SmartCraft continues to raid the Nordic market for software companies aimed at construction, electrical, plumbing and now contractors.
The company, which until recently went under Cordel Norden and has the PE player Valedo Partners behind it, has made six acquisitions and tripled its turnover from NOK 75 to 219 million in the last three years.
Homerun will be part of the company’s fast-growing portfolio, which is in use by 8,900 customers and 100,000 craftsmen in three countries.
– It is a great solution that well complements the software we already have, says CEO Gustav Line in SmartCraft.
Replaces pen and paper
Homerun develops software for rehabilitation projects and new buildings where the contractor can offer the residents a digitized optional solution as a replacement for pen and paper.
– Users can participate and decide the specifications they want. All the information enters directly into the systems and supports the communication between owners and users, says Line.
Together with Rørweb, El-Vis, Congrid and Bygglet, Homerun will be part of SmartCraft’s pure software platform for contractors and craftsmen. 93 percent of the group’s revenues are recurring software revenues (ARR), which last year gave an EBITDA margin of 38 percent – up 53 percent from 2019.
Silence about the price
SmartCraft has ambitions to become a dominant software supplier in the mentioned industries, and in recent years has acquired companies for several hundred million kroner.
Line does not want to go out with the price, but says the company typically operates with multiples of 2 to 5 times ARR, with settlement in cash. Homerun had around 10 million in turnover last year.
Homerun previously collaborated with Congrid in the Finnish market, where it also has an existing integration from before. The plan now is to expand the solution to more of SmartCraft’s customers.
– It is a good solution we believe we can sell to some of our existing customers and increase the service offering. In addition, we are increasing our pressure in Finland by two companies, in addition to the two we have in Sweden and the company we have in Norway, says Line.
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