M&A Hugin Profile

Hugin ASA Euronext Acquires Hugin ASA, while being acquired by NYSE

Complex deal spans multiple parties, countries and currencies

ugin ASA, based in Norway, is and helping these firms comply with Hone of Europe’s leading providers regulations regarding timely, simultaneous of investor- and customer-related communications and disclosure. About communications. Its mission is to help Founded in 1995 by former McKinsey the name its corporate clients communicate with consultant Karl-Christian Agerup and Ingar their investors and customers. Hugin’s Ostby, an investor and industry veteran “Hugin” activities include hosting client Investor (see Northzone sidebar on back page), Relations (“IR”) Websites, distributing press Hugin was one of the first IR firms in In Norse mythology, Hugin (‘thought’) releases, e-mails, faxes, video and other Europe to embrace the Internet. Over and Munin (‘memory’) were two forms of corporate communications time, they spread their wings beyond ravens belonging to the god Odin. on behalf of more than 1,200 client listed companies to help privately Every morning Odin sent forth the companies in 12 European countries, owned firms better communicate with ravens and they would fly over the their core constituencies. By 2006, face of the earth. At night, they would Hugin was serving clients through offices return and sit on his shoulders to in Belgium, Denmark, Finland, Germany, recount what they had seen and heard. the Netherlands, Norway, Sweden, Switzerland and the UK. But the landscape was changing. The “It was a complex undertaking,” European Union, as well as many of its explains Ken Marlin, M&A’s managing member countries, had implemented partner. “Hugin was in the midst of regulations requiring increased financial transforming itself from a firm focused disclosure and transparent information solely on investor relations to one with disclosure by publicly listed companies. an expanded scope of IR and PR This meant increased demand for services. At the same time, it was Hugin’s services. It also spurred industry transitioning from being primarily a consolidation, as competitors sought to Nordic firm to one with pan-European increase their share of an attractive customers and capabilities.” Further, at market. Not surprisingly, Hugin attracted the time Hugin engaged M&A to look interest from several potential buyers. at a range of strategic alternatives, After negotiations with one potential they were in the process of digesting buyer ended unsuccessfully, Hugin’s Directnews, a recent acquisition based “M&A’s approach and skill owners recognized the need for in Germany. throughout this very complex professional guidance. Geography was another complication. process produced many bids “We selected Marlin & Associates Norway-based Hugin was potentially and helped us get the best (M&A) as our exclusive strategic and attractive to partners from the UK, France, partner and deal.” financial advisor because of their Sweden, Canada, the U.S. and more. — Karl-Christian Agerup, Co-founder, industry and international experience, M&A helped organize and conduct Hugin ASA and Northzone Ventures commitment of senior resources and a disciplined process, including realistic perspective,” says Karl-Christian. management presentations with qualified prospects in Norway, Denmark, Companynews; Hugin’s CEO, Tor Germany, London and New York. Baekkelund, was named to lead the Euronext, the pan-European exchange, combined entity. was among them. “M&A’s approach and skill throughout Through its earlier acquisition of this very complex process produced Paris-based Companynews, Euronext many bids and helped us get the best already had strong corporate news partner and deal,” says Karl-Christian. distribution positions in France, Italy, “We are very pleased with the outcome. Portugal and Spain—markets highly Euronext is a great brand and a long- complementary to those of Hugin. But, term owner that will maintain Hugin’s getting a deal done with Euronext added leadership in this industry.” Ⅵ another level of complexity. The decision- makers for Euronext were in Portugal Hugin's activities include hosting client Investor Relations Websites. and France; their finance and legal teams were in the Netherlands and they engaged additional advisors in Norway. Further, the strategic fit with Euronext came in part because it Northzone Ventures owned Companynews, and that meant involving their management as well. With three successful start-ups under their belts, Karl-Christian Agerup and Ingar To further complicate matters, in the Ostby co-founded Northzone Ventures to capitalize on their beliefs in Nordic midst of the process, it was announced technology, the need for competent venture funding and a desire to help that Euronext was in negotiations to other entrepreneurs. be acquired by the New York Stock Since its inception in 1996, Northzone has emerged as one of Europe’s leading Exchange. VCs and the largest early stage technology investment team in the Nordic region. Despite this complex and challenging The firm has raised and invested over US $500 million in more than 50 start-ups. environment, within seven months after One of those was Marlin & Associates’ client Hugin ASA, a firm Karl-Christian co- engaging M&A, Hugin was acquired founded that became one of Europe’s leading distributors of investor- and customer- by Euronext and merged with related communications. Today, Northzone has nine general partners and support staffs in Stockholm, Oslo and Copenhagen and is engaged with 20 technology companies. To work with Northzone is to work with seasoned, high-energy VC “We selected Marlin & professionals, dedicated to building great companies, who like to work closely Associates as our exclusive with their portfolio companies. strategic and financial advisor “We have a passion for building companies,” says Karl-Christian. “We look because of their industry and for firms with excellent management, in large, growing markets—preferably international experience, global companies with strong product acceptance, 10 times investment commitment of senior resources opportunity and a business model that scales well. and realistic perspective.” Karl-Christian’s prescription for a successful transaction: start early, make sure you reach your numbers and think carefully before you get exclusive with one buyer. And he added one more thing: “I highly recommend using an experienced advisor.”

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