Brief: MilDef Acquires Handheld Group

MilDef AB

12/09/2022 07:39

Sept 12 (Reuters) - MilDef Group AB  MILDEF.ST :
    * MILDEF ACQUIRES HANDHELD GROUP AND ACCELERATES THE PACE IN
THE
STRATEGY FOR PROFITABLE GROWTH
    * TO ACQUIRE ALL SHARES IN COMPANY HANDHELD GROUP AB
    * ACQUISITION ACCELERATES PACE IN MILDEF'S STRATEGY FOR
PROFITABLE
GROWTH, ADDING A COMPLEMENTARY PRODUCT SEGMENT
    * INITIAL PURCHASE PRICE AMOUNTS TO 350 MSEK, WHICH
CORRESPONDS TO
AN EV/EBITDA-MULTIPLE OF APPROXIMATELY 10X, BASED ON HANDHELDS
ESTIMATED EBITDA FOR 2022
    * CASH CONSIDERATION AMOUNTS TO 270 MSEK, IS FINANCED WITHIN
FRAMEWORK OF EXISTING CREDIT FACILITIES WHILST REMAINING 80 MSEK
IS PAID WITH NEWLY ISSUED MILDEF SHARES
    * REMAINING 80 MSEK WILL BE PAID THROUGH NEWLY ISSUED SHARES
IN
MILDEF
    * REVENUE SYNERGIES, MEASURED ON AN ANNUAL BASIS, ARE
ESTIMATED TO
50-100 MSEK
    * REVENUE SYNERGIES ARE EXPECTED TO BE REACHED WITHIN 2-3
YRS
    * COST SYNERGIES, MEASURED ON ANNUAL BASIS, ARE ESTIMATED TO
0-5
MSEK
    * ACQUISITION OF HANDHELD IS ESTIMATED TO HAVE ACCRETIVE
EFFECT ON
MILDEF'S EARNINGS PER SHARE ALREADY FROM AND DURING 2023

Source text for Eikon:  ID:nWkr700mmm 
Further company coverage:  MILDEF.ST 

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