SmartCraft ASA — Capital/Financing Update 2021

Jun 24, 2021

SmartCraft ASA goes public after raising NOK 500 million, targeting continued growth

SmartCraft ASA goes public after raising NOK 500 million, targeting continued growth

24.6.2021 08:00:01 CEST | SmartCraft ASA | Non-regulatory press releases

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SmartCraft goes public after raising NOK 500 million, targeting continued growth

24 June 2021 - With a mission of simplifying business for construction companies

and craftsmen, the SaaS company SmartCraft goes public on Oslo Børs today, with

a market capitalization of approximately NOK 3 billion.

"The listing on Oslo Børs today, marks a huge milestone for the company. We have

received strong support from many new shareholders, and through the IPO we have

built a solid platform for our growth ambitions in the years to come," said CEO

of SmartCraft Gustav Line.

95,000 individual users, employed in 9,000 companies in three countries, use

SmartCraft software as a service solutions to increase productivity.

"The construction industry is among the largest industries in the world, but

also among the least productive. This is changing fast. Our solutions are the

hub for our customers. They get full control of revenue and costs and make sure

all rules and regulations are followed," said Gustav Line.

In the period 2017-2020, SmartCraft recorded an average annual revenue growth of

71 percent. The operating margins have improved, and in 2020, the adjusted

EBITDA margin of the companies in the SmartCraft group was 41 percent. In 2020,

the revenue of the companies in the SmartCraft group was NOK 219 million, of

which almost all was recurring.

"This is a result of organic growth supported by an active approach to mergers

and acquisitions. Going forward, we target 15-20 percent organic growth per

year, and we will continue to be very active in terms of acquisitions," said

Gustav Line.

SmartCraft raised approximately NOK 500 million at a price of NOK 17.80 per

share ahead of the listing. In addition, existing owners sold shares worth

approximately NOK 600 million and the managers over-allotted shares worth

approximately NOK 110 million. The offering was multiple times oversubscribed

and attracted a range of high-quality Nordic and international investors,

including Capital World Investors, Carnegie Fonder AB and Handelsbanken Fonder

AB that acted as cornerstone investors in the IPO. After the transaction,

SmartCraft's main owner Valedo Partners III AB will remain a significant

shareholder in the company, holding approximately 39.2% of the share capital,

assuming that the greenshoe option is exercised in full.

"As a listed company with a strong shareholder base, we are ready for the next

leg of our growth journey. We are already the market leader in the Nordics,

where we estimate the market potential to be around NOK 10.5 billion. We capture

our share of this through organic growth and through more acquisitions. Over

time we aim to become the leading provider of software to SME construction

companies in Northwestern Europe, Gustav Line concluded.

About SmartCraft

* Leading Nordic supplier of business-critical, SaaS based software for

construction companies and craftsmen.

* 9,000 customers and 95,500 individual users in Sweden, Norway and Finland. In

addition to many small and medium-sized construction companies, the customer

list includes large companies such as PEAB, Bravida, Rambøll, NCC and

Brødrene Dahl.

* In recent years, the company has acquired several software solutions,

including Bygglet in 2018, EL-Vis in 2019, Rørweb and Congrid in 2020 and

Homerun in 2021

* SaaS-based business model, with 93 percent recurring revenue (subscription

revenue)

* 71 percent average annual growth in operating revenues (CAGR) in the period

2018-2020

* Changed name from System Konsult to Cordel Norden in 2017. In 2021, the group

was named SmartCraft.

For further information, please contact:

Gustav Line, CEO, SmartCraft (phone: +47 952 67 104, email:

gustav.line@smartcraft.no)

IMPORTANT INFORMATION

This information does not constitute or form part of any offer or solicitation

to purchase or subscribe for securities of the company, in the United States or

in any other jurisdiction. The securities of the company may not be offered or

sold in the United States absent registration or an exemption from registration

under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act").

The securities of the company have not been, and will not be, registered under

the U.S. Securities Act. Any sale in the United States of the securities

mentioned in this communication will be made solely to "qualified institutional

buyers" as defined in Rule 144A under the U.S. Securities Act. No public

offering of the securities will be made in the United States.

In any EEA Member State, other than Norway, this communication is only addressed

to and is only directed at qualified investors in that Member State within the

meaning of the EU Prospectus Regulation, i.e., only to investors who can receive

the offer without an approved prospectus in such EEA Member State. The

expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129 of the

European Parliament and of the Council of 14 June 2017 (together with any

applicable implementing measures in any Member State).

In the United Kingdom, this communication is only addressed to and is only

directed at Qualified Investors who (i) are investment professionals falling

within Article 19(5) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling

within Article 49(2)(a) to (d) of the Order (high net worth companies,

unincorporated associations, etc.) (all such persons together being referred to

as "Relevant Persons"). These materials are directed only at Relevant Persons

and must not be acted on or relied on by persons who are not Relevant Persons.

Any investment or investment activity to which this announcement relates is

available only to Relevant Persons and will be engaged in only with Relevant

Persons. Persons distributing this communication must satisfy themselves that it

is lawful to do so.

Any offering of the securities referred to in this announcement will be made by

means of a prospectus. This announcement is an advertisement and is not a

prospectus for the purposes of Regulation (EU) 2017/1129 of the European

Parliament and of the Council of 14 June 2017 on prospectuses to be published

when securities are offered to the public or admitted to trading on a regulated

market, and repealing Directive 2003/71/EC (as amended) as implemented in any

Member State. Investors should not subscribe for any securities referred to in

this announcement except on the basis of information contained in the

aforementioned prospectus. Copies of any such prospectus will, following

publication, be available from the company's offices and, subject to certain

exceptions, on the websites of the company and ABG Sundal Collier ASA and

Carnegie AS (together with Joh. Berenberg, Gossler & Co. KG, the "Managers").

Matters discussed in this announcement may constitute forward-looking

statements. Forward-looking statements are statements that are not historical

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"continue", "estimate", "expect", "intends", "may", "should", "will" and similar

expressions. The forward-looking statements in this release are based upon

various assumptions, many of which are based, in turn, upon further assumptions.

Although the company believes that these assumptions were reasonable when made,

these assumptions are inherently subject to significant known and unknown risks,

uncertainties, contingencies and other important factors which are difficult or

impossible to predict and are beyond its control. Such risks, uncertainties,

contingencies and other important factors could cause actual events to differ

materially from the expectations expressed or implied in this release by such

forward-looking statements. The information, opinions and forward-looking

statements contained in this announcement speak only as at its date, and are

subject to change without notice.

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Managers are acting exclusively for the company and no one else in connection

with the offering and will not be responsible to anyone other than the company

for providing the protections afforded to their respective clients, or for

advice in relation to the offering and/or the contents of this announcement or

any of the matters referred to herein.

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of them accepts any responsibility for the contents of this announcement or any

matters referred to herein.

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investment advice and under no circumstances is it to be used or considered as

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recommendation to buy or sell any securities of the company. Neither the

Managers nor any of its respective affiliates accepts any liability arising from

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company nor the Managers assume any responsibility in the event there is a

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