SmartCraft ASA (SMCRT) - SmartCraft acquires Swedish SaaS company Locka
15 April 2024: SmartCraft ASA has acquired Locka Group AB, adding software solutions within 3D visualization, customer interaction and after-sales service for the construction industry.
“We have added 10 software companies into the SmartCraft family through acquisitions over the past seven years, integrating them successfully whilst simultaneously realizing synergies. We are excited to have the Locka team joining SmartCraft and to offer their effective and appealing SaaS based specialized software solutions for 3D visualization, customer interaction and after-sales service. Locka is a great match for us and adds a wonderful complement to our existing portfolio of software solutions for the construction industry,” said SmartCraft CEO Gustav Line.
Locka offers powerful and practical tools for 3D visualization, option management, case management and customer interaction for construction companies and property developers.
In 2023, Locka's revenue was SEK 37 million (excluding some discontinued operations) with an EBITDA margin of 10 percent. The company currently has 21 employees and in the first two months of 2024, Locka grew its revenue organically by 3 percent to SEK 6.2 million (YTD February) with a 16% EBITDA margin and 10% EBITDA-CAPEX (“cash EBITDA”) margin. At the end of 2023 approximately 50 percent of the revenue was recurring.
“Locka has faced challenges but is now in a good position with organic growth and positive margins. We have a proven history of enhancing the performance, growth and margins of the companies we have acquired, and we see ample opportunities to do the same for Locka. SmartCraft will focus on value creation by applying our established methods to adapt Locka’s business model, boost the company’s recurring revenue and shift sales to ARR, like we have done with other acquisitions in the past” said Gustav Line.
“We are eager to embark on a new chapter of profitable growth as part of the SmartCraft team. The SmartCraft culture, construction software competence and the strong track record in building successful SaaS companies for the construction industry feels like a natural and positive step for us at Locka,” said Johan Corke, CEO of Locka.
The transaction is based on an enterprise value of SEK 24 million, which will be settled in cash. The transaction closed today, on 15 April 2024.
Contact
Gustav Line, CEO
Email: gustav.line@smartcraft.com
Phone: +47 952 67 104
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.