Crayon Group Holding — M&A Activity 2019

May 8, 2019

CRAYON: Crayon Acquires Dutch Channel Software Service Provider

CRAYON: Crayon Acquires Dutch Channel Software Service Provider

Oslo, 08 May 2019: Crayon Group Holding ASA ("Crayon") has today signed an agreement to purchase 100% of the outstanding shares of Sequint, a leading Dutch IT channel software service provider. According to the SPA, Crayon will acquire Sequint at an equity value of approximately MNOK 40, out of which MNOK 25 is related to an earn-out model based on the financial performance of the company during the next 24 months.

For FY 2018, Sequint posted gross profit of approximately MNOK 18 and an EBITDA of MNOK 8, implying an EV/EBITDA multiple of x5.

The acquisition of Sequint will be a significant add-on to Crayon's Cloud-iQ platform, with approximately 300 partners, to further increase scale on the indirect software business for Crayon in the Benelux region.

“Sequint has a strong footprint in the Dutch market, with strong licensing capabilities, supported by a solid team and proven financial record, and we are excited about welcoming them to our team”, says Torgrim Takle, Crayon Group CEO.

“The entire Sequint family is excited to join Crayon to further strengthen our capabilities and accelerate in the Dutch market. Crayon adds on licensing expertise and services capabilities that are essential in a more digitalized world”, says Maarten Jong, Sequint CEO.

Sequint will continue under its own brand for the near future. Over the next two years the plan is to further strengthen the Sequint offering and invest to gain market share using Crayon unique IP and service offering.

For further queries, please contact:

Magnus Hofshagen, FP&A, and IR Director

Email: magnus.hofshagen@crayon.com

Mobile: +47 48 49 91 95

About Crayon

Crayon Group Holding ASA is a leading IT advisory firm in software and digital transformation services. With unique IP tools and skilled employees, Crayon help optimize its clients' ROI from complex software technology investments. Crayon have long experience within volume software licensing optimization, digital engineering, predictive analytics and assists the clients through all phases of the process of a digital transformation. Headquartered in Oslo, Norway, the company has more than 1,300 employees in 43 offices worldwide.