Huddlestock Fintech

Regulatory Filings • May 12, 2022

Huddlestock Fintech AS (OSE: HUDL) signs term sheet to acquire 100% of Tracs group of companies including a full investment banking license.

Huddlestock Fintech AS (OSE: HUDL) signs term sheet to acquire 100% of Tracs group of companies including a full investment banking license.

12.5.2022 08:09:23 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

entering into an agreement with the intention to acquire 100% of Trac Services

AS and Trac Technology AS, which includes Norwegian FSA licenses (

https://www.finanstilsynet.no/virksomhetsregisteret/detail/?id=178674), giving

the Huddlestock Group increased revenue potential and higher margins on their

existing portfolio of wealth management products. The term sheet is the second

agreement, next to F5 IT, signed to accelerate growth and deliver on the

ambition of becoming the largest B2B Fintech service and technology provider in

Europe. Signing of SPA agreement and closing of the transaction is expected

before the end of June 2022.

"This acquisition will give Huddlestock the necessary license upgrade that we

communicated we would target in our latest round of fund raising. In addition,

we get a suite of complementary wealth management products, and improve our

annual recurring technology revenues with an estimated NOK 14.1 million per

year. Together with the intended acquisition, we will bring 8 highly committed

employees, and the institutional investor, Njord Group, onboard. Similar to the

acquisition of F5 IT, the acquisition the Tracs group of companies, is an

all-share deal which shows the faith owners and managers put in our ability to

build a solid and valuable business," says John Skajem, CEO of Huddlestock.

The agreement will give the owners of Trac Services and Trac Technology

ownership equal to 9% of the outstanding shares in Huddlestock after the

issuance of new shares. In addition, there will be a bonus of 3% shares, if the

Huddlestock Group reaches a total revenue of NOK 100 million with an EBITDA

margin equal to 5% in 2023. The main shareholder in both Trac companies is the

Glastad shipping family, through Njord Group AS. Glastad has been an industrial

investor for over 100 years and have broad ownership interests in Norway, as

well as internationally. The family will subsequently become one of the largest

institutional shareholders and investor in the Huddlestock Group. Two

representatives from Glastad are set to join the Huddlestock board of directors

once the transaction is concluded.

"Trac Services brings over 18 years of experience from the financial industry,

and currently have 12.000 end clients and approximately NOK 4 billion in assets

under management. Together with our investment banking license, we see strong

synergies between Huddlestock and Trac Services. Combined we will be one of the

largest B2B Fintech providers in Europe, and can increase our revenues and

margins, opening for rapid expansion of the business. As institutional and

long-term investors we strongly believe in the value proposition of Huddlestock,

and see a profitable future together," says Jan Sigurd Vigmostad, Chairman of

Trac Services AS and Trac Technology AS.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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/17848032/1444/1967/Download%20announcement

%20as%20PDF.pdf