REG - Journeo PLC - Acquisition of MultiQ

JourneoAnnouncement

20/09/2023 07:00

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RNS Number : 9872M  Journeo PLC  20 September 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.

20 September 2023

Journeo plc

("Journeo, the "Company" or the "Group")

Acquisition - Investment in geographic expansion and SaaS

Journeo plc (AIM: JNEO), a leading provider of information systems and
technical services to transport operators and local authorities, is pleased to
announce completion of the acquisition of the entire issued share capital of
MultiQ Denmark A/S ("MultiQ") for a total consideration of €2.5m on a debt
free cash free basis (the "Acquisition").

MultiQ is a leading full-service provider of Intelligent Transport Systems
("ITS") with customers in Denmark, Sweden and Iceland. The Acquisition will
provide opportunities for cross-selling of products, technologies and software
and strengthens Journeo's presence in the Nordic market, where it already
operates in Stockholm.

Based in Aarhus, Denmark, MultiQ is one of the market leaders in developing
and supplying public information systems for bus travel, such as fleet
management software and on-board passenger infotainment, indoor and outdoor
real-time display systems. Founded over 15 years ago, MultiQ has a reputation
for high quality design and installation of travel information display
systems. Its customers include Passenger Transport Authorities ("PTAs") and
local authorities Passenger Transport Operators ("PTOs").

MultiQ was part of a larger group which was acquired by Vertiseit, a Swedish
based retail technology company specialising in digital in-store media in May
2022. In January 2023 the retail digital media assets and a number of
employees of MultiQ were transferred out to Dise, a Vertiseit subsidiary,
leaving MultiQ as a purely ITS focussed business.

The cash consideration of €2.5m is being satisfied through the payment of
€2.1m on completion of the Acquisition, with two deferred payments of
€0.2m at 12 months and 24 months following completion, all funded from the
Company's existing cash resources.

The consideration for the shares is €1.7m after the repayment of an
intercompany balance of €0.8m.  The acquired net assets are €1.1m, with
goodwill expected to be €0.6m.  Management expects MultiQ's revenue for the
current year to 31 December 2023 will be approximately €3.3m, with an
operating profit of €260k, representing an acquisition multiple of 2.3x.

Russ Singleton, Chief Executive of Journeo plc, commented:

"The acquisition of MultiQ provides Journeo with an established, full-service
provider of Intelligent Transport Systems in Denmark and further strengthens
our expansion into the Nordic markets. MultiQ has a leading position and
strong SaaS based sales approach with approximately 40% recurring revenue that
will complement our existing offering and bring further scale to our
cloud-based applications".

 

A digital copy of this announcement will be available on the Group's website:
www.journeo.com (http://www.journeo.com) .

 

For further information, please contact:

 Journeo plc                                               +44 (0) 203 651 9166

Russ Singleton/ Nick Lowe
 Cavendish Securities plc - Nominated Adviser and Broker  +44 (0) 207 220 0500

Katy Birkin/ Callum Davidson

Notes to editors:

Journeo plc is a leading Intelligent Transport Systems provider, delivering
solutions in towns, cities, airports, and the public transport networks that
connect them. The Company works extensively with local and combined
authorities, Network Rail and many of the largest multinational transport
operators, supporting them as systems converge towards a more efficient and
sustainable future.

 

Prior to the acquisition, the business had three operating companies:

·    Journeo Fleet Systems Ltd: CCTV video surveillance to improve
passenger & driver safety, telematics for vehicle and driver performance
monitoring, real-time communications for remote condition monitoring and
automatic passenger counting.

·    Journeo Passenger Systems Ltd: design, manufacture, installation, and
management of hardware and software for electronic public transport
information systems, in and around towns, cities, ferry terminals and airports
which includes smart-ticketing and wayfinding.

·    Infotec Ltd: design, advanced manufacture, installation and software
management of information displays hardware for rail applications in stations,
on-platform and on-vehicle.

 

In the last 4 years, the Company has invested over £5 million in research and
development, enabling it to design and supply powerful innovative solutions
for customers' complex requirements and the demands of modern public
transport. With an Internet of Things ("IoT") approach and open standards,
together with field-proven and reliable engineering, Journeo is able to offer
flexible, scalable products and services that can integrate with existing
technology while preparing for future advancements.

 

 

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