Viking Venture has acquired TimeLog, a professional services automation (PSA) software provider in the Nordics. The overall size of Viking Venture’s investment is NOK 120 million (US$13 million), which will fund international expansion and acquisitions, the companies say.
This is M&A deal 468 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here. Also, this is the second PSA-related buyout ChannelE2E has covered in the past 24 hours. The other deal involved Ingram Micro apparently buying Harmony PSA.
TimeLog, founded in 2001, offers PSA solutions that help consulting businesses plan, analyze, invoice and optimize projects. The company has more than 800 customers and 21,000 users in 12 countries. Its ARR (annual recurring revenue) is approximately NOK 43 million (US$4.7 million).
Viking Venture, meanwhile, positions itself as the "leading software investor in the Nordics." The company's investment portfolio spans 16 software companies.
Viking Venture Acquires TimeLog: Next Moves, PSA Competition
Backed by the new ownership, TimeLog plans to hire about 25 people in 2021 and the company will look to acquire one business per year over the next five years, CEO Per-Henrik Nielsen disclosed in a blog.
He provides more details in this video:Video link
Admittedly, the PSA software market is quite crowded. Within the small business MSP sector, established and emerging options include ConnectWise Manage, Datto Autotask, Kaseya BMS, Syncro, Atera and more. Take a closer look, and you'll notice at least 30 PSA options service various market segments and regions -- such as Naverisk in the Australia area.
TimeLog's PSA Market Focus
So what makes TimeLog unique? For starters, the company currently focuses on the Nordic and northern European markets -- fertile ground where many MSP software providers and PSA options are just getting started. Over time, it sounds like the company will eventually stretch its reach into India and the United States.
Instead of positioning for MSPs, TimeLog tends to focus on IT consulting firms and consultancies that need to:
- Track time on web, mobile and desktop
- Register vacation, flex, other absence, travels and expenses
- Manage projects
- Control invoicing on time & material
Also, TimeLog has its own API and offers integrations to such platforms as:
PSA Software Market Forecast
Although the PSA market is quite crowded, demand for such software remains healthy. The global professional service automation software market will reach $16 billion by 2025 -- a CAGR (compound annual growth rate) of 11.7%, according to a new report by Grand View Research.