SpectrumOne acquires the mobile surveillance company Observit to be merged with SpectrumOne’s business Trafikportalen with the intention to list and distribute the new company to the shareholders

SpectrumOne has acquired all the shares in the Swedish company Observit AB which has developed an advanced cloud-based subscription service that revolutionizes video surveillance across mobile fleets and serves as a platform for all stakeholders (bus operators, transit authorities and the police). The acquisition is a perfect match with Trafikportalen and adds customers such as Keolis, Nobina and Telia. The agreed enterprise value of the transaction is SEK 60 million, on a cash-free and debt-free basis and assuming a normalized level of working capital. 

Observit is growing and has been profitable the last five years. It had an approximate revenue of SEK 20 million and an operating profit of SEK 4 million in the financial year ending June 30, 2021, with the main revenue stream being recurring software subscriptions from public transportation companies.

Observit will be merged with SpectrumOne’s business Trafikportalen becoming one company. The new Company will be at the frontline in analytics for the public transportation providing strong partnerships, a world-class development team and a potential in sales.

Hosni Teque-Omeirat CEO of SpectrumOne commented on the acquisition “We are excited to have Observit on board to join forces with Trafikportalen. Observit’s capacity within security, surveillance and analytics is a great match to Trafikportalen which has been created to give the best user experience for data regarding mobile fleets. With this acquisition we can now fully give Trafikportalen the right conditions to grow and become a well fit product for the Observit team. Being able to finally find the great fit for Trafikportalen is a huge achievement for the team at SpectrumOne, and it is deeply satisfactory to be able to distribute this asset to our shareholders - as promised.

Lars Flodén, CEO of Observit “We are very pleased to be part of the SpectrumOne Group going forward as they are well positioned for the future with their financial resources and experienced team in acquiring and integrating tech companies to support accelerated growth. With Observit’s solution together with Trafikportalen we will have a an even more competitive product to offer the public transportation market".

The listing procedures preceded by the distribution will be started immediately after closing, with the intention to come back to our shareholders with more information shortly.

Under the share purchase agreement Spectrumone AB will acquire 100% of the shares in Observit from the existing owners for enterprise value of the transaction is SEK 60 million, on a cash-free and debt-free basis and assuming a normalized level of working capital. The preliminary purchase price will be settled by SEK 22 million in cash and SEK 39 million in shares by setting off a sales credit of the same amount in SpectrumOne at a subscription price using the average price for the last 20 days of trade of SpectrumOne’s stock on Nasdaq First North Growth Market before the Closing date. The preliminary purchase price will be adjusted for any difference in net working capital at closing. In addition, an additional purchase price amounting to a maximum amount of SEK 5 million will be paid if certain revenue goals are achieved until June 30, 2022.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. Closing is expected to take place on September 15, 2021.

For further information contact:
Hosni Teque-Omeirat 
 CEO
+46 70 225 18 77 
[email protected]

Certified Adviser: Aktieinvest FK AB (556072-2596)
Box 7415 103 91 Stockholm
  Telefon: +46 8 506 517 03
[email protected]
www.aktieinvest.se
 

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 September 6, 2021 at 2 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. SpectrumOne´s 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.www.spectrumone.com