Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Event-Driven

<ul>
<li>Fortnox has announced a public tender offer from EQT and First Kraft for SEK90 per share, valuing the company at SEK54.9bn, representing a 38% premium over the last closing price.   </li>
<li>The Fortnox deal signals a recovery in Software M&amp;A activity in 2025. It highlights the growing trend of SaaS companies going private, following similar moves by other European SaaS firms.   </li>
<li>Despite the premium, some shareholders may be dissatisfied. Similar criticisms have arisen in other recent deals, but the offer might succeed due to Fortnox's outstanding stock market performance.</li>
</ul>


Fortnox has announced a public tender offer from EQT and First Kraft for SEK90 per share, valuing the company at SEK54.9bn, representing a 38% premium over the last closing price.   
The Fortnox deal signals a recovery in Software M&amp;A activity in 2025. It highlights the growing trend of SaaS companies going private, following similar moves by other European SaaS firms.   
Despite the premium, some shareholders may be dissatisfied. Similar criticisms have arisen in other recent deals, but the offer might succeed due to Fortnox's outstanding stock market performance.


European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Fortnox AB reported strong results for the first quarter of 2025, highlighting its robust growth potential and strategic focus despite a challenging macroeconomic environment.</li><li>The company achieved noteworthy financial performance, with a 25% organic growth in revenue and a 33% increase in EBIT, demonstrating the strength of its business model.</li><li>Revenue growth reached 21%, and when adjusted for acquisitions and divestitures, the organic growth rate was 25%.</li></ul>

Fortnox AB reported strong results for the first quarter of 2025, highlighting its robust growth potential and strategic focus despite a challenging macroeconomic environment.The company achieved noteworthy financial performance, with a 25% organic growth in revenue and a 33% increase in EBIT, demonstrating the strength of its business model.Revenue growth reached 21%, and when adjusted for acquisitions and divestitures, the organic growth rate was 25%.

Fortnox: Initiation of Coverage- Is This Diversified SaaS Powerhouse the Future of Nordic Business Platforms?

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>EQT and First Kraft’s SEK 90 per share bid values Fortnox at SEK 54.9 billion, offering a 38% premium and reflecting confidence in Fortnox’s high-growth, high-margin SaaS model.</li>
<li>Fortnox’s Board, supported by a fairness opinion, unanimously recommends the offer. Olof Hallrup’s 18.9% stake is committed, making competing bids highly unlikely.</li>
<li>The current gross spread is 4.36%, offering an estimated annualized return of 20.1% to arbitrage investors, assuming a purchase at SEK 86.24 and settlement by late June.</li>
</ul>


EQT and First Kraft’s SEK 90 per share bid values Fortnox at SEK 54.9 billion, offering a 38% premium and reflecting confidence in Fortnox’s high-growth, high-margin SaaS model.
Fortnox’s Board, supported by a fairness opinion, unanimously recommends the offer. Olof Hallrup’s 18.9% stake is committed, making competing bids highly unlikely.
The current gross spread is 4.36%, offering an estimated annualized return of 20.1% to arbitrage investors, assuming a purchase at SEK 86.24 and settlement by late June.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>At a zero net debt zero net cash (securities liquidated) Adjusted Price/Earnings Ratio of 11.3x expected Net Income, the multiple offered <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine (6135 JP)</a> is not a knock-out.</li>
<li>
<a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> investors hoping for a clean (er) exit, or where the back-end terms were clearly defined, will be disappointed. And minorities are active in this name. Avoid</li>
<li>New Trump Tariffs are not based on any actual tariffs, or non-tariff measures. The simple/explicit assumption is that if you run a trade surplus with the US, you are cheating.</li>
</ul>


At a zero net debt zero net cash (securities liquidated) Adjusted Price/Earnings Ratio of 11.3x expected Net Income, the multiple offered Makino Milling Machine (6135 JP) is not a knock-out.

ENN Energy (2688 HK) investors hoping for a clean (er) exit, or where the back-end terms were clearly defined, will be disappointed. And minorities are active in this name. Avoid
New Trump Tariffs are not based on any actual tariffs, or non-tariff measures. The simple/explicit assumption is that if you run a trade surplus with the US, you are cheating.


Last Week in Event SPACE: Makino, ENN Energy, Trump Tariffs, HKBN

Sweden

Fortnox AB provides internet-based business software programs for office applications including accountancy, bookkeeping, payroll, and invoicing.

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Fortnox (FNOX SS)

European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

Gregory Ramirez

Fortnox: Initiation of Coverage- Is This Diversified SaaS Powerhouse the Future of Nordic Business Platforms?

Fortnox AB reported strong results for the first quarter of 2025, highlighting its robust growth potential and strategic focus despite a...

Baptista Research

Cloud Control: EQT Logs In to Fortnox

EQT and First Kraft offer SEK 90 per share for Fortnox, reflecting confidence in high-growth SaaS model. Board recommends offer, making competing...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Makino, ENN Energy, Trump Tariffs, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Price Gauge

52-week Range

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European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

​Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

Gregory Ramirez

Fortnox: Initiation of Coverage- Is This Diversified SaaS Powerhouse the Future of Nordic Business Platforms?

Fortnox AB reported strong results for the first quarter of 2025, highlighting its robust growth potential and strategic focus despite a...

Baptista Research

Cloud Control: EQT Logs In to Fortnox

​EQT and First Kraft offer SEK 90 per share for Fortnox, reflecting confidence in high-growth SaaS model. Board recommends offer, making competing...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Makino, ENN Energy, Trump Tariffs, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

EQT and First Kraft offer SEK 90 per share for Fortnox, reflecting confidence in high-growth SaaS model. Board recommends offer, making competing...