Bli medlem
Bli medlem

Du är här

2021-10-26

Lemonsoft is planning an initial public offering and a listing on the Nasdaq First North Growth Market Finland

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN PART OR IN WHOLE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

Lemonsoft Oyj (”Lemonsoft” or the ”Company”) today announces its intention to launch an initial public offering (the “IPO” or the "Offering") and to list its shares on the Nasdaq First North Growth Market (“First North”).

Lemonsoft is a Finnish SaaS company that designs, develops and sells ERP software solutions. The Company focuses on offering solutions mainly for small and medium sized enterprises (SMEs). The Company’s software solutions and services enable improved efficiency of customers’ business processes as well as cost savings through automation and digitalisation.

The objective of the IPO is to enable the Company’s First North listing and thus enable the growth and business expansion outlined by the Company’s strategy. The Company expects that the First North listing allows Lemonsoft to access a new channel for equity financing both from domestic and foreign investors, create liquidity for the Company’s shares and strengthen Lemonsoft’s recognition and brand awareness among customers, employees and investors. In addition, the Offering aims to broaden the Company’s ownership base with both domestic and foreign investors. The listing of the shares and increased liquidity would also help in using Lemonsoft’s shares more effectively as a means of consideration in potential acquisitions and in incentive programs for personnel.

The contemplated IPO is expected to consist of a share issue by the Company of approximately EUR 15 million (gross proceeds) and of a share sale by certain existing shareholders. The proceeds from the share issue are intended to be used to support Lemonsoft’s growth strategy including financing of acquisitions.

Ilmarinen Mutual Pension Insurance Company, Mandatum Asset Management Ltd, TIN Fonder, Aeternum Capital, Handelsbanken Fonder, ODIN Fonder, certain funds managed by Evli Fund Management Company Ltd, certain funds managed by entities owned by Aktia Bank Plc, Grenspecialisten, SEB Investment Management AB and certain funds managed by SP-Fund Management Company Ltd (together “Cornerstone Investors”) have, subject to certain ordinary conditions, committed to subscribing shares in the Offering, provided that the combined value of the Company’s shares before IPO proceeds does not exceed €201 million. Commitments by the Cornerstone Investors amount to €42.5 million in total.

Christoffer Häggblom, Chairman of the Board comments:

“Lemonsoft’s growth has been fast and its profitability excellent. Still, we find that the company has a wide array of completely new opportunities ahead of it. We expect that the market will grow significantly, and we want our growth to exceed the growth of the market. Therefore, now is the right time for Lemonsoft’s listing.
Lemonsoft’s strategy is to continuously invest in product development and new technologies to maintain its strong position compared to the competition and offer the best products and customer experience in the market. Acquisitions are also a central piece of the growth strategy. We firmly believe that the planned listing would further increase Lemonsoft’s abilities to make investments and achieve the long-term financial targets set by the Board of Directors.”

Kari Joki-Hollanti, CEO comments:

“We have already been able to succeed on multiple fronts during our history: fast and profitable growth, satisfied employees and a large amount of long-term customers from different industries. I believe that the planned listing increases Lemonsoft’s recognition and brand awareness and makes the Company even more attractive as an employer. As a listed company, we would also be able to use stock-based incentives to increase employee engagement and commitment.
At the core of all our operations is the desire to develop our products and services together with our customers. Our solutions enable our customers to have more time and resources to focus on their core business. We believe that efficiency is the prerequisite for growth. We are thrilled to be able to share this journey with new shareholders.”

About Lemonsoft

Lemonsoft is a Finnish software company that that designs, develops and sells ERP software solutions to streamline its customers’ processes across different business lines and administration. The extensive offering of software solutions and related services enables the Company to provide its customers with holistic service. The Company’s standardised and scalable software solutions are delivered mainly from the cloud and are based on the SaaS model in which customers pay a monthly service fee for the use of the software. As of the date of this press release, the Company’s customer base consists of over 6,600 customer companies using the Company’s software solutions, including customers from especially industrial manufacturing, wholesale and retail, professional services automation, construction and accounting.

