e-conomic, one of Europe’s leading SaaS (Software as a Service) accounting solutions provider backed by private equity investor HgCapital, and CE Consulting Empresarial (‘CE’), a leading Spanish provider of business advisory services with a nationwide network of accountancy offices, have established a new Spanish joint venture.
HgCapital acquired e-conomic in mid 2013 in an off-market transaction. HgCapital’s investment in e-conomic is in line with HgCapital’s sector-focused approach of supporting leading growth mid-market companies in the European SMB software sector.
The JV supports HgCapital’s ambitions for e-conomic – to create a European industry champion providing cutting edge accounting and other SMB focused software solutions. This deal gives CErights to the market development and commercial distribution of e-conomic’s software solutions in Spain, providing e-conomic with an immediate and extensive distribution network in the Spanish market and access to CE Consulting’s 13,000 SMB customers.
e-conomic’s cloud-based products are specifically tailored for small and medium-sized businesses (‘SMB’s), bookkeepers and accountants. Its products enable its customer base to do their accounting more efficiently over the internet in real time collaboration with their accountant turning what can be a time consuming complex chore into a far quicker, simpler process.Companies get access to the software via a low monthly subscription fee. The pricing model requires no license fee or upfront investment and is therefore attractive for startups and small businesses. e-conomic’s internet-based solutions help consultants, SMBs, freelancers and accountants deal with the speed of technological change and adapt to the new circumstances of the present and prepare for those to come in the future.
The deal will allow e-conomic to further capitalize on the trend of companies moving towards cloud-based solutions as their advantages in terms of speed, flexibility and future-proofing become more widely understood. e-conomic’s products mean that accountants can standardise and even automate processes, allowing them to focus on counselling and advising their clients, providing better customer service and helping them to builld more valuable long-term relationships.
Celstino Suero, CEO of CE Consulting Empresarial Spain, said
"e-conomic’s cloud-based accounting solutions redefine how accounting advice is given in the 21st century. It is the technology partner that advisors, consultants and companies need to take that quantum leap to streamline their business process, save time and offer better services to customers. With e-conomic’s products, accountants will be up to date on the company’s developments and be able to advise customers proactively in real time from anywhere. We are confident that our extensive network will provide a significant new customer base for e-conomic which will benefit both parties."
Mogens Elsberg, CEO of e-conomic, said:
“We are very excited about the partnership with Celestino and CE Consulting. With over 120 offices in Spain and providing advisory services to professional bookkeepers and 13.000 small and medium sized businesses, we see CE Consulting as the ideal partner in our goal to become one of the leading accounting solution providers in Spain within a few years. We share the same ideas and ambitions and there are a lot of synergies to develop. That gives us the possibility to set new standards in Spain within the accounting and financial services industry.”
Nic Humphries, CEO of HgCapital said:
“This partnership represents an exciting development in our strategy for e-conomic’s geographical expansion into new markets, building on its already strong pan-European footprint. There is significant potential for growth in the international SMB SaaS bookkeeping market in the coming years and e-conomic is well positioned to become the sector leader that best capitalizes on this clear trend for SMBs to take greater control over their bookkeeping via the internet.”
About CE Consulting Empresarial
Empresarial has over 25 years’ experience in providing advisory services to businesses and professionals in all economic sectors. It is a leading consultancy in Spain, with more than 120 domestic offices and 12 international offices in Europe, and Latin America, with more than 500 professionals and more than 13,000 SMB customers.
e-conomic (www.e-conomic.com), founded in 2001 in Copenhagen, is a leading European SaaS accounting solution provider for small and medium-sized businesses with >80,000 customers for its core product e-conomic, and >240,000 sign-ups for its invoicing, expense and accounting light product Debitoor (www.debitoor.com). e-conomic offers an easy to use, time saving and collaboration enabling accounting solution to a fragmented and low penetrated base of SMEs and accountants (>3,500 accounting partners) via a SaaS subscription model. The company operates in its core home market of Denmark and serves customers across numerous other European countries, including Norway, Sweden, Spain, Germany and UK. Its freemium product Debitoor is used in >40 countries globally. e-conomic is owned by the private equity fund HgCapital.
HgCapital is a sector expert private equity investor, supporting management teams to grow industry champions. Deeply resourced sector teams focus on specific sub-sectors and investment themes to identify companies occupying an established position within a niche, and which have the potential to grow faster than their market, create employment and become the leader in their industry. HgCapital’s dedicated portfolio management team provides practical support to management teams to help them realise their growth ambitions. HgCapital invests in expanding segments of the TMT, Services, Industrials and Renewable Energy sectors across Western Europe. Based in London and Munich, HgCapital manages more than £5 billion for some of the world’s leading institutional and private investors. For further details, please see www.hgcapital.com