Observit AB, a subsidiary of SpectrumOne, acquires the UK based companies Sitoc Ltd and Icanprove.it Ltd in order to become the leading fleet surveillance software company in Europe
Observit AB, a subsidiary of SpectrumOne, has acquired all the shares in the UK based companies Icanprove.it Ltd and Sitoc Ltd in order to become the leading fleet surveillance software company in Europe. Icanprove.it provides on-board camera solutions for vehicles within the private industry using Axis cameras and Observit’s video surveillance system to monitor trucks and other commercial vehicles. Icanprove.it has been a long-term partner of Observit, and the companies supplement each other on many different levels. Sitoc has been assisting in developing Icanprove.it products as well as rendering high level IT support services to external companies.
In the combined company of new Observit, the company will have a forecasted annual revenue of approximately 60 MSEK, half of which will be recurring on an annual basis. In Observit the average client contract length is on 8-12 years. This means the company will have an easily forecastable revenue stream and an advantage in the competition where many peers have far higher proportion of one-off services and consultancy than Observit. Having its own developed solutions makes it a true competitor on the technologically immature European fleet market.
The agreed total purchase price for both companies is £ 1.5 million (approximately SEK 18.750 million).
Icanprove.it and Sitoc have together an approximate revenue of SEK 32.5 million and a consolidated profit of just above SEK 2 million for 2021. The companies’ operations have been founded, operated and developed successfully under the leadership of the former main owner Gavin Urtel, who will continue his role as Managing Director of the companies.
Lars Flodén CEO of Observit AB commented on the acquisition “We are excited to have ICanProve.IT and SITOC on board to join forces with Observit. I look forward to working together and to benefiting from synergies, particularly in the areas of software development and sales. I believe our English subsidiaries are ideal partners for both our staff and our customers and I am excited by the opportunities to broaden and strengthen our customer offering in the UK market and at the same time enter the markets in the rest of Europe outside the Nordic countries together with them.”
Gavin Urtel, CEO of Icanprove.it and Sitoc, said “The truth is, ICanProve.IT, SITOC and Observit have been working together for many years – developing innovative fleet video services. We are already great friends and partners. This consolidation will allow us to be truly global in our reach and ambition. Together our gifted teams are aligning and further developing our edge-based technologies, bringing to market intelligent fleet video solutions that simplify the safety, security, visibility & efficiency of complex fleets into the future.”
Hosni Teque-Omeirat, Board member of SpectrumOne, added, “I am proud we have managed to merge the three great companies together in order to truly make it possible for Observit to take a prominent role in building the leading fleet surveillance software company in Europe. Having more than half of our revenues now directly rendering from SaaS business and offering a one-of-a-kind solution to our clients together with our partner Axis world-wide, makes this journey for our shareholders not only a highly interesting one to follow, but also gives great opportunities for a remarkable yield the coming years. Finally, we can hand over Observit with great confidence and an assurance that we have refined it to the best of our ability. Thank you for your patience.”
In order to finance the cash part of the transaction, a directed issue of 53 333 340 shares in Observit were issued at a subscription price of SEK 0.15 per share giving a gross proceed of SEK 8 million. The directed issue of shares was resolved by the Board of Directors using the authorization granted by the annual general meeting in Observit on the 15th of December 2021. The directed issue of shares is directed to Crafoord Capital Partners AB. In addition, the same company has given a loan to Observit amounting to SEK 2 million at a yearly interest rate of 12% to be paid back on June 30, 2023. The reasons for the deviation from the shareholders’ preferential right were mainly to enable a capital raise in a time and cost-efficient manner in order to complete the acquisition of ICanProve.IT and SITOC. Together with the shares to be issued to the owners of Icanprove.it, 83 333 340 new shares will be issued in Observit, the number of shares in Observit will increase to 549 344 140 after registration.
Under the share purchase agreement, Observit will acquire 100% of the shares in SITOC Ltd and Icanprove.it Ltd from the existing owners for a purchase price of £ 1.5 million (approximately SEK 18.750 million). The Purchase price will be settled by SEK 14.25 million in cash and SEK 4.5 million in shares by setting off a sales credit of the same amount in Observit at a subscription price of SEK 0.15 per share. The shares to be issued as consideration are subject to a lock up clause whereby the Sellers undertake to not sell more than a maximum of 1/3 of its shares during the first period of six (6) months directly following the Closing Date. After six (6) months from the Closing Date, the Sellers are entitled to sell an additional 1/3 of the shares and after nine (9) months the Sellers are entitled to sell all shares without restriction. The acquisition and closing took place on May 17, 2022.
For further information contact:
+46 739 78 78 44
Aktieinvest FK AB (556072-2596)
Box 7415 103 91 Stockholm
Telefon: +46 8 506 517 03
SpectrumOne AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on May 17, 2022 at 5.55 p.m. CET.
About SpectrumOne AB
SpectrumOne is a leading technology company delivering an advanced Data Management, Analytics & Communications platform suite. Offered in a SaaS online service shipping with rich market data from various professional providers, SpectrumOne provides a unique solution to many leading actors across industry segments in various countries. Enabling clients with fast and easy access to data insight and visualization coupled with powerful search, segmentation, and mapping features. SpectrumOne allows data to be quickly enabled and operationalized, driving activities from customer communication to data science supporting business analysis, strategy, and growth. All of which can be enabled the same day with immediate results. SpectrumOnes headquarter is based in Stockholm, Sweden, responsible for Nordic sales and strategy, with additional sales and business development located in Norway, Finland, Belgium and Spain. SpectrumOne is listed on Nasdaq First North Growth Market in Stockholm.