Nordic Application Software Benchmark Report

Together with our Globalscope partner Silverpeak, Impello has for the second time published the “Nordic Application Software Benchmark Report”. The report is a updated review of key company valuation metrics in the Nordic, UK, European and US markets. The report reviews the development from 2015 to Q1 2021.

Our data for 378 publicly listed application software companies show that the Nordic software companies in Q1 2021 are valued at a median EV/Revenue multiple of 8.7x, compared to 9.4x in the US and only 4.1x and 3.9x in UK and Rest of Europe.

– Even though the US still observe the highest revenue multiples, the Nordics has strong growth and has nearly closed the gap over the recent years, says Bjørnar Reitan, partner at Karabin Impello.

With a median EV/EBITDA multiple of 34.4x the Nordics report a higher multiple than the US (28.9x), and stronger multiples compared to UK and Rest of Europe with 28.5x and 19.3x. Our analysis shows that there was a correction in EBITDA multiples in Q1 2021 for all regions except for the UK which continued a positive trend.

– There are several interesting findings in our report, and I would especially like to highlight the strong and positive development in the number of Nordic software companies. The massive growth of 242 % since 2015 proves that the Nordic market is gradually succeeding in producing highly attractive software companies with an international reach, says Reitan.

– We have chosen to profile one particular Nordic listed company in each report going forward, and in this report we profile the Norwegian company Sikri Holding AS which was listed on Euronext Growth Oslo Stock Exchange in July 2020. Their ambition is to build the leading ecosystem for public administration, proptech, data and analytics within the Nordics, and shows very strong growth both organic and through several acquisitions. In Q1 2021 they traded at EV/Revenue 8.8x and EV/EBITDA 31.4x, says Bjørnar Reitan.

Impello and Silverpeak will continue to monitor and make visible the development in the Nordic markets on a quarterly basis.

Read the complete report here.