Due to the extensive software offering and modern technology, the Company has succeeded in maintaining strong growth while simultaneously increasing its profitability. The average annual growth rate (CAGR) of the Company’s net sales was 20 percent between the financial years ended 31 December 2018 and 31 December 2020. At the same time, the Company’s adjusted EBIT margin increased from 27.1 percent to 32.6 percent between the financial years ended 31 December 2018 and 31 December 2020. Lemonsoft’s net sales was 13.6 million euros, adjusted EBIT 4.4 million euros and EBIT 3.9 million euros in the financial year ended 31 December 2020. Lemonsoft’s pro forma net sales was 17.4 million euros and pro forma adjusted EBIT 5.6 million euros (32.3 percent of net sales) in the financial year ended 31 December 2020.

The Lemonsoft Group consists of the parent company Lemonsoft Oyj and its subsidiaries Lixani Oy, Metsys Oy, PlanMill Oy and WorkIn Oy. The Company’s average head count was 123 employees in the nine month period ended 30 September 2021. The Company has operations in nine cities: Vaasa, Helsinki, Joensuu, Jyväskylä, Kouvola, Oulu, Tampere, Turku and Vantaa. From these offices, the Company caters to its customers all over Finland.

Strengths

The Company’s management estimates that particularly the following factors are the Company’s strengths:

  • SaaS company having grown quickly during its history with very strong key metrics across the board
  • Strong market position in the sizeable ERP market for SMEs
  • Comprehensive software solution for managing SMEs’ business critical processes
  • Strong growth prospects by increasing ARPC, acquiring new customers and releasing new products
  • Potential to continue the successful acquisition strategy

Strategy

The main goal of Lemonsoft’s strategy is to increase market share and penetration

  • by increasing the revenue from the Company’s current customer base;
  • by winning new customers;
  • by optimising pricing;
  • by growing the transaction business; and
  • by releasing new modules and solutions.

The strategic focus points are:

  • Product leadership - The Company will seek to be a product leader in the market of industry-specific ERP systems through continuous investment in product development and new technology to stay ahead of its competitors.
  • Customer experience leadership - The Company will seek to offer the best user experience in its market. By offering the best customer experience in the market, the Company will seek to keep its customers loyal and to generate growth from the Company’s current and new customers.


Financial targets and dividend policy

Lemonsoft’s target is to increase its net sales organically to EUR 40 million by the financial year ending 31 December 2025. This target excludes potential acquisitions, as acquisitions are difficult to predict. The Company aims to continue executing its active acquisition strategy.
In addition, Lemonsoft’s target is to increase its adjusted EBIT margin to 40 percent by the financial year ending 31 December 2025.
The Company will seek to carry out an active dividend policy, provided that profit distribution will not weaken the Company’s ability to achieve its targets set out in the Company’s growth strategy or other financial targets.

Lemonsoft’s key figures

During the financial year ended 31 December 2020, Lemonsoft’s net sales was 13.6 million euros and adjusted EBIT 4.4 million euros representing adjusted EBIT margin of 32.6 percent. The Company’s pro forma net sales was 17.4 million euros and pro forma adjusted EBIT 5.6 million euros.

The following table sets forth the key figures of Lemonsoft:


For the nine months ended 30 SeptemberFor the year ended 31 December

202120202020 (*20192018
(EUR in thousands unless otherwise indicated)(Unaudited unless otherwise indicated)
Net sales12,2849.93813.588 (****10.639 (****9.484 (****
Net sales growth, %23.6 %27.7 %27.7 %12.2 %19.8 %
SaaS9,2697,62810,3167,5596,268
Transactions786673956848586
Consulting and other2,2301,6372,3162,2322,631


Författare MFN