CSAM Health Group

Priveq acted as an important partner on CSAMs growth journey

When CSAM Health was looking for a minority partner to continue their acquisition-based growth strategy, Priveq identified the opportunity to invest in a business sector with substantial growth opportunities; e-health. Priveq's experience of acting as a growth partner, with a track record of geographical expansion as well as acquisitions was well suited to CSAM's needs. '

CSAM Health was established when the Oslo University Hospital in Norway was about to move to a new location in Oslo, and the need for securing transition of the hospital's some 3000+ IT systems was imminent. The project was henceforth commercialized, the company set up as private for profit and a management buyout was performed. CSAM quite quickly became a leading supplier of e-health to the healthcare systems in Norway and Sweden, offering software to care givers in Norway, Sweden, and UK, with focus on maternity care and cancer, also offering a platform for collaboration and integration of e-health software in general.

E-health is both topical and important

Within the e-health sector the customers are heavily supplier dependent, i.e., rarely change supplier, and hence acquisitions are needed to reach above market growth levels. In 2014, management had successfully made two acquisitions and was now looking for a minority partner to continue growing the CSAM business.

Priveq was attracted by characteristics of the e-health sector; being both topical and of utterly importance. We were impressed by CSAM's success within their field, Louise Nilsson, Partner and Investment Manager at Priveq says.

"E-health is an exciting area. Within the care sector, manual routines and processes are still quite common, with high dependency on hospitals, doctors, or nurses. Using IT as a component, you can both raise care quality and minimalize the risk of human error. Our view was that higher efficiency was reached by using CSAM's solutions, which was why we were keen to join the company for the journey ahead," Louise continues.

Clear goals for growth

During spring of 2014, Priveq became a minority partner in CSAM, and the growth plan was clear. CSAM would go from being a Norwegian consultancy and software company with software in two verticals, to a Nordic e-health company with a higher share of software revenues and with applications in multiple verticals.

In order to expand faster they needed to make acquisitions, and with Priveq the company got help to find and evaluate acquisitions and strategically suitable vertical markets in which to invest. However, the journey together began unsteadily when CSAM lost an important procurement. A speedier transition to a pure software company became necessary with adjustments to the cost base. Acquisitions were evaluated and implemented at a controlled pace, and after several years the company had a platform with well-diversified operations across the Nordic countries. In addition, more verticals had been added, and a significantly higher share of recurring revenue from software. During this collaborative growth journey with Priveq, a total of ten acquisitions were made.

"The journey with CSAM was not straightforward – it was a roller coaster affected by various external factors. Together we experienced both setbacks and successes, and our partnership was put to the test, but it only made us stronger in our partnership. Since we knew we had good management in place, we could simply learn from our setbacks and look ahead," Louise explains.

IPO led to new opportunities

In 2020, the owners decided to jointly take the next step in CSAM's development – both to raise new capital for continued growth through acquisitions and to offer more investors the opportunity to participate in CSAM's continued journey. The result was a bond issue and a listing on Euronext Growth in Oslo. The management, who were also the main owners of the company, wanted to continue being significant owners for the future, while it suited Priveq well to offer shares to new investors. This way, they could achieve a desirable distribution of shares.

"I believe strongly in CSAM. I know there are many software companies in this sector that are too small to be successful long-term on their own, and CSAM can be a good alternative. Now they have taken the first step outside the Nordics and with a driven and well-coordinated management team, I believe they have great potential to reach their goals," Louise concludes.

Priveq remained as owner for about a year after the listing, before handing over the baton to new investors. And it's clear that the partnership that Priveq valued highly has had a major impact on CSAM.

"At Priveq we have found an active and genuine partnership that has been tested in both fair and foul weather, making it exceptionally strong," says Sverre Flatby, CEO of CSAM.

"We have had very positive experiences from working with Priveq and see that it continues even after Priveq has left CSAM's ownership group," adds Einar Bonnevie, CFO of CSAM.