ZetaDisplay AB (publ) (“ZetaDisplay” or the “Company”), has entered into an agreement 27 May 2018 to acquire all of the shares in Webpro AS (“Webpro”) in exchange for payment in cash of approximately NOK 21 million plus additional performance-based supplemental payments.
Webpro is a Norwegian company which develops and sells customer-adapted digital signage solutions used around the world. The company’s largest customers are IKEA and McDonalds in Russia. In 2017, the company had sales of NOK 24 million of which contracted and recurring revenue consisted of approximately NOK 6.5 million. Operating earnings were NOK 4.1 million. The company’s solutions are installed in over 75 IKEA stores around the world and in over 600 McDonalds restaurants.
The purchase price is approximately NOK 21 million, on a cash and debt free basis and will be paid in cash at closing. Provided that certain defined earnings-related threshold values are achieved in 2018 and 2019, a maximum variable purchase price of approximately NOK 29 million will be paid. Any supplemental purchase price will be determined and paid out in 2019 and 2020 and ZetaDisplay is entitled to pay any supplemental purchase price in the form of common shares in ZetaDisplay.
Closing on the shares in Webpro is planned to take place during the third quarter of 2018. Completion of the transaction is contingent, among other things, on obtaining full financing to carry out the transaction and the board of directors plans to finance the acquisition through a rights issue.
It is ZetaDisplay’s goal to continue to carry out acquisitions in accordance with the adopted growth strategy and to actively participate in the ongoing consolidation of the digital signage industry in Europe. Through this acquisition, the company further strengthens its delivery capacity and takes an important international step in the digital signage industry.
“Webpro has succeeded in attracting renowned international customers and, together with our platform and organization, Webpro’s customers will be able to benefit from a broader range of products and services which can be rolled out internationally”, says Leif Liljebrunn, CEO of ZetaDisplay.
“It is in the interest of both Webpro’s customers as well as our own to be a part of a larger organization with a broader range of products and services and with an international presence. Together with ZetaDisplay, we will achieve this and will be able to offer complete solutions on the cutting edge of technology to existing and new customers” says Trond Hatling, CEO of Webpro.
For more information, please contact: CEO Leif Liljebrunn Telephone: +46 70 845 80 52 Email: leif.liljebrunn@zetadisplay.com
The information in this press release is the type of information which ZetaDisplay is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided for publication through Leif Liljebrunn on 28 May 2018 at 8:45 AM.
About ZetaDisplay
ZetaDisplay is a leading supplier of solutions for digital shop development helping companies in the retail chain and service industry become more competitive through innovative services and products which narrow the gap between the digital and physical. ZetaDisplay is in a strong growth phase and intends to establish itself globally over the next few years. Its headquarters are located in Sweden with sales offices in Denmark, Norway, Finland, Estonia and the Netherlands. Since 2017, ZetaDisplay’s shares have been traded on Nasdaq’s main market under the ticker name ZETA. You can follow ZetaDisplay on Twitter at https://twitter.com/zetadisplaypubl and you can read more about the company on its website at http://zetadisplay.com/ .
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