Enea evaluates potential acquisition and the possibility to issue a senior unsecured bond of SEK 500M
Enea AB (publ) (“Enea”) has mandated ABG Sundal Collier as financial advisor and sole bookrunner to evaluate the possibility to issue a senior unsecured bond. Further, Enea has signed a letter of intent to acquire a US-based company focused on mobile traffic management solutions, and the proceeds from the bond issue will be used to partly finance the acquisition.
The planned acquisition will expand and strengthen Enea’s product offering within Network Solutions, and is a significant next step in the strategy to build a stronger global software company. The company to be acquired is a market leader in its segment and reports preliminary adjusted revenues of USD 27M for 2017, and an EBIT of USD 3M. The company has a rapidly growing and profitable core software business with good cash flows. Enea is expecting to be able to further improve the company’s operating margins to near Enea’s operating margins of above 20 percent by the end of 2018. The total purchase price consideration will amount to approximately USD 90M, and Enea is looking to raise SEK 500M in a senior unsecured bond loan with a tenor of 3 years. The bond issue will be directed to Swedish and international qualified institutional investors.
The acquisition is expected to be signed in the near future and completed during April 2018, subject to regulatory approval. Signing of the acquisition is subject to the completion of the contemplated bond financing.
Anders Lidbeck, President & CEO
Tel: +46 8 507 140 00
Enea develops the software foundation for the connected society. We supply open-source based NFVI software platforms, embedded DPI software, Linux and real-time operating systems, and professional services. Solution vendors, Systems Integrators, and Service Providers use Enea to create world-class networking products and services. More than 3 billion people around the globe already rely on Enea technologies in their daily lives. Enea is listed on Nasdaq Stockholm.
For more information: www.enea.com
Enea®, Enea OSE®, Netbricks®, Polyhedra®, Zealcore®, Enea® Element, Enea® Optima, Enea® LINX, Enea® Accelerator, Enea® dSPEED Platform and COSNOS® are registered trademarks of Enea AB and its subsidiaries. Enea OSE®ck, Enea OSE® Epsilon, Enea® Optima Log Analyzer, Enea® Black Box Recorder, Polyhedra® Lite, Enea® System Manager, Enea® ElementCenter NMS, Enea® On-device Management and Embedded for LeadersTM are unregistered trademarks of Enea AB or its subsidiaries. Any other company, product or service names mentioned above are the registered or unregistered trademarks of their respective owner. © Enea AB 2018.
This is information that Enea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 26, 2018 at 8:00 am CET