Inin Group AS — M&A Activity 2023

Feb 21, 2023

Inin Group AS: Non-binding offer received for Inin Group’s subsidiary Elop Technology AS | Company Update

Inin Group AS: Non-binding offer received for Inin Group’s subsidiary Elop Technology AS | Company Update

21 February 2023 – Inin Group has received a USD 30 million non-binding offer for the potential sale of wholly-owned subsidiary Elop Technology AS.

In connection with the received offer, Inin Group has decided to provide a company update to the market, the company update is attached to this announcement and show the Inin group with Elop Technology as divested.

Inin Group - without Elop Technology, - target a revenue of approximately NOK 540 million and a profitable result in 2023. In addition to the expected organic growth, Inin Group expects to announce further acquisitions in near future.

As of 31. December 2022 Inin Group had no interest-bearing debt and approximately NOK 135 million in available liquidity, including a NOK 50 million vendor note from the sale of Simplifai last year. The company had an order-backlog of NOK 369 million.

Further details will be given in the planned H2-2022 presentation that will be held on the 9th of March.

POTENTIAL SALE OF ELOP TECHNOLOGY

Inin Group has received the offer regarding the potential sale of Elop Technology, a wholly owned subsidiary of Inin Group, to an undisclosed entity. The potential transaction could reinforce Elop Technology`s international expansion and create synergies within a company that intends to pursue a process of a public listing on NASDAQ.

The received proposal value Elop Technology at USD 30 million. The acquisition amount will, if accepted, be settled in a 100% share swap. The transaction is subject to satisfactory due diligence by both parties and final transaction documentation being entered. The Inin Group Board of Directors will now use time to evaluate the proposal before they give their recommendation or acceptance to the proposal.

The offer contains certain guarantees that secures intellectual property right protection for Elop Technology’s ultrasound scanner technology if the planned listing does not go ahead. The listing must take place within 18 months after closing of the transaction.

“The offer is for Elop Technology as a standalone business and do not affect any of our other business units. Elop Technology have a unique technology, but as we have announced earlier, we have looked for a partner or co-owner since it is risk and will take time before the company will become profitable. The management team in Elop Technology has been a natural and active part in the process and in the discussions with the potential buyers. The potential transaction represents strong interest in Elop Technology`s IP. If the transaction and subsequent NASDAQ-listing go ahead, this transaction could represent a significant upside potential for Inin Group,” says Øivind Horpestad, CEO of Inin Group AS and chairman of Elop Technology AS.

ARC Group Limited is acting as the exclusive financial advisor to Elop Technology AS in this potential transaction.

Inin Group expects the final terms and conditions to be negotiated and finalized during the first quarter 2023.

During 2022, Inin Group acquired Nordic Infrastructure Group AS, a rail-focused construction competence and service supplier; Hadeland Elektro AS, a complete electrotechnical solution provider for power supply and infrastructure projects; and established testing, inspection and certification (TIC) company Nordic Inspekt Group AB.

In addition, Inin Group owns Elop Technology AS, which delivers inspection hardware and software, including ultrasound-based scanner solutions to determine the internal state of concrete structures.

“Inin Group aims to ensure value creation through a combination of well-executed acquisitions and successful organic growth initiatives. Our starting point for consolidation is to identify an attractive market or niche. The plan is that our portfolio companies, such as Nordic Infrastructure Group or Nordic Inspekt Group, make the acquisitions to consolidate and/or to add a service or competence. Our preference is to co-own with management and founders, but we can also choose to acquire all shares in a company,” says Øivind Horpestad, CEO of Inin Group.

(ENDS)

For further information, please contact:

Øivind Horpestad, CEO of Inin Group, Tel: +47 910 00 626

About Inin Group AS

Inin Group is an industrial owner that invests into companies within infrastructure and industry services niches in the Nordics. The group aims to create value by identifying investment opportunities within profitable niches with potential for development, consolidation and growth, working in collaboration with portfolio companies to deliver sustainable growth and superior profitability. For more information, please visit: www.inin.no

About ARC Group

ARC Group is a full-service financial services provider within cross-border capital markets and M&A advisory services with offices in mainland China, Hong Kong, Singapore, Indonesia, Malaysia, India, UAE, Mexico, and New York. ARC Group successfully closed USD 8.4 billion in total transaction value in 2022. For more information, please visit: www.arc-group.com