Huddlestock Fintech

M&A Activity • Mar 31, 2022

Huddlestock Fintech AS (OSE: HUDL) Signs term sheet to acquire the software developer F5 IT in an all-share deal.

Huddlestock Fintech AS (OSE: HUDL) Signs term sheet to acquire the software developer F5 IT in an all-share deal.

31.3.2022 11:05:11 CEST | Huddlestock Fintech AS | Inside information

Huddlestock Fintech AS, a provider of innovative technology solutions to the

capital markets, treasury and wealth management industries, today announces that

a term sheet was entered into on 28 March 2022 for the intention to acquire 100%

of F5 IT, a software developer focused on customised application and integration

solutions within Fintech, Proptech and IoT. The company is highly complementary

with existing Huddlestock operations in Norway, Sweden, and Denmark, and will

accelerate the company's plans to become a leading Fintech in Europe.

"We are excited to welcome F5 IT's teams of software developers to the

Huddlestock family. We see strong strategic fit between our two companies," says

John E. Skajem, CEO of Huddlestock Fintech AS. "Our acquisition the 20-person

strong F5 IT team of full-stack and specialist developers will allow us to bring

greater value to our customers and accelerate the deployment of our existing

product suite to the market"

The addition of F5 IT will strengthen Huddlestock's Fintech expertise, and add

important Proptech and IoT knowledge to its team of world-class Capital Markets

experts. With F5 ITs team of specialist and full-stack developers, Huddlestock

expert consultants will be able to drive smarter business decisions and deliver

innovative and inclusive solutions on one platform, furthering Huddlestock's

technology-first mission.

"We are very proud of the teams' achievements over the past years. We are

excited to join Huddlestock, Norway's first listed Fintech. Our combination will

offer our clients a global growth platform allowing us to widen our offering of

tailor-made software solutions," says Stian Røisland, Chairman of F5 IT.

Financial details. Huddlestock will, in the form of a share-exchange make a

payment of NOK 20,000,000 for 100% of the shares in F5 IT. The agreement further

includes a potential earn-out of up to NOK 12,000,000 based on certain financial

performance targets deliverable over the next three years. Payments will be

based on a price of NOK 3,00 for each Huddlestock Fintech share. The total

consideration, should all performance targets be met, will be NOK 32,000,000,

entirely paid for by transferring 10,666,667 Huddlestock Fintech shares already

held in treasury. The payment of the consideration shares will be done in

arrears over the coming three years and will be subject to vesting provisions.

F5 IT is expected to earn revenues of NOK 17,000,000 in 2022 on a stand-alone

basis. Further expanded revenue flows will be sought out from the combined

company and cost synergies will be achieved. The acquisition will be entirely

paid for in an all-share deal with shares already held in treasury. From the

date of the above announcement, the parties will enter a due diligence process

that is expected to close within four weeks.

The acquisition of F5 IT is Huddlestock Fintech's second major acquisition in

the last 12 months.

About Huddlestock Fintech: 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. For more information, please visit

www.huddlestock.com - http://www.huddlestock.com/

About F5 IT: F5 IT delivers tailored application development and integrations

for digitizing entire organizations. It is headquartered in Stavanger and has 20

technology developers based between Stavanger on the West Coast of Norway and

Constanta in Romania. For more information, please visit https://f5it.com -

https://f5it.com/

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

The information included in this announcement is defined as inside information

pursuant to the EU Market Abuse Regulation article 7 and is publicly disclosed

in accordance with MAR article 17.

CONTACTS

* Cecilia Luras, Director of Strategy & Investor Relations, +47 951 45 382,

col@huddlestock.com

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

ABOUT HUDDLESTOCK FINTECH AS

Huddlestock Fintech delivers innovative 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 is regulated by Bafin and

was listed on Euronext Growth Market 26 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/17848032/1330/1780/Download%20announcement

%20as%20PDF.pdf