Inin Group AS — M&A Activity 2021

Feb 23, 2021

Elop AS: Simplifai enters strategic partnership plan for the Middle East

Elop AS: Simplifai enters strategic partnership plan for the Middle East

23 February 2021 – ELOP’s AI business unit Simplifai has signed a strategic cooperation and development agreement that has been designed to fast-track the market penetration of Simplifai’s AI solutions and lay the foundation for a permanent presence in the Middle East.

Simplifai has entered into the strategic partnership agreement with VAD Technologies (VAD), one of the largest distributors of IT and technology services in the Middle East. VAD’s head office is located in Dubai, and the company has a sales network through more than 1,000 partners all over the Middle East.

VAD’s strategic partnership agreement with Simplifai covers Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar and Oman.

“The purpose of the deal is of course to drive sales in the Middle East, but there are additional mechanics in the agreement that incentivises both parties to contribute towards building up a permanent Simplifai subsidiary in the region. It allows us to set up an immediate presence and fast-track market penetration, but without incurring substantial costs while doing so,” says Bård Myrstad, VP of Simplifai.

Simplifai develops automation solutions using artificial intelligence (AI) to help clients across numerous industry sectors to run their operations more efficiently.

Under the terms of the agreement, VAD becomes exclusive distributor of Simplifai’s products in the Middle East against making certain sales volume commitments. Simplifai has the right to acquire the local Simplifai ME entity at a later stage.

“In sum, this is a strategic partnership where both parties can benefit significantly from making it a success. We have spent the past eight months probing the Middle Eastern market to test market acceptance and readiness for Simplifai’s technology and solutions. The response has been excellent, which is why we want to enter this strategic partnership,” says Mario M. Veljovic, general manager at VAD Technologies.

During the past six months, Simplifai has trained VAD’s employees and several business partners in Simplifai’s AI tools and systems, conducted a pilot test with a VAD customer, and established several sales processes that are ongoing and could materialise in new contracts.

“We believe this is a rather ingenious and mutually incentivised strategic partnership agreement, with close to zero financial risk for Simplifai. If successful, Simplifai will utilise this model as blueprint for market entry into other countries and regions,” says Øivind Horpestad, CEO of Simplifai’s parent company, Elop AS.

ENDS

For further information, please contact:

Media

Bård Myrstad, VP Simplifai, tel: +47 415 03 263

Øivind Horpestad, Executive Chairman and CEO of Elop, tel: +47 910 00 626

Investors

Torbjørn Blom-Hagen, CFO of Elop, tel: +47 926 48 847

About Elop AS

Elop is a Norwegian technology company that has developed tools and digital solutions to inspect, monitor and manage infrastructure worldwide. The company’s technology portfolio includes a patented ultrasound technology for inspection and analysis of critical infrastructure. Through data-driven and AI-based solutions for inspection and predictive maintenance of concrete infrastructure, Elop’s vision is to provide asset owners with solutions that improve safety, extend asset lifetime, minimise total lifecycle cost and environmental footprint. Elop is headquartered in Norway. More information: www.elop.no

About Simplifai

Simplifai is Elop’s AI business unit. It supports Elop with developing data-driven and AI-based solutions for inspection and monitoring of critical infrastructure.Simplifai operates as a stand-alone business where it develops automation solutions using artificial intelligence to help clients across numerous industry sectors to grow effeciently. For example, Simplifai’s Digital Employee solutions can automate labour intensive work process where natural language communication including email, chat or documents are central, for example in customer relations, case handling, HR and accounting. Simplifai was acquired by Elop in January 2021. More information: www.simplifai.ai