SmartCraft ASA (SMCRT) – Acquiring Coredination and strengthening Nordic construction software leadership position
18 July 2023: SmartCraft ASA has acquired Coredination AB, a Swedish SaaS solution for construction companies, expanding the value proposition to new customer groups in the construction industry and allowing for increasing cross-sell and upsell to existing customers.
“We have a proven history of successful acquisitions, adding product offerings and accelerating revenue and margin development in the acquired companies. This is our 10th bolt-on acquisition, and we are confident that the Coredination team and their solution will be a good supplement to the group. They have a modern Software-as-a-Service (SaaS) application for construction companies, covering workforce management, machine rental, and fleet management. This is highly complementary to our existing software portfolio”, said Gustav Line, CEO of SmartCraft.
Coredination reported SEK 10 million in revenue in 2022. Year to date June 2023 the company achieved 18 percent organic growth in revenue with a 12 percent cash EBITDA margin. More than 90 percent of the revenue is recurring and the company has a low churn of 6 percent last 12 months. The Stockholm-based company has more than 200 contracted customers and more than 3000 users.
“Coredination is a perfect example of the type of company we would like to buy. They have a small, but dedicated team of 10 people which over the last ten years has built a modern specialized SaaS solution catering to specific needs of a construction company. The team has a great SaaS mindset and most of the people work in development,” said Gustav Line.
“We are excited to become part of the SmartCraft Group. We have over the last few years built the company and Swedish market position stone by stone and we are now ready for acceleration in Sweden and other markets. We believe SmartCraft, with its solid position and attractive culture, will be the best to be to take Coredination to the next level,” said Folke Lundblad, CEO at Coredination.
The transaction is based on an enterprise value of SEK 23.7 million. The purchase price for the shares is SEK 25 million which was settled in cash.
Folke Lundblad, Kent Malmström and Martin Insulander, founders and three of the sellers of Coredination, have undertaken to acquire shares in SmartCraft on the open market for a total amount of SEK 2.25 million, within six months of SmartCraft's acquisition of Coredination. The shares acquired by Folke Lundblad, Kent Malmström and Martin Insulander will be subject to a 12-month lock-up period after the completion of the share acquisition.
Contact
Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com
About SmartCraft
SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to SME's in the construction sector. The company's business model is highly scalable, based on 97% recurring revenue and low churn. The construction sector is among the least digitalized industries and represents a NOK 10bn software market in the Nordics, growing at a double-digit rate. SmartCraft's solutions help customers to increase their productivity, margins, and resource efficiency.