MilDef successfully completes the acquisition of roda computer GmbH and resolves on an issue in kind

On November 13, 2024, MilDef announced that a binding agreement had been signed to acquire roda computer GmbH (“roda”) for a cash consideration of EUR 70 million and an issue in kind of 1,374,047 new shares, on a cash and debt free basis (Enterprise Value). The acquisition has now been completed, significantly strengthening MilDef's presence in Europe and giving MilDef access to important market channels.

All regulatory approvals from Germany, France and the UK were received as planned. The consolidation of roda and MilDef, which will take place as of March 1, 2025, is expected to have a positive effect on MilDef's earnings per share (excluding any non-cash amortization from the transaction). Furthermore, the Board of Directors of MilDef, based on the authorization from the Extraordinary General Meeting on December 9, 2024, has today resolved on an issue in kind of 1,374,047 new shares to the sellers of roda.

“We are delighted to welcome all of roda's employees and customers to be part of a bigger and stronger whole. The acquisition of roda accelerates MilDef's expansion in the strategically important defense market in Europe and strengthens our role in the European defense buildup. As we begin the integration process together, we look forward to leveraging our combined strengths, shared values and commitment to delivering extraordinary capabilities. In the coming quarters, our focus will be on ensuring a smooth integration and actively realizing synergies between our companies. Together, we look forward to further improving our position in the European defense market,” says Daniel Ljunggren, President and CEO of MilDef Group.

The issue in kind in brief
The Board of Directors of MilDef has, pursuant to the authorisation granted by the Extraordinary General Meeting on 9 December 2024, resolved on an issue in kind, which forms part of the purchase price for the acquisition of roda as was communicated when the acquisition was announced on 13 November 2024. In addition to the cash consideration of EUR 70 million, MilDef issues a total of 1,374,047 new shares in MilDef Group AB[1] (the “Issue In Kind”) as part of the consideration to the sellers of roda determined in accordance with the acquisition agreement. For more information, see the press release published on 13 November 2024.

As a result of the Issue In Kind, the number of shares and votes will increase from 45,573,068 to 46,947,115. The share capital of the company will increase with 343,511.75 SEK from 11,393,267 SEK to 11,736,778.75 SEK.