By: Fredrik Näslund, Partner, NC Advisory AB, advisor to the Nordic Capital Funds
As a leading private equity investor in the Nordics, being alert to investment opportunities that will deliver outstanding returns for Nordic Capital’s investors is part of the everyday job. So, for us, Cint posed a very interesting investment prospect as a major global player in the insights data collection technology market. Undoubtedly, this was the driver behind Nordic Capital’s acquisition of the business in January. We see Cint as almost the ‘Uber of market research’. That being progressive technology within a mature and modest growing market, benefitting all parties in the market and value chain. We believe well-positioned technology companies such as Cint will continue to account for a large part of economic growth.
Cint uses innovative technology to work within the very large sector of market research – a market that has suffered from high costs and inefficiencies. The company’s strength lies in its solutions that help both market research corporations and other companies, with easy and cost-efficient ways to gather insights and speak to customers. This is an important factor for brands and businesses of all shapes and sizes, as consumers are becoming increasingly mobile and digital with brand marketing spend shifting to online.
From an investment point of view, Cint’s rapid growth and enviable profitability provides a sound base for further growth and international expansion. There is strong momentum around this offering right now, and Cint has increased its panel base to close to 40 million people – one of the largest panel marketplaces available globally. The success of Cint is also thanks to a track record in raising standards in innovation, transparency and quality within the market research world.
So what do we feel are the future opportunities within the market? The market for Cint is really significant, with ample opportunity for the company to more than double its revenues in the coming years. There is an ongoing shift in market research to more technology-based methods, driven by the need for efficiencies. Cint is one of the forerunners of this, leading the technical development of its niche with its innovative solutions. Its scalable model enables it to work for both smaller research customers and larger corporates alike. Now that it has reached a significant scale in both reach and operations, Cint is able to take on larger and global partnerships with world-leading market research firms.
Additionally, there are also many exciting opportunities within adjacent technologies that Cint will be launching, with Nordic Capital owning. The tradition of Cint launching industry ‘firsts’ is one that will continue so, watch this space!
As the new owner, what can Nordic Capital bring to Cint? Well, together both companies will be able to further develop and enhance technology solutions for its markets, as Nordic Capital can provide both the focus and resources to enable and accelerate such development. As new owners, Nordic Capital will support Cint’s continued internationalisation and further investment in partnerships and new solutions.
Indeed, Nordic Capital looks forward to working with the management team at Cint, combining their experience with our know-how from previous investments in growth companies; ensuring Cint continues on its rapid growth path and cementing its position as a leader in the sector.