Advent Sells KMD Holdings To NEC For $1.2B

KMD, the software and information technology services company owned by Advent International was sold to NEC in late December for 8 billion Danish kroner or $1.2 billion.

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The deal, which NEC said will accelerate its global safety business, marks an exit for famed private equity firm Advent International, which has investments in software companies across the globe.

KMD is a leading player in the Software-as-a-Service market in Denmark, where it counts local and central governments among its customers. It is also playing a big role in digitizing Denmark and under Advent’s charge is known to engage in mergers and acquisitions to expand its offerings.

“Denmark and the United Kingdom are considered European role models for the implementation of unified digital government measures in order to improve administrative services and reduce costs,” said Takashi Niino, President and CEO of NEC Corporation in a press release at the time. “Through this acquisition, NEC will acquire a business model that leverages platforms in the digital government domain as it aims to expand business from northern Europe to the whole of Europe and globally.”

KMD described the deal as a “historic moment” in which the company will be able to continue to develop its business. “NEC develops ground-breaking technologies and the company has a global organization with considerable competencies and possibilities,” said KMD Chief Executive Eve Berneke in the recent press release. “NEC is known all over the world and, like KMD, has a strong tradition of developing society through new technology.”

For Advent International, which acquired KMD in October of 2012, the sale undoubtedly made the PE firm a profit given KMD had revenue of $747.5 million back in 2011. The purchase price was never disclosed but KMD has been able to grow since then. It also marks an exit for a PE firm that has been setting its sights on the SaaS market in recent months.  Take its move in March when it announced it closed on its acquisitions of Clearnet and FieldEdge, merging the two and taking a majority stake in the combined company, as one example.

During the past decade Advent, which was founded in 1984 and is one of the biggest global PE firms, has invested $2.5 billion in six platform companies in the payments industry and $3.1 billion in six software companies. Some of its software investments include CCC Information Services,, P2 Energy Solutions, Skillsoft, and Unit4.