Nordic Unmanned ASA

M&A Activity • Jul 12, 2021

Nordic Unmanned acquires leading German drone company

Nordic Unmanned acquires leading German drone company

12.7.2021 19:02:51 CEST | Nordic Unmanned | Additional regulated information

required to be disclosed under the laws of a member state

Nordic Unmanned has signed an agreement to acquire 100 percent of the shares the

leading German drone developer and manufacturer AirRobot. The acquisition

secures patented world-leading last-mile unmanned delivery technology and

extends the product and customer portfolio within the Defense & Security

business area.

"The acquisition of AirRobot gives access to a strong and proven portfolio of

products and patents. It includes an excellent position in the German defence

market and an exciting technological roadmap for the global unmanned last-mile

logistics market. We are very happy to welcome the strong and experienced team

of 30 developers and production staff, located in one of the most important

European markets, to the Nordic Unmanned family. The increased product portfolio

within the logistic and defence business areas will contribute strongly to our

communicated 2025 growth strategy." says Knut Roar Wiig, CEO of Nordic Unmanned.

Founded in 2005, AirRobot is a true pioneer in the European drone industry.

AirRobot had revenues of EUR 2.3 million in 2020 and a profit before tax (EBT)

margin of 5%. The company is a long-standing supplier for the German armed

forces ("Bundeswehr") of both drone systems and Maintenance, Repair and Overhaul

("MRO") services since 2005. During the past years, the company has invested

heavily in next generation drones, to position itself for a major ongoing

defence contract in Germany. The company holds ISO 9001 certification as a drone

developer and manufacturer and is fully certified to deliver to German and other

NATO forces.

"This transaction is in line with our announced strategy of consolidating the

fragmented drone industry in Europe. It builds on the strong and booming defence

industry relationship between Germany and Norway following the joint submarine

programme recently agreed between the two nations. With this transaction we will

be able to serve our current clients within the German and Norwegian governments

in an even better manner," Mr. Wiig adds.

AirRobot is located in the city of Arnsberg in the Ruhr region, in the heart of

the German industrial area.

Key products and technologies:

* AirRobot possesses a line of proprietary drone systems with more than 16 000

flight hours to date: Important in relation to German army, potential for

sale to other armed forces in Germany and other countries.

* Coaxial motor configuration patent in Germany, UK, US, Canada, Ireland, and

several other key markets: A design currently used by several logistical

drones, including Nordic Unmanned's own Staaker BG200 system.

* Last-mile delivery drone solution: Complete, patented and highly scalable

logistic last mile platform concept for global clients.

"The acquisition of AirRobot adds revenue, a full operational team and an

exciting new CRM pipeline for Nordic Unmanned from day one. Long-term, AirRobot

will give us the realisation of the patented concept for last-mile logistics,

placing Nordic Unmanned as a front runner in the global unmanned logistics

market. I highly recommend those with an interest in our industry to view the

AirRobot video available online, highlighting this truly revolutionary and

scalable concept," says Mr. Wiig.

The video is here:

https://www.youtube.com/watch?v=Rc4hhWzB5KI&ab_channel=NordicUnmanned

The transaction will be settled at closing with 80 percent in cash and 20

percent in Nordic Unmanned shares, issued in line with the board's

authorization, for a total value of EUR 4.45 million. The shares will serve as

escrow for the certain seller's guarantee obligations for 18 months. The seller

has the option to choose between shares or cash at release of the escrow. An

additional EUR 0.5 million in cash is payable if certain performance targets are

met.

The seller is AirRobot's founders and current CEO and CFO, Mr. Burkhard

Wiggerich and Mrs. Jolante Wiggerich. Upon completion of the transaction, they

will renounce their posts but will continue to assist the company as required.

"This is the perfect match for AirRobot. As a listed, international company,

Nordic Unmanned provides a wonderful platform for further growth, based on our

strong technology platform and our position in the German market," says Mr.

Wiggerich.

The transaction is subject to Investment Control Approval from German

authorities and is expected to take place before year end.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Knut Roar Wiig, CEO, +47 92 66 66 59, krw@nordicunmanned.com

* Trond Østherhus, Chief Financial Officer, Nordic Unmanned AS, +47 95 99 08

79, to@nordicunmanned.com

ABOUT NORDIC UNMANNED

Nordic Unmanned delivers comprehensive data solutions through industry leading

expertise, to assist both public and private customers in the transition to

unmanned technology. The focus is to support demanding clients by collecting

time-critical data with the use of unmanned technology.

Founded in 2014, the company has offices in Sandnes, Oslo, and Frankfurt, and

has quickly become one of Europe's leading providers of unmanned systems and

services, with operations across the continent.The company is ISO 9001-2015

certified by DNV-GL for the operation, maintenance and sales of unmanned systems

and sensor technology.

For more information visit nordicunmanned.com - https://nordicunmanned.com/