Swedish investment company Partinc Capital AB has bought shares for SEK 30 million in SaaS company TIE Kinetix N.V, we have learned this morning. TIE Kinetix, which is listed on the Amsterdam Stock Exchange (Euronext: TIE), develops systems to streamline the transfer of business documents between different organizations.
TIE Kinetix offers a software-based system located in the cloud. With the help of TIE Kinetix’s systems, businesses can quickly and easily transfer different types of business documents such as invoices, orders, and order confirmations to authorities, customers, and suppliers.
TIE Kinetix is tapping into the digitalisation trend
The trend in global supply chain communication is towards 100% digitalization. Many European governments are launching initiatives in this field. With its EDI and 100% digitalization offerings, TIE Kinetix has a strong position in this rapidly growing market.
The COVID-19 pandemic only underscores the need for efficient digitalized communication in supply chains. TIE Kinetix has customers such as the Municipality of Amsterdam, Bunzl, Revlon, and an additional 2,500 accounts. TIE Kinetix is Partinc Capital’s first investment in the Netherlands.
“I have followed TIE Kinetix for many years, first as a global business partner and the last three years as a board member and am very pleased that we have now reached this investment,” said Per Nordling, Partner and Chairman of Partinc Capital. “TIE Kinetix, with its SaaS offering, addresses a very interesting market. This, combined with being well-established in several major geographic markets such as the U.S., Germany, France, and the Netherlands, makes us very positive about the future.”
The share price of TIE Kinetix has been relatively rangebound since it rallied off €14 last Christmas. It peaked around €25 in May of this year. Since then the stock has been trading in the €20-24 range. The company enjoys strong institutional backing, according to data from Stockopedia, but it is unclear what sort of backing it gets from private investors.
“With Partinc Capital’s investment, we get another new international partner who has extensive experience in driving growth in SaaS companies, which is very positive at the stage that the company is at,” said Michiel Wolfswinkel, CFO, TIE Kinetix.
Partinc Capital is a Swedish investment company that focuses on investments in SaaS companies that deliver software services for business-to-business (B2B) relationships. The fund manager works with its operational experience close to its portfolio companies. The company has offices in Sweden and the Netherlands and it is primarily in these markets that it makes its investments.
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Shares are starting to look a little expensive
The rise in the TIE Kinetic stock price back in May has started to make the company look a little more expensive, with a 12 month trailing PE ratio of 62.9, but bear in mind it is trading in the technology sector where valuations are simply on a different level these days. The pandemic has harmed revenues slightly, which are down on where they were in 2016-17, but we would expect this to pick up going into 2022.
TIE Kinetix reported IFRS revenues, which the company announced 17 November, as down from €15.5m to €14.85m. This was due to its divestment of TCMA. Earnings per share has increased substantially, however, from €0.04 to €0.38.