SmartCraft ASA

Regulatory Filings • Apr 15, 2024

SmartCraft ASA (SMCRT) - SmartCraft acquires Swedish SaaS company Locka

SmartCraft ASA (SMCRT) - SmartCraft acquires Swedish SaaS company Locka

15 April 2024: SmartCraft ASA has acquired Locka Group AB, adding software

solutions within 3D visualization, customer interaction and after-sales service

for the construction industry.

"We have added 10 software companies into the SmartCraft family through

acquisitions over the past seven years, integrating them successfully whilst

simultaneously realizing synergies. We are excited to have the Locka team

joining SmartCraft and to offer their effective and appealing SaaS based

specialized software solutions for 3D visualization, customer interaction and

after-sales service. Locka is a great match for us and adds a wonderful

complement to our existing portfolio of software solutions for the construction

industry," said SmartCraft CEO Gustav Line.

Locka offers powerful and practical tools for 3D visualization, option

management, case management and customer interaction for construction companies

and property developers.

In 2023, Locka's revenue was SEK 37 million (excluding some discontinued

operations) with an EBITDA margin of 10 percent. The company currently has 21

employees and in the first two months of 2024, Locka grew its revenue

organically by 3 percent to SEK 6.2 million (YTD February) with a 16% EBITDA

margin and 10% EBITDA-CAPEX ("cash EBITDA") margin. At the end of 2023

approximately 50 percent of the revenue was recurring.

"Locka has faced challenges but is now in a good position with organic growth

and positive margins. We have a proven history of enhancing the performance,

growth and margins of the companies we have acquired, and we see ample

opportunities to do the same for Locka. SmartCraft will focus on value creation

by applying our established methods to adapt Locka's business model, boost the

company's recurring revenue and shift sales to ARR, like we have done with other

acquisitions in the past" said Gustav Line.

"We are eager to embark on a new chapter of profitable growth as part of the

SmartCraft team. The SmartCraft culture, construction software competence and

the strong track record in building successful SaaS companies for the

construction industry feels like a natural and positive step for us at Locka,"

said Johan Corke, CEO of Locka.

The transaction is based on an enterprise value of SEK 24 million, which will be

settled in cash. The transaction closed today, on 15 April 2024.

Contact

Gustav Line, CEO

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.