HIDDN: Enters into a LOI for a potential business combination with Energos Group, to diversify business to include renewable energy technology.
(Oslo, 25 March 2019) Hiddn Solutions ASA (Hiddn, OSE: HIDDN) has entered into a Letter of Intent (LOI) for a potential business combination with Energos Group AS (Energos) to add new business lines providing technology and solutions to the global renewable energy production industry.
“We are pleased to announce the ambition to join forces with Energos to further develop and fuel the growth of an already strong and profitable business line within supplying technology and solutions for renewable energy production. Energos has a solid platform in this global industry and we look forward to developing our joint value creation opportunities” says Carl Espen Wollebekk, CEO of Hiddn.
The transaction
Reference is made to Hiddn’s stock exchange notice on 18 March 2019, announcing that the company had entered into discussions with a privately-owned technology based, industrial group. Hiddn and Energos has on 24 March 2019 entered into a LOI with the ambition to consolidate the two entities. Following the potential transaction, the Energos shareholders are expected to hold 70% of Hiddn on a fully diluted basis. Energos reports non-audited revenues in 2018 of approximately NOK 165 million and an EBIT of NOK 20 million for continued businesses.
Hiddn will prepare and publish an information document or a prospectus, as applicable, as part of the business combination.
"By combing Hiddn and Energos, the company will have significant opportunities to continue profitable growth and expansion within renewable energy production, while at the same time leveraging on our position as a leading technology provider in the global encryption market. With additional available resources, we will be able to further increase our product offering and distribution capabilities", Wollebekk concludes.
About Energos
Energos is a global provider of technology, equipment and services to energy producers within energy recovery, hydropower and district heating. The company also provides services to the offshore industry. Energos engages over 100 highly qualified employees and contracted resources across offices and production facilities in Eiken, Arendal, Risør and Trondheim. The group operates through several entities, among others Energos Contract, Energos Installation, Energos Technology, Energos Equipment, and Enerquip.
“Energos has an ambitious growth strategy and a combination with Hiddn will provide the company with increased flexibility to enhance organic growth and pursue M&A opportunities. Energos has built a strong platform in the global and growing renewable energy production industry and we see significant opportunities for international growth and value creation" says Jan Erik Hadland, CEO of Energos.
The completion of the proposed transaction is subject to, among other things, due diligence, final transaction agreements being entered into, approval by the shareholders of Energos and the approval by the Hiddn shareholders at an extraordinary general meeting. Subject to the completion conditions being fulfilled, the transaction is expected to close during the second quarter of 2019.
The process with Tactilis Pte Limited (Tactilis) continues as informed in the stock exchange notice on 18 March 2019.
ENDS
For further information, please contact:
Carl Espen Wollebekk, CEO of Hiddn, telephone: + 47 930 55 505 /e-mail: cew@hiddn.no
About Hiddn Solutions ASA
Hiddn Solutions ASA is listed on the Oslo Stock Exchange under the ticker HIDDN. The company is offering impenetrable proprietary hardware-based authentication and encryption products with a superior level of security as well as a wider product suite addressing all market segments looking for solutions to ensure that sensitive information stays confidential and unavailable to unauthorised access. Based on Hiddn's unrivalled and proven position in the high-end encryption market, the company is implementing a strategy of adapting the proprietary technology to the high-volume markets to take advantage of the growing global security challenges and the arising regulatory requirements. Hiddn has established a product offering that addresses all market segments from the high-end security clients to the retail market, as well as established partnerships with some of the most important sales and distribution partners in Europe. Hiddn sees significant growth opportunities and rising demand from customers and is well on its way to solidify its leading position in the growing market for secure data storage.
For more information, please visit: www.hiddn.no
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