The 91% Recurring-Revenue Small Cap With a Built-In Rerating Trigger

One carve-out turned a “mixed” software group into a clean platform story. Now it’s all about SaaS compounding, partner distribution, and what shareholders get back.

This is the kind of setup that creates asymmetric outcomes in small-cap software: the product doesn’t suddenly become “better” the equity narrative becomes clean enough for the market to pay attention.

Here’s the snapshot:

• A Nordic software group is selling a non-core division for up to SEK 850m and explicitly plans to return a substantial part of the proceeds to shareholders via extra dividend or redemption.

• The remaining business already runs on ~91% recurring revenue, with ~SEK 220m ARR and an EBITDA margin that just rebounded to ~21% in the latest quarter.

• SaaS within the recurring base is still growing (think high-teens), and distribution is partner-led inside major ERP ecosystems which is how small software platforms scale without blowing up their cost base.

That combination (recurring revenue + platform distribution + corporate simplification + capital return) is exactly what tends to precede reratings in underfollowed small caps.

In the paid section, I reveal the name and ticker, break down the platform , map the real compounding pathway (and where it fails), and give you the KPI dashboard + valuation framing I’d actually underwrite.

The company is…