Vertical market software

Vitec

Vitec's business idea is to acquire and develop market leading, vertical software companies in niche markets. These are normally restricted to certain geographies as the software can be hard to sell in some areas. The business strategy is a combination of making use of the M&A arbitrage from buying unlisted companies, rationalization and maximisation of current business, as well as geographical and market diversification. The company rather than the niche in which it operates is in focus when Vitec makes an acquisition.

Financials

Vitec

SEKm 2017 2018 2019
Sales 855 972 1021
Sales growth (%) 26,6 13,7 5,1
EBITDA 234 264 276
EBITDA margin (%) 27,3 27,2 27
EBIT adj 107 115 131
EBIT adj margin (%) 12,5 11,8 12,8
Pretax profit 98 100 110
EPS rep 2,66 2,64 2,84
EPS growth (%) 7,4 -0,7 7,9
EPS adj 2,66 2,64 2,84
DPS 1,1 1,2 1,3
EV/EBITDA (x) 12,6 11,2 10,5
EV/EBIT adj (x) 27,5 25,8 22,1
P/E (x) 32,7 31,6 29,2
P/E adj (x) 32,7 31,6 29,2
EV/sales (x) 3,4 3,1 2,8
FCF yield (%) -0,4 -2,5 4,6
Dividend yield (%) 1,3 1,4 1,6
Net IB debt/EBITDA 1,5 1,7 1,4