• Oaklins & Alexander Hutton

Growth Continues for the Enterprise SaaS Sector


Having weathered the worst of the COVID-19-induceddownturn, share prices of SaaS companies have surged in the Nordic stock market, driven by increased demand for cloud-based software solutions. For nearly 10 years, equity investment in the sector had steadily risen to new levels. But then the public SaaS market wobbled during the first half of the year 2020, along with all other sectors, when valuations initially plunged. By June, though, the share prices for publicly traded firms had returned to their former highs, as Nordic SaaS companies demonstrated an ability to maintain both their growth and their profitability in the face of the pandemic.

What's behind the surge in Nordic SaaS share prices? Oaklins' enterprise SaaS specialist Alpo Luostarinen explains why equity investment in the sector continues to scale new peaks, even in the face of the pandemic.

"The software market has transformed dramatically within the past decade, and nowhere more so than in the Nordics, where a large number of high-growth SaaS providers have emerged. This is evident in the M&A market, as well as the region's initial public offering (IPO) market. where during the past five years there have been over 30 IPOs for SaaS companies."

We examine what makes the SaaS model so resilient, and interview CEOs of two companies that sailed through the COVID-19 storm: eSmiley, the Nordic region’s leading supplier of digital management solutions for professional kitchens; and LeadDesk, an internationalizing software company operating in the cloud-based software market in Europe.

Continuing to focus on the Nordics, we reveal the rationale behind selected transactions and while our clients explain the role Oaklins played in ensuring they got the best deal to take them to the next level. And we leave you with a summary of recent transactions to let our global track record speak for itself.

For the full version of the Enterprise SaaS Spot On report click the link below!

Oaklins Enterprise SaaS Spot-On Feb2021
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