SmartCraft ASA goes public after raising NOK 500 million, targeting continued growth

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SmartCraft ASA | Non-regulatory press releases

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SmartCraft goes public after raising NOK 500 million, targeting continued growth

24 June 2021 – With a mission of simplifying business for construction companies and craftsmen, the SaaS company SmartCraft goes public on Oslo Børs today, with a market capitalization of approximately NOK 3 billion.

“The listing on Oslo Børs today, marks a huge milestone for the company. We have received strong support from many new shareholders, and through the IPO we have built a solid platform for our growth ambitions in the years to come,” said CEO of SmartCraft Gustav Line.

95,000 individual users, employed in 9,000 companies in three countries, use SmartCraft software as a service solutions to increase productivity.

“The construction industry is among the largest industries in the world, but also among the least productive. This is changing fast. Our solutions are the hub for our customers. They get full control of revenue and costs and make sure all rules and regulations are followed,” said Gustav Line.

In the period 2017-2020, SmartCraft recorded an average annual revenue growth of 71 percent. The operating margins have improved, and in 2020, the adjusted EBITDA margin of the companies in the SmartCraft group was 41 percent. In 2020, the revenue of the companies in the SmartCraft group was NOK 219 million, of which almost all was recurring.

“This is a result of organic growth supported by an active approach to mergers and acquisitions. Going forward, we target 15-20 percent organic growth per year, and we will continue to be very active in terms of acquisitions,” said Gustav Line.

SmartCraft raised approximately NOK 500 million at a price of NOK 17.80 per share ahead of the listing. In addition, existing owners sold shares worth approximately NOK 600 million and the managers over-allotted shares worth approximately NOK 110 million. The offering was multiple times oversubscribed and attracted a range of high-quality Nordic and international investors, including Capital World Investors, Carnegie Fonder AB and Handelsbanken Fonder AB that acted as cornerstone investors in the IPO. After the transaction, SmartCraft’s main owner Valedo Partners III AB will remain a significant shareholder in the company, holding approximately 39.2% of the share capital, assuming that the greenshoe option is exercised in full.

“As a listed company with a strong shareholder base, we are ready for the next leg of our growth journey. We are already the market leader in the Nordics, where we estimate the market potential to be around NOK 10.5 billion. We capture our share of this through organic growth and through more acquisitions. Over time we aim to become the leading provider of software to SME construction companies in Northwestern Europe, Gustav Line concluded. 

About SmartCraft

  • Leading Nordic supplier of business-critical, SaaS based software for construction companies and craftsmen.
  • 9,000 customers and 95,500 individual users in Sweden, Norway and Finland. In addition to many small and medium-sized construction companies, the customer list includes large companies such as PEAB, Bravida, Rambøll, NCC and Brødrene Dahl.
  • In recent years, the company has acquired several software solutions, including Bygglet in 2018, EL-Vis in 2019, Rørweb and Congrid in 2020 and Homerun in 2021
  • SaaS-based business model, with 93 percent recurring revenue (subscription revenue)
  • 71 percent average annual growth in operating revenues (CAGR) in the period 2018-2020
  • Changed name from System Konsult to Cordel Norden in 2017. In 2021, the group was named SmartCraft.

For further information, please contact:
Gustav Line, CEO, SmartCraft (phone: +47 952 67 104, email:gustav.line@smartcraft.no)

IMPORTANT INFORMATION

This information does not constitute or form part of any offer or solicitation to purchase or subscribe for securities of the company, in the United States or in any other jurisdiction. The securities of the company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities of the company have not been, and will not be, registered under the U.S. Securities Act. Any sale in the United States of the securities mentioned in this communication will be made solely to "qualified institutional buyers" as defined in Rule 144A under the U.S. Securities Act. No public offering of the securities will be made in the United States.

In any EEA Member State, other than Norway, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the EU Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State. The expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (together with any applicable implementing measures in any Member State).

In the United Kingdom, this communication is only addressed to and is only directed at Qualified Investors who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as "Relevant Persons"). These materials are directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

Any offering of the securities referred to in this announcement will be made by means of a prospectus. This announcement is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on prospectuses to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (as amended) as implemented in any Member State. Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus. Copies of any such prospectus will, following publication, be available from the company's offices and, subject to certain exceptions, on the websites of the company and ABG Sundal Collier ASA and Carnegie AS (together with Joh. Berenberg, Gossler & Co. KG, the "Managers").

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.

This announcement is made by and, and is the responsibility of, the company. The Managers are acting exclusively for the company and no one else in connection with the offering and will not be responsible to anyone other than the company for providing the protections afforded to their respective clients, or for advice in relation to the offering and/or the contents of this announcement or any of the matters referred to herein.

Neither the Managers nor any of their respective affiliates makes any representation as to the accuracy or completeness of this announcement and none of them accepts any responsibility for the contents of this announcement or any matters referred to herein.

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