SoftwareONE Holding AG — M&A Activity 2021

May 21, 2021

Ørn Software Holding AS (ORN) - Ørn acquires Landax, adding NOK 21 million of ARR and 540 new customers

Ørn Software Holding AS (ORN) - Ørn acquires Landax, adding NOK 21 million of ARR and 540 new customers

21.5.2021 10:24:07 CEST | Ørn Software Holding AS | Inside information

Trondheim, May 21 2021 - Ørn Software has signed an agreement to acquire the

Norwegian Quality Management Software-as-a-Service (SaaS) company Landax, thus

gaining a strong portfolio of new customers in new and existing sectors.

"Through the acquisition of Landax, Ørn Software continues to execute on its

communicated growth plan. Landax has a unique position within the Quality

Management space, and its platform offers and impressive width in functionality

that perfectly complements our existing portfolio perfectly. Landax represents

an offering that is highly attractive for Ørn's existing customers, and vice

versa," says Ørn Software's CEO Sten-Roger Karlsen.

The acquisition adds 540 new customers to Ørn Software's portfolio, including a

range of large companies within Norwegian retail, logistics and industry. The

acquisition also provides Ørn with 11 highly skilled employees in Norway, and a

development team in Poland.

At the end of 2020, Landax had an annual recurring revenue (ARR) of NOK 18.9

million. 2020 revenue was NOK 30.8 million. This represented an organic growth

in ARR of 29% compared to 2019. During the first four months of 2021, Landax has

increased its ARR with 14% to NOK 21.2 million. The 2020 EBITDA was NOK 10.1

million (NOK 6.0 million in 2019). The acquisition increases Ørn Software's ARR

with 18%. Ørn's proforma ARR at the end of 2020 was NOK 107 million, after

having grown 73% annually in the period 2017-2020.

The transaction is based on an enterprise value of NOK 95 million and implies a

multiple of 4.5x on ARR. The transaction will be settled with 80% cash at

closing and 20% in Ørn Software shares, issued in line with board authorization.

The transaction is expected to close in June 2021.

"Today, companies need to continuously increase their efficiency and quality to

stay competitive and relevant. Implementing digital management tools is an

important part of meeting this need. Mega-trends like the Digitalization wave,

Smart buildings/cities and Industry 4.0 are pushing the technological

development, enabling even more value to be created from our software

solutions," Karlsen says.

"Maintenance Management and Quality Control is a very good match, and our

customers need both to gain full control over the entire value chain, to

optimize efficiency, quality, and to increase sustainability," says Karlsen.

"We have offered this combination to the Aquaculture industry since acquiring

Pixelwerk in January 2020. With Landax, we can provide the same broad range of

services to other sectors as well," says Karlsen.

"The shareholders of Landax are very pleased to become a part of Ørn Software.

Over time, Ørn has proven to be a solid, flexible, and rapidly growing player in

the software industry. The company has a strong market position within

industrial maintenance, aquaculture, and real estate. Correspondingly, Landax

has become a dominant supplier of management solutions for quality control, HR,

HSE and project management. Together, the combined entity will represent a major

market power in the Nordic region," says Torleif Bratlie, CEO of Landax.

"Although Landax' main market is Norway, its platform supports multiple

languages and is ready to be introduced outside the country," says Karlsen.

Ørn Software has ambitions for further acquisitions.

"We see that there are very good opportunities for value creation by continuing

our aggressive acquisition strategy. Landax is the sixth company we have

acquired in the past 18 months. In addition, we also have significant organic

growth, and our target is to organically grow our ARR to NOK 300 million and

reach 40 percent EBITDA margin by 2025.

DISCLOSURE REGULATION

?This information is such that Ørn Software Holding AS is required to disclose

in accordance with the EU Market Abuse Regulation.

?This information was submitted for publication by the Company's CFO, Vidar

Andre Løken.

CONTACTS

* Sten-Roger Karlsen, CEO Ørn Software, +47 922 62 321, srk@ornsoftware.com

* Vidar Andre Løken, CFO Ørn Software, +47 952 60 926, val@ornsoftware.com

ABOUT ØRN SOFTWARE HOLDING AS

Ørn Software is a Nordic provider of SaaS solutions enabling efficient

operations and maintenance across a wide range of asset-heavy industries,

including real estate, manufacturing, food & beverages, and aquaculture.

The Group's software provides customers with improved insight through

data-driven operations and contributes to increased efficiency and reduced costs

through digitalization of rental processes, data-driven maintenance scheduling

and energy optimization. All of the above contribute to the lengthening of

property and equipment lifespan, a key component of Ørn Software's value

proposition. Furthermore, the Group's offering enables customers to reduce their

environmental footprint and provides digital tools to meet reporting and

regulatory requirements.

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847696/588/777/Download%20announcement%2

0as%20PDF.pdf