NORBIT ASA

Trondheim, 18 January 2021: NORBIT is currently in advanced and exclusive negotiations regarding an add-on acquisition of an undisclosed European company. The acquisition will create a broader platform for growth within the ITS business segment. NORBIT has signed a term sheet to this effect.

“This acquisition fits well into our selective M&A strategy. It also kickstarts our strategy to broaden the platform for growth in our ITS segment, allowing us to take a broader position in the asset and vehicle tracking/monitoring market. The target company offers vast experience in this field, a subscription based recurring revenue business model and a large customer base in its home market. We see attractive synergies where NORBIT´s capabilities can contribute to expand and broaden both the market footprint and the technology base of the target to fuel growth in Europe.” says Per Jørgen Weisethaunet, CEO of NORBIT.

The target company has, with its strong in-house competence, developed a technology including both hardware and software for vehicle and asset tracking and has several thousand customers, with a substantial share of recurring subscription-based revenues.

A preliminary transaction price has been agreed, valuing the target company at an enterprise value of EUR 14.5 million, based on an expected 2020 EBITDA¹ of approximately EUR 2 million representing an EBITDA margin² in excess of 35 per cent.

The transaction price and completion of the transaction are subject to due diligence and the audited accounting figures for the fiscal year ending 31 December 2020. The parties are working according to an agreed timeline with closing by end of first quarter 2021, contingent on obtaining necessary regulatory approval.

If completed, the acquisition is expected to be financed partly of a seller’s credit, by use of NORBIT’s available credit lines and through a EUR 2.5 million private placement to the sellers of the target company (consideration shares).

For further queries, please contact:
Per Jørgen Weisethaunet, CEO, +47 959 62 915
Per Kristian Reppe, CFO, +47 900 33 203

About NORBIT ASA
NORBIT is a global provider of tailored technology to carefully selected niches. The company’s business is structured to address its key markets; Oceans is offering tailored technology solutions to global maritime markets, Intelligent Traffic Systems (ITS) is offering connectivity solutions for vehicle identification and tracking, and Product Innovation and Realization (PIR) is offering R&D services and contract manufacturing to key customers.

NORBIT is headquartered in Trondheim, Norway, with manufacturing facilities in Selbu and Røros, Norway and 14 offices and subsidiaries around the world.

For more information: www.norbit.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Alternative performance measures and definitions:

1) EBITDA is short for earnings before interest, tax, depreciation and amortization. EBITDA corresponds to operating profit before depreciation and amortization
2) EBITDA margin is defined as EBITDA divided by total revenues

Both EBITDA and total revenues are according to the local accounting standards of the target company.