Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

Capgemini offers information technology services. The Company provides mobile software solutions, business process management, outsourcing, cloud computing, finance, consulting, supply chain management, engineering, and other services. Capgemini serves aerospace, defense, automotive, health care, life science, telecom, media, and entertainment industries worldwide.

<ul>
<li>BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   </li>
<li>We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   </li>
<li>The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.</li>
</ul>


BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   
We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   
The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.


Event-Driven

Fortnox AB provides internet-based business software programs for office applications including accountancy, bookkeeping, payroll, and invoicing.

<ul>
<li>Fortnox has announced a public tender offer from EQT and First Kraft for SEK90 per share, valuing the company at SEK54.9bn, representing a 38% premium over the last closing price.   </li>
<li>The Fortnox deal signals a recovery in Software M&amp;A activity in 2025. It highlights the growing trend of SaaS companies going private, following similar moves by other European SaaS firms.   </li>
<li>Despite the premium, some shareholders may be dissatisfied. Similar criticisms have arisen in other recent deals, but the offer might succeed due to Fortnox's outstanding stock market performance.</li>
</ul>


Fortnox has announced a public tender offer from EQT and First Kraft for SEK90 per share, valuing the company at SEK54.9bn, representing a 38% premium over the last closing price.   
The Fortnox deal signals a recovery in Software M&amp;A activity in 2025. It highlights the growing trend of SaaS companies going private, following similar moves by other European SaaS firms.   
Despite the premium, some shareholders may be dissatisfied. Similar criticisms have arisen in other recent deals, but the offer might succeed due to Fortnox's outstanding stock market performance.


European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

The Sage Group plc is a software publishing company. The Group develops, publishes and distributes accounting and payroll software for personal computer systems. Via its subsidiaries, Sage also maintains a registered user database which provides a market for their related products and services, including computer forms, software support contracts, program upgrades and training.

<ul>
<li>Sage launched its Copilot AI assistant automating accounting, HR and payroll tasks. This aims to roll out across all products by 2026. Sage plans to integrate AI agents into workflows. </li>
<li>The Sage Network platform connects accounting systems across businesses, facilitating automated workflows and real-time data integration. It enhances Sage Copilot’s capabilities and creates opportunities for migration to cloud-based solutions.</li>
<li>Sage's resilient business model, supported by subscriptions, positions it well in a challenging market. The company is focused on expanding its customer base through AI-powered solutions.</li>
</ul>


Sage launched its Copilot AI assistant automating accounting, HR and payroll tasks. This aims to roll out across all products by 2026. Sage plans to integrate AI agents into workflows. 
The Sage Network platform connects accounting systems across businesses, facilitating automated workflows and real-time data integration. It enhances Sage Copilot’s capabilities and creates opportunities for migration to cloud-based solutions.
Sage's resilient business model, supported by subscriptions, positions it well in a challenging market. The company is focused on expanding its customer base through AI-powered solutions.


Sage Group (SGE LN): The AI Strategy Is Taking Shape

Nemetschek SE provides standard software for designing, constructing and managing buildings and real estate. The Company offers software which provides cost estimation, design, planning, account calculation, cost management, facilities management, document management and B2B e-commerce capabilities. Nemetschek distributes its products around the world.

<ul>
<li>Nemetschek's share price has risen 17% since the FY 2024 pre-announcement, with management forecasting a 17-19% revenue increase for 2025, driven by growth in the Build division and Bluebeam subscriptions.  </li>
<li>It has made significant progress in its transition to subscriptions, with these accounting for 57% of revenue. This shift is expected to drive further growth, particularly in Design by 2027.   </li>
<li>Nemetschek is advancing towards becoming a software platform, with adoption of BIM and digital twins, alongside the integration of AI across its solutions to streamline workflows in AEC.</li>
</ul>


Nemetschek's share price has risen 17% since the FY 2024 pre-announcement, with management forecasting a 17-19% revenue increase for 2025, driven by growth in the Build division and Bluebeam subscriptions.  
It has made significant progress in its transition to subscriptions, with these accounting for 57% of revenue. This shift is expected to drive further growth, particularly in Design by 2027.   
Nemetschek is advancing towards becoming a software platform, with adoption of BIM and digital twins, alongside the integration of AI across its solutions to streamline workflows in AEC.


Nemetschek (NEM GR): Overdelivering on Promises

SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.

<ul>
<li>SAP launched SAP Business Data Cloud, a unified SaaS solution integrating structured and unstructured data, enhanced by Databricks' advanced AI and machine learning capabilities through a new offering, SAP Databricks. </li>
<li>SAP Business Data Cloud replaces SAP Datasphere and combines components like SAP Business Warehouse and SAP Analytics Cloud to address data silos and support AI-driven processes across business functions. </li>
<li>The partnership with Databricks enhances SAP's AI capabilities, improving access to unstructured data for GenAI applications and supporting SAP’s AI copilot, Joule, with plans to implement 400 AI use cases.</li>
</ul>


SAP launched SAP Business Data Cloud, a unified SaaS solution integrating structured and unstructured data, enhanced by Databricks' advanced AI and machine learning capabilities through a new offering, SAP Databricks. 
SAP Business Data Cloud replaces SAP Datasphere and combines components like SAP Business Warehouse and SAP Analytics Cloud to address data silos and support AI-driven processes across business functions. 
The partnership with Databricks enhances SAP's AI capabilities, improving access to unstructured data for GenAI applications and supporting SAP’s AI copilot, Joule, with plans to implement 400 AI use cases.


GR20 Research
Industry Research and Consulting Services

Capgemini (CAP FP): Back to BPO?

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

Gregory Ramirez

Sage Group (SGE LN): The AI Strategy Is Taking Shape

Sage introduces Copilot AI assistant for accounting, HR, and payroll tasks, aiming to integrate AI agents into workflows and expand customer base...

Gregory Ramirez

Nemetschek (NEM GR): Overdelivering on Promises

Nemetschek predicts 17-19% revenue rise in 2025. Transition to subscriptions expected to boost growth, aiming to become software platform with...

Gregory Ramirez

SAP SE (SAP GR): Entering the Lakehouse

SAP launches SAP Business Data Cloud with Databricks to unify structured and unstructured data, enhancing AI capabilities and addressing data silos.

Gregory Ramirez

Capgemini (CAP FP): Back to BPO?

​BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

European Software: Fortnox (FNOX SS) Going Private – Might Makes Right

​Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

Gregory Ramirez

Sage Group (SGE LN): The AI Strategy Is Taking Shape

​Sage introduces Copilot AI assistant for accounting, HR, and payroll tasks, aiming to integrate AI agents into workflows and expand customer base...

Gregory Ramirez

Nemetschek (NEM GR): Overdelivering on Promises

​Nemetschek predicts 17-19% revenue rise in 2025. Transition to subscriptions expected to boost growth, aiming to become software platform with...

Gregory Ramirez

SAP SE (SAP GR): Entering the Lakehouse

​SAP launches SAP Business Data Cloud with Databricks to unify structured and unstructured data, enhancing AI capabilities and addressing data silos.

Gregory Ramirez

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Fortnox receives public tender offer from EQT and First Kraft for SEK90/share, signaling a rebound in Software M&A activity. Some shareholders may...

Sage introduces Copilot AI assistant for accounting, HR, and payroll tasks, aiming to integrate AI agents into workflows and expand customer base...

Nemetschek predicts 17-19% revenue rise in 2025. Transition to subscriptions expected to boost growth, aiming to become software platform with...

SAP launches SAP Business Data Cloud with Databricks to unify structured and unstructured data, enhancing AI capabilities and addressing data silos.