capabilities to offer customers a secure cloud system
Change to a recurring revenue model based on subscriptions, enhancing margins
Expanded into selected European countries, becoming the market leader in France and the UK
Completed seven add-on acquisitions and four terminal fleets
What outcomes did private equity investment achieve?
Point grew faster than the market with a 20% CAGR in installed terminals
Revenue per terminal rose threefold during the investment
Total sales grew by 168% over the life of the deal, with EBITDA up 255%
Acquisition by VeriFone gives Point access to all the capabilities of a global leader, while
VeriFone can take advantage of Point’s strong position in local markets
Investors
