SmartCraft ASA

Regulatory Filings • May 2, 2024

SmartCraft ASA (SMCRT) - SmartCraft enters the UK market through the acquisition of the SaaS company Clixifix

SmartCraft ASA (SMCRT) - SmartCraft enters the UK market through the acquisition of the SaaS company Clixifix

2 May 2024: SmartCraft ASA expands into the UK market and opens a vast market

opportunity outside the Nordics through the acquisition of the construction SaaS

company Clixifix Ltd. The acquisition adds an annual recurring revenue (ARR) of

GBP 2.76 million.

"This is a landmark event for SmartCraft, and through this strategically

important, and financially accretive transaction, we are taking our first step

outside our Nordic home markets, expanding our market potential massively.

Clixifix represents a great foothold and starting point for further growth in

the UK. It also matches well with SmartCraft as it has a high share of SaaS

recurring revenue, a strong growth profile, an attractive, large customer base

and a modern technical platform," said CEO of SmartCraft Gustav Line.

Clixifix offers an end-to-end SaaS based scalable solution managing defects,

complaints and repairs for construction companies and property owners. Since its

inception in 2012, the platform has resolved more than 1.8 million defects.

"We are very excited to welcome Clixifix to the SmartCraft family. With 85

percent recurring revenue, a modern technology platform, low churn, rapid growth

and a highly scalable model, Clixifix is a high-quality platform that stands out

in the UK landscape. The solution provides great value for its 20.000 users

across 250 corporate customers, with rapid return of investment for the system's

customers," said Gustav Line.

In 2023, Clixifix had revenues of GBP 2.45 million, representing a growth of 50

percent compared to 2022. Currently, the company has 34 employees. In the first

three months of 2024, Clixifix continued its fast growth, with an organic

revenue increase of 30 percent to GBP 0.72 million (compared to 0,55 in Q1 2023)

despite a challenging construction market. In Q1 2024, the company had 36

percent EBITDA margin and 7 percent EBITDA-CAPEX margin ("cash EBITDA"). Q1 2024

was the first quarter in the company's history with a positive cash EBITDA,

which was achieved through strong growth combined with a scalable business

model. At the end of February 2024 Clixifix had an annual recurring revenue

(ARR) of GBP 2.76 million.

"We are really looking forward to becoming part of SmartCraft. With its strong

track record of building great software companies and a broad portfolio of best

-of-breed SaaS solutions for the construction industry, we truly think it's a

great home for Clixifix," said James Farrell, CEO of Clixifix.

The transaction is based on an enterprise value of GBP 10.2 million, which will

be settled in cash, but with a small element of 177 353 SmartCraft treasury

shares already purchased in the buy-back program. The agreement to acquire the

company was executed today and is conditional only on the vendors receipt of

funds and is thereby expected to close today.

Clixifix is SmartCraft's 12[th] acquisition, over the past seven years. The

first 11 acquisitions were in Norway, Sweden, and Finland, and the company has

since the IPO in 2021 stated the ambition of expanding the successful model for

SaaS based software tools for the construction industry in Northwestern Europe.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation, and is subject to disclosure requirements pursuant to

Section 5-12 of the Norwegian Securities Trading Act.

Contact

Gustav Line, CEO SmartCraft ASA

Email: gustav.line@smartcraft.com

Phone: +47 952 67 104

About SmartCraft

SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to

SME's in the construction sector. The company's business model is highly

scalable, based on 97% recurring revenue and low churn. The construction sector

is among the least digitalized industries and represents a NOK 10bn software

market in the Nordics, growing at a double-digit rate. SmartCraft's solutions

help customers to increase their productivity, margins, and resource efficiency.