Etteplan acquires STRONGIT ApS, a Danish consultancy company – a direct share issue to the owners of the acquired company as part of the purchase price
ETTEPLAN OYJ, Stock exchange release, January 8, 2024, 10:20 a.m. EET
Etteplan acquires STRONGIT ApS, a Danish consultancy company – a direct share issue to the owners of the acquired company as part of the purchase price
Etteplan strengthens its market position in Denmark and acquires STRONGIT ApS, a technology services company focusing on product development solutions. The successful acquisition marks a continuation in Etteplan’s strategic growth journey as it complements our expertise and further expands our international operations.
As part of the financing of the transaction, Etteplan Oyj's Board of Directors, at its meeting held on January 8, 2024, made a conditional decision on the share issue based on the share issue authorization given to the Board of Directors by the Annual General Meeting on April 5, 2023. The directed share issue is related to the acquisition of STRONGIT ApS. In accordance with the terms of the transaction, the purchase price will be paid through a share issue to the sellers and cash. The contract of sale, which was a condition of the decision, was signed today, January 8, 2024, and at the same time the sellers subscribed for 150 000 Etteplan new shares as a part payment for the purchase amount. The subscription price per share to be paid for the shares is EUR 14.048 (For more information on the terms of the directed issue, see the bulletin below.)
The acquisition strengthens Etteplan’s product design services and embedded solutions business in Denmark
STRONGIT is a software and embedded services company founded in 2010. STRONGIT delivers its services through a team of 13 competent experts and a network of around 70 freelancers in Copenhagen, Århus and Gråsten, Denmark. In 2023, STRONGIT’s revenue was approximately 13 million euros.
“STRONGIT’s comprehensive consulting capabilities as a provider of product design services and embedded solutions strengthen Etteplan's position in Denmark and expands our operations to Jutland, Fynen and Copenhagen. Combining Etteplan’s comprehensive service offering and STRONGIT’s excellent customer base creates many interesting growth prospects for both Etteplan and STRONGIT. Together we will generate more value to our customers in Denmark and we’re excited to start this journey”, says Juha Näkki, President and CEO of Etteplan.
“STRONGIT is thrilled to join forces with Etteplan. As a part of a bigger international company, we are excited about the prospects and the value we will bring together to our customers and stakeholders, who can now benefit from Etteplan’s global service solutions. This also gives our business and colleagues diverse opportunities for development and growth", Peter Eberle, CEO and owner of STRONGIT says.
STRONGIT will be a part of Etteplan’s Software and Embedded Solutions service area and included in the figures starting from January 1, 2024.
Directed share issue to STRONGIT’s owners
At its meeting held on January 8, 2024, the Board of Directors of Etteplan Oyj (the "Company") made a conditional decision on the directed share issue based on the share issue authorization granted to the Board by the Annual General Meeting on April 5, 2023. The directed share issue is related to the acquisition of STRONGIT ApS. In accordance with the terms of the transaction, the purchase price will be paid through a share issue to the sellers and cash.
The contract of sale, which was a condition of the decision, was signed today, January 8, 2024, and at the same time the seller subscribed for 150 000 Etteplan shares as a part payment for the purchase price. The subscription price per share to be paid for the shares is EUR 14.048. Payment for the subscription price was made by setting off against the acquisition debt from the Company. The company's unrestricted equity will increase by EUR 2,107,188.68.
The new shares subscribed for in the directed share issue will be registered in the Trade Register on approximately April 26, 2024 and in the book-entry system maintained by Euroclear Finland Oy on approximately May 10, 2024. The shares will be applied for public trading once the said registrations have been completed. However, trading in the new shares will only be possible after three years, when the transfer restriction agreed upon in connection with the transaction has expired.
The subscription prices of the shares will be recorded in full in the Company's invested unrestricted equity fund, and the share capital will not be increased in connection with the issue. The total number of Etteplan shares after the issue is 25 350 793. The shares to be issued represent approximately 0.60 percent of the total number of the Company's shares prior to the issue and approximately 0.59 percent of the total amount after the issue. The new shares are entitled to a dividend starting from the financial year 2024. After the issue, the Board of Directors may, based on the authorization of the Annual General Meeting, decide to issue a maximum of 2 350 000 shares.
Espoo, Finland, January 8, 2024
Etteplan Oyj
Board of Directors
Distribution:
Nasdaq Helsinki
Major media
www.etteplan.com
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Communications and Marketing, tel. +358 10 307 3302
Etteplan in brief
We are a rapidly growing technology service company specializing in software and embedded solutions, engineering solutions, and technical communication solutions. We are a forerunner in the engineering industry and we differentiate ourselves by the wide-ranging competence of our experts. Our customers include world’s leading companies in the manufacturing industry. We help them to create a better world through engineering, innovation and digitalization.
Etteplan has lead the way in the engineering field already since 1983. In 2022, we had a turnover of EUR 350.2 million. The company currently has some 4,000 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com