HMS Networks

M&A Activity • Oct 1, 2024

PRESS RELEASE

Halmstad, October 1st

HMS Networks AB (publ) divest MB Connect Line

HMS Industrial Networks GmbH, a wholly owned subsidiary of HMS Networks AB (publ) has today entered into binding agreement to divest all shares in Red Lion Europe GmbH, located in Dinkelsbühl, Germany, for a cash consideration of EUR 5 million. The buyer is a group of the company's long-standing managers.

Red Lion Controls Europe GmbH is a manufacturer of of Secure Remote Access and Industrial IoT and Security products currently sold under the MB Connect Line brand. The rational for the divestment is to streamline the global offer of Remote Access, Remote Data and Remote Monitoring solutions under the Ewon brand.

The business today employes 35 people with Net Sales for the period ending September 30, 2024 of EUR 5 million.

"We are thankful for the contribution made by the team at Red Lion Controls Europe GmbH during our short period of ownership and wish them all the best for the future." -says Staffan Dahlström, CEO of HMS.

Closing of the transaction is expected to take place within one to two months. The divestment will have limited impact on HMS' earnings per share.

For more information, please contact:

Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01 Joakim Nideborn, CFO HMS, +46 (0)35 710 6983

HMS Networks AB (publ) is a market-leading provider of solutions in Industrial Information and Communication Technology (Industrial ICT) and employs over 1 200 people. Local sales and support are handled through over 20 sales offices all over the world, as well as through a wide network of distributors and partners. HMS reported sales of SEK 3,025 million in 2023 and is listed on the NASDAQ OMX in Stockholm in the Large Cap segment and Telecommunications sector.