INVESTMENT Case
Hoist Group
Hoist Group provides technology solutions to hotels, enabling them to manage coherent end-to-end digital journeys for their guests. Hoist Group optimises guest services by correlating and analyzing the data that comes from its innovative Property Management & Booking Software, Managed IP Networks, Internet and TV as well as from many other digital touchpoints.
As a result of several strategic and operational improvements, including five important add-on acquisitions and development of proprietary software and technology, turnover and EBITDA more than tripled during Accent Equity's ownership period.
As a result of several strategic and operational improvements, including five important add-on acquisitions and development of proprietary software and technology, turnover and EBITDA more than tripled during Accent Equity's ownership period.
Industry:
Hospitality technology and software
Type of investment:
Succession capital
Investment theme:
International expansion, selective add-on acquisitions
Entry/exit:
2011/2021
Accent Equity IV (2008) invested in Hoist Group in 2011 together with its founder. Hoist Group's main business at the time comprised sales of TV systems and guest content to independent hotels and hotel chains in the Nordics. Initially, operations also included the ventilation installation business Hoist Energy, which was subsequently carved out into a separate group to allow each business area to attain the appropriate management focus and a dedicated value creation plan.
The value enhancement thesis for Hoist Group at Accent Equity's entry comprised (i) international expansion together with existing and new customers, (ii) increasing share-of-wallet by selling additional products already in Hoist Group's portfolio to existing customers (e.g. Wi-Fi, and booking and back office systems), (iii) increasing share of recurring revenue by focusing on rental agreements and customer financing (through third party financing providers), (iv) selective add-on acquisitions, and (v) strengthening of corporate infrastructure.
The value enhancement thesis for Hoist Group at Accent Equity's entry comprised (i) international expansion together with existing and new customers, (ii) increasing share-of-wallet by selling additional products already in Hoist Group's portfolio to existing customers (e.g. Wi-Fi, and booking and back office systems), (iii) increasing share of recurring revenue by focusing on rental agreements and customer financing (through third party financing providers), (iv) selective add-on acquisitions, and (v) strengthening of corporate infrastructure.
Key initiatives and results during Accent Equity's ownership
- Developing Hoist Group from a Nordic hotel supplier into the EMEA market leader within hospitality software and technology
- Organic growth through adding new markets and continuous product development, enabling up-selling and increasing the number of products sold to each customer
- Several key add-on acquisitions (including Locatel, Swisscom Hospitality, Paragon, Hotel Engine and Acentic) have also contributed to Hoist Group's transformation from a Nordic hotel supplier of mainly TVs into the market leader in EMEA within hospitality software and technology
- Strategic development of proprietary software, that is crucial for hoteliers' day-to-day operations and is integrated into the company's technology solutions, has enabled Hoist Group to establish itself as the go-to partner for both independent hotels and international chains
- Increasing the share of contractually recurring revenue and earnings thanks to longstanding customer relationships and a compelling customer value proposition. Hoist Group managed to increase earnings also in 2020 despite being a very challenging year for the hospitality sector in general
- Several key recruitments to strengthen the management team and enable improved corporate infrastructure
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I and the rest of the management team are thankful for the relentless support from Accent Equity, which has contributed to Hoist Group's fantastic development over the last ten years. We now look forward to the next phase in the company's development together with Advent International.
Exit rationale and process
Accent Equity was approached by a consortium led by Advent International, a global private equity investor, and divested Hoist Group following a bilateral process.
Strong buyer rationale – Hoist Group would become a dedicated software company (with the hardware and guest content business – Infrateq – carved out) and form part of a global integrated software and payments services provider together with Planet (owned by Advent International and Eurazeo)
Exit timing deemed to be very good as Hoist Group performed better than expected during the pandemic and had a strong outlook considering the reopening of the markets. The Accent Equity fund was also approaching maturity and Hoist Group was the last remaining active investment.
Accent Equity was approached by a consortium led by Advent International, a global private equity investor, and divested Hoist Group following a bilateral process.
Strong buyer rationale – Hoist Group would become a dedicated software company (with the hardware and guest content business – Infrateq – carved out) and form part of a global integrated software and payments services provider together with Planet (owned by Advent International and Eurazeo)
Exit timing deemed to be very good as Hoist Group performed better than expected during the pandemic and had a strong outlook considering the reopening of the markets. The Accent Equity fund was also approaching maturity and Hoist Group was the last remaining active investment.