Nekkar — M&A Activity 2024

Jul 3, 2024

UPDATED: Nekkar ASA to acquire maritime connectivity and digital service provider Globetech

UPDATED: Nekkar ASA to acquire maritime connectivity and digital service provider Globetech

3.7.2024 07:22:26 CEST | Nekkar ASA | Inside information

3nd July 2024 - Nekkar ASA has entered into an agreement to acquire the majority

of the fast-growing and profitable maritime connectivity and digital service

provider Globetech AS.

HIGHLIGHTS

? Acquires company with 10+ years track record of profitable growth

? 20% EBITDA margin with 50% share of repeat revenues

? Good fit for Nekkar's strategy of digitizing ocean-based industries

? Commercial synergies between Globetech and other Nekkar subsidiaries

? Diversifies Nekkar's portfolio and revenue streams

"Globetech fits perfectly within Nekkar. Both companies operate in the maritime

and offshore industries, both use digitalization and software as key enablers to

achieve a higher proportion of recurring revenue, both deliver solid EBITDA

margins, and there are strong synergies between Nekkar's portfolio companies and

Globetech. In sum, Globetech will constitute a new solid platform for us, and we

are delighted to welcome them into the Nekkar family," says Ole Falk Hansen, CEO

of Nekkar ASA.

ABOUT GLOBETECH

Globetech provides ICT (information and communication technology)

infrastructure, connectivity and support services to the global maritime sector.

The company offers complete solutions for onboard network infrastructure

including hardware, tailored solution architecture and system integration for

satellite communications, and develops software and customized ICT solutions

that focuses on cybersecurity to ensure secure and continuous operations.

The company was founded in 2011 and is headquartered in Kristiansand, Norway,

where Nekkar ASA and several of its portfolio companies are located. Globetech

currently employs 28 IT and digitalization specialists. The company's founders

and key management will remain with the company and are incentivized to further

improve its growth and profitability.

Globetech's customers include ship owners and ship management companies within

the shipping and offshore industries. More than 150 vessels are currently being

served by Globetech, including tankers, offshore supply vessels, anchor-handling

tug supply vessels and others.

"We believe Nekkar is the ideal partner to support the continued growth of

Globetech," says Hans Eirik Onarheim, managing director and co-founder of

Globetech. "We are confident that this partnership will provide us with the

resources and support needed to further develop our offerings and achieve our

long-term goals."

HISTORY OF VALUE CREATION

Globetech has a track record of profitable growth, reflecting its business model

where approximately half of the company's revenue are repeat business, including

a high proportion of recurring license fees from its customer fleet of

approximately 150 vessels.

Globetech benefits from a diversified business model where it provides hardware

sales as well as installation and consulting services for new installations

onboard vessels. Once operational, customers pay license fees for software

subscriptions and fees for monthly support services.

In 2023, Globetech delivered revenue of NOK 54 million and EBITDA of NOK 11

million, equivalent to an EBITDA margin of approximately 20 percent. The company

has on average grown 28 percent annually in the past two years, and it expects

to surpass 75 MNOK in revenues for 2024, whilst delivering the same healthy

EBITDA margin levels.

"Digitalization and connectivity for ships, deck equipment and sensors are

driving demand for Globetech's services. With more ships connected, there is a

greater need for cyber security to prevent ships being targeted and threats

infiltrating onboard networks. This is exactly what Globetech helps to prevent,"

adds Ole Falk Hansen.

Globetech will become a new stand-alone platform company within Nekkar.

Globetech as a platform will complement the Nekkar portfolio with a high

proportion of repeat business and recurring revenues.

TRANSACTION DETAILS

Nekkar ASA has entered into a two-stage transaction with the founders of

Globetech which by 2027 secures 100 percent ownership of Globetech.

In the first stage, Nekkar acquires 67 percent ownership of Globetech.

Globetech's enterprise value is at signing estimated to NOK 120 million on a 100

percent basis, based on last twelve months EBTIDA and an implied multiple of

7.7x EBITDA. The share purchase for the 67 percent ownership share will be

settled NOK 64 million in cash and NOK 15 million in Nekkar ASA shares at

closing of the transaction. Nekkar will utilize the company's treasury shares to

settle the share-based consideration, which is valued at the VWAP last five days

prior to signing and subject to a two-year lock-up period. The cash-based

consideration will be covered by Nekkar's cash balance, which stood at NOK 197

million at 31 March 2024.

In 2027, Nekkar will acquire the remaining 33 percent of outstanding shares in

Globetech. The consideration will be settled in cash based on a multiple of

achieved EBITDA in 2027.

The transaction is expected to be completed during the third quarter of 2024.

Please find enclosed a slide deck that introduces Globetech and summarizes the

key points of the acquisition.

(ENDS)

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Ole Falk Hansen, CEO, +47 988 14 184, ir@nekkar.com

ABOUT NEKKAR ASA

Nekkar (OSE: NKR) is an industrial technology group offering impact technologies

combined with high-end software solutions. The group combines 50 years' heritage

from the world's number one shiplift company, Syncrolift, with new investments

into sustainable, digitalised technology businesses that aim to unlock growth

within ocean-based industries such as offshore energy, renewables and

aquaculture.

ATTACHMENTS

Globetech stock exchange announcement.pdf -

https://kommunikasjon.ntb.no/ir-files/17847326/18170350/4738/Globetech%20stock%2

0exchange%20announcement.pdf