Verisure IPO: PE firm H&F picks Goldman, Morgan Stanley for one of Europe’s largest public offers

IPO Watch: Private equity firm Hellman & Friedman has chosen banks to guide the initial public offering of security firm Verisure, which could be one of the most significant listings in Europe in recent years, according to Bloomberg.

Goldman Sachs Group Inc. and Morgan Stanley have been appointed as global coordinators for the offering, as reported by sources who requested anonymity due to the confidential nature of the information, as per Bloomberg's report.

The listing of Verisure could provide a vital boost to the European IPO market, which has recently experienced a slowdown due to market volatility. The private equity backers of Stada Arzneimittel AG have opted to postpone the German drugmaker’s IPO until September, Bloomberg News reported earlier this week.

More banks could potentially be added to the list, according to the sources. Representatives from H&F, Goldman Sachs, and Morgan Stanley chose not to comment.

This month, Bloomberg News reported that H&F was meeting with banks for the Verisure IPO, noting that Goldman Sachs and Morgan Stanley were among those who had made proposals for roles. The security company is more inclined to conduct its listing in Europe, with locations such as London, Amsterdam, Zurich, and Stockholm being considered, according to sources familiar with the situation.

Company details

Verisure specializes in monitored security solutions tailored for homes and small enterprises across Europe and Latin America. Its offerings consist of video detectors and cameras, smoke barriers, shock sensors, and smart locks. In 2011, H&F and Bain Capital purchased Verisure from EQT AB for a valuation of 21 billion Swedish kroner ($2.1 billion). Four years later, H&F became the majority stakeholder in Verisure by acquiring its share from Bain.

Verisure is one of H&F's long-term investments. Another investment is the insurance brokerage Hub International Ltd. This private equity firm is aiming to generate a minimum of $1 billion in equity from investors for Hub, with a potential valuation of the business at $30 billion, as reported by Bloomberg News this month.

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