Together Hg and itm8 have more than doubled the size of the business, creating a leading SME technology provider in Europe.

Herning, Denmark and London, United Kingdom. 18 May 2022. Hg, a leading software and services investor, today announces that it has agreed the sale of itm8, a leading supplier of IT services for private businesses and the public sector in Europe, to Axcel, a Nordic private equity fund.

Today itm8 has a team of more than 1,100 IT experts, supporting more than 4,200 customers within four business-critical areas: Cloud Services, Digital Transformation, Application Services and Cyber Security.

itm8 (formerly IT Relation) has more than doubled in size since Hg first invested in 2018, as measured by revenues, employees and the size of its customer base.

Hg’s focus and expertise in the SME Technology Services sector in Europe has supported itm8’s growth by identifying and implementing several strategic initiatives. These include supporting the acquisition of 13 businesses to the group, all significantly adding to itm8’s customer offering, enabling itm8 to complete an end-to-end offering to serve larger customers more effectively.

“Hg have been a valued partner who, with their extensive knowledge within IT services, have contributed to the scaling and professionalisation of our fast-growing company. It has been a great pleasure to work with the whole team. We wish the team all the best for the future.”

Henrik Kastbjerg, CEO of itm8

“We wish the itm8 team well after what has been a truly effective and enjoyable partnership. For many years we had seen a clear opportunity to develop a high quality, single scale provider which could deliver a wide set of services to SMEs in the cloud. Henrik and his team had built an exceptional business to do this and there was a clear opportunity to scale. It’s been hugely satisfying to achieve this, and we are delighted that the business will continue to thrive with a new strategic partner.”

Nick Jordan, Partner at Hg

Hg’s investment in itm8 was consistent with Hg’s focus on SME Technology Services in Europe, with other activity in this sector including investments in Zitcom (2015), Register (2017) and (2019), all providers of online hosting services to SMEs.

The terms of the transaction have not been disclosed and completion is subject to customary closing conditions.