Huddlestock Fintech

M&A Activity • Feb 23, 2023

Huddlestock enters the pension market through the acquisition of Dtech

Huddlestock enters the pension market through the acquisition of Dtech

23.2.2023 08:37:31 CET | Huddlestock Fintech AS | Additional regulated

information required to be disclosed under the laws of a member state

Huddlestock Fintech AS (OSE: HUDL) signs an agreement to acquire Dtech

Huddlestock Fintech AS ("Huddlestock") continues to scale its wealth management

and trading platform and has signed a Sale and Purchase agreement to acquire

Dtech AS, a Norwegian software company with robust and easy to use solutions for

portfolio management and fund order technology for the pension market and

pension providers.

Dtech was established in 2019 and generates today revenues through a SaaS model

to the leading Norwegian challenger in the pension market, Duvi Pensjon.

"Our vision is to democratize the capital markets, and by adding the pension

vertical to our offering we are entering a vast new market with a strong growth

outlook. Huddlestock and Dtech is a very good match, as Dtech can expand its

customer offering with Huddlestock technology like trading, asset management,

back-office, and settlement services to its client base in Norway. Furthermore,

we see opportunities to expand the pension products together with Huddlestock

and Dtech to the rest of the Nordics as well as to the German market." said John

E. Skajem, CEO of Huddlestock.

Duvi Pensjon, the leading challenger in the Norwegian pension market, is

focusing on SMEs and has 6,000 corporate customers serving 73,000 individual

pension schemes, managing NOK 4 billion in Asset Under Management.

A perfect match

"Dtech is an innovative and important partner to Duvi Pensjon, as we build our

position as an innovative and credible challenger in the corporate pension

market. We see Huddlestock, with their position as a technology-driven

challenger within wealth tech, as a perfect match for both Dtech and Duvi," said

Asbjørn Erdal, CEO of Duvi Pensjon

The acquisition of Dtech is an all-share transaction. The Purchase Price shall

be settled by the Buyer with 828 706 shares in the Buyer, using a price per

Consideration Share equal to a volume-weighted average price the last 10 trading

days prior to the signing of this Agreement, being NOK 2,4134 per share. There

is an additional earn-out potential of NOK 4 million payable in Consideration

shares if an additional NOK 10 mill have been achieved in recurring revenue

within this sector over the coming two years.

The senior management team of Dtech, Leif Arnold Thomas (CEO) and Daniel Risberg

(CPO) remain with the company after the acquisition and will join Huddlestock in

leading management roles.

"The team has more than 60 years of combined experience from fintech in

organizations like Oslo Børs VPS/Euronext and Centevo, and I am delighted that

they will remain with the company as driving forces for the development within

this new vertical for Huddlestock," said John E. Skajem, CEO of Huddlestock.

"We are looking forward to joining Huddlestock, as we share the same ambitions

for the fintech industry and believe Dtech's ability to scale will improve

significantly when included in the Huddlestock system, said Leif Arnold Thomas,

CEO of Dtech.

2022 was the first year of regular operation for Dtech. Dtech has developed a

specialized SaaS technology which has been proven to support the pension

industry. The company has experienced strong growth during the last 12 months

and is expected to continue to deliver impressive recurring revenues. As part of

Huddlestock, revenue growth is expected to be significant in the years to come,

driven by new customers and additional services already available from

Huddlestock.

Disclosure regulation

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

Contacts John E. Skajem, CEO, +47 418 87 412, john.skajem@huddlestock.com

For more information, please visit www.huddlestock.com -

http://www.huddlestock.com

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* John E. Skajem, CEO, +47 418 87 412, jes@huddlestock.com

ABOUT HUDDLESTOCK FINTECH AS

Huddlestock Fintech is an innovative technology software provider with a leading

expert professional services business. We deliver innovative and sustainable

technology solutions to the capital markets, treasury and wealth management

industries.

Through its technology offering, Huddlestock offers an innovative, compliant,

and data-centric WealthTech SaaS, accelerating the digital transformation, and

trends of hyper-personalization and on-demand banking within the wealth

management industry. Huddlestock's SaaS empowers the embedding of low-cost,

efficient white-label trading and investment services, underpinning

Huddlestock's mission of delivering financial inclusion by democratizing access

to capital markets.

Through its world-class expert professional services business, Huddlestock

delivers strategic technology solutions and process automation for the financial

services industry. This range of services has propelled Huddlestock into

becoming the preferred supplier of financial consultancy services and technology

solutions in the Nordic region. Huddlestock Fintech AS was listed on Euronext

Growth Market 26th November 2020, as Norway's first fintech company to be

publicly traded.

For more information, please visit www.huddlestock.com -

http://www.huddlestock.com/

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/2130/2864/Download%20announcement

%20as%20PDF.pdf

HSF IR Dtech Presse 20230223.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/2130/2863/HSF%20IR%20Dtech%20Pres

se%2020230223.pdf