Mercell Q1 2021: Announces continued strong growth and high growth ambitions

Continuing the expansion

• Entering European expansion phase with acquisition of Negometrix

• Acquisition funding secured through NOK 434 million equity issue in February 2021

• Acquisitions of CTM Solutions in the Netherlands and Ibistic in Denmark in May, financed with cash in hand

Solid financial performance

• ARR of NOK 634 million per Q1, +170% year-on-year with organic growth of +28%

• Reported revenue +160% to NOK 148.2 million in Q1 (57.0), with EBITDA of NOK 35.4 million (6.8)

• 27% EBITDA-margin adjusted for special items

Ambitious long-term strategy

• Ambition to more than double ARR in existing markets organically by 2025

• Potential to establish similar-sized business in new European markets in the same timeframe

• Exciting early-stage opportunity in the potentially large US market

• M&A activity to continue at high pace to capture window of opportunity and gain market leadership

Oslo, 2O May 2021: Mercell Holding ASA (Mercell, MRCEL:ME) reports 170% year-on-year growth in Annual Recurring Revenue (ARR) to NOK 634 million for Q1 2021, combining 28% organic growth and acquired ARR. Revenue increased by 160% to NOK 148.2 million, with organic revenue growth at 18%. Reported EBITDA increased to NOK 35.4 million (6.8), whereas adjusted EBITDA increased to NOK 40.4 million (9.6). The adjusted EBITDA-margin hence improved to 27% from 17% in the same quarter last year.

-We have combined solid organic growth and acquisitions to consolidate the Nordic market within e-tendering and e-procurement. Looking ahead we see continued strong growth opportunities both in our existing core markets and in large European markets. We are setting out to more than double our existing business over the next five years, and aim to create a similar-sized business in additional European markets,

says CEO Terje Wibe in Mercell.

OUTLOOK:

Mercell’s vision is to become the preferred e-tendering and procurement platform in Europe by unleashing the full potential of a user-friendly and trusted marketplace. The company has already established clear market leadership in Sweden, Norway, Denmark, and the Netherlands. Building on these strong positions the company sees potential to more than double ARR organically by the end of 2025.

The company also sees large growth opportunities in several European markets and is introducing an ambition to grow a business of similar size in new markets within the same timeframe. This will require continued high M&A activity to expand the European presence, consolidate existing markets, and add product portfolios and customer bases. Over the past two years, Mercell has acquired companies with combined ARR of more than NOK 400 million at the time of acquisition, and the company expects to maintain the same pace of M&A for the next three years.

With its proven organic growth and M&A capabilities, Mercell is well positioned to fulfil its strategic growth ambitions, and expects increasing economies of scale, continued product and services development and improved operational efficiency to support a long-term EBITDA-margin ambition of 40%+.

Webcast:

The management team will host a combined Q1 2021 presentation and Capital Market Update today from 08:30 CEST to approximately 10:30 CEST. The presentation will be followed by a Q&A session, and questions may be asked in writing during and after the presentation in the questionnaire below the webcast window. Please use the following link to access the presentation: https://streams.eventcdn.net/mercell/q12021

The report, presentation and the link to the webcast will be made available at https://investor.mercell.com/investors/

For further information please contact:

CEO Terje Wibe

Cell: +47 90 83 79 98

Email: terje.wibe@mercell.com

CFO Fredrik Eeg

Cell: +47 90 83 33 78

Email: Fredrik.eeg@mercell.com

This is Mercell:

Mercell is a leading digital platform for public eTendering and entered the eProcurement market in 2020. The company has a customer base of more than 2,600 pre-award buyers, 26,300 suppliers and 300 post-award buyers. Mercell’s unique marketplace simplifies the tender and procurement process and makes it easy and secure for buyers to find relevant suppliers for their tenders and purchasing needs, and enables suppliers to find relevant business opportunities and receive and handle purchases from public and private buyers. Mercell delivers services to public and private buyers in 13 European countries with the goal of becoming the leading software-as-a-service (SaaS)-platform for eTendering and eProcurement in Europe. Through the acquisition of Negometrix in February 2021, Mercell also became market leader in the Netherlands and established a foothold in the US market.