In this episode of «Tu Dinero en Acción« we interview Olle Backman, CEO of Vitec Software (VITB:SS), a group specialised in the acquisition and development of vertical software companies (VMS) for various niches (energy, pharma, automotive, real estate, education…).
The company, founded in 1985 by Lars Stenlund and Olov Sandberg as a result of the energy crisis of the 1970s, was floated in 1999 at a share price of SEK 1.5.
In April 2024, the share price reached SEK 534, representing a compound annual growth rate (CAGR) of 26.7%, and also paying out 86 times the initial share price in dividends. Taking into account the dividends distributed, the initial investors in Vitec have multiplied their investment by more than 450 times over these 25 years (CAGR 27.8%).
This makes Vitec the only compounder we know of that has generated a compound interest in the range of Constellation (CSU:CN) or Judges Scientific (JDG:LN), but for longer.
The main topics we will address are:
- Origins of the company and Olle
- Vitec’s approach to other VMS such as Constellation Software
- M&A strategy and potential for the future
- Enova’s business, major acquisition of Vitec in the Netherlands in 2023
- Dilution and opportunistic capital increases vs. use of cash flow and debt
- Future plans: Where will Vitec and Olle be in 10 years?
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