REG - Eurowag - Acquisition of WebEye

WAG Payment SolutionsAnnouncement

15/11/2021 07:05

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RNS Number : 3065S  Eurowag  15 November 2021

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UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

15 November 2021

EUROWAG

Eurowag to acquire WebEye, a leading Fleet Management Solution provider, and
updates on current trading

W.A.G payment solutions plc ("Eurowag", or the "Group") a leading pan-European
integrated payments & mobility platform focused on the Commercial Road
Transportation industry ("CRT"), today announces it has entered into an
agreement to acquire 100% of the share capital of WebEye Telematics Zrt.
("WebEye"), a leading Fleet Management Solution provider in Central and
Eastern Europe, from the founders and management.

WebEye has an established presence in Europe with a total portfolio of more
than 57,000 connected trucks. It is led by Pál Németh, who has been
instrumental in the growth of the company and will remain in the role to
oversee the integration in Eurowag.

Eurowag's acquisition of WebEye will expand the Group's customer base and
WebEye's customers will gain access to Eurowag's unrivalled range of
integrated end-to-end payment and mobility solutions leading to incremental
revenue opportunities. Furthermore, data from the connected trucks will
provide insights and enable the continual development of new and improved
solutions to address customers' needs. The transaction will be funded from
cash on balance sheet and is expected to be immediately earnings accretive.

Upon closing, Eurowag will pay a cash consideration of EUR 38.5 million
taking into account adjustments for net debt and normalised working capital.
Eurowag will also pay a deferred settlement component within three years from
closing, a part of which is subject to the fulfilment of certain KPIs. The
maximum consideration, including the deferred settlement component, is capped
at EUR 55.9 million.

WebEye generated revenues of EUR 16.5 million and normalised adjusted EBITDA
of EUR 4.3 million in the year ended 31 December 2020. Revenues for the
first six months of 2021 were EUR 8.3 million, while normalised adjusted
EBITDA accelerated to EUR 2.6 million thanks to increased profitability of
the business.

Closing of the deal is anticipated in Q1 2022, subject to customary completion
conditions including clearance from the Hungarian Competition Authority,
Romanian Competition Council and Ministry of Innovation and Technology in
Hungary.

Current trading

Trading continues to be consistent with management's expectations and the
Group expects to deliver FY21 revenue in line with medium-term guidance. Key
performance indicators, such as the number of payment solutions active
customers, trucks, and transactions have continued to grow in line with
expected trends.

 

Martin Vohánka, CEO and Founder of Eurowag, said:

"I am pleased to announce the acquisition of WebEye in line with the strategy
we set out at the time of our recent IPO and further expanding our payments
and mobility platform. With integrated services we aim to reduce the impact of
our industry on the environment. The solutions allow to reduce the ratio of
trips with empty load and improve road safety, as the fleet operators can have
a thorough overview of the conditions of their vehicles."

Pál Németh, the CEO of WebEye, said:

"Joining forces with Eurowag opens doors to new markets and offers our
customers access to a wide range of services and solutions for their
businesses to thrive. Eurowag's integrated digital platform helps transport
operators make their business more efficient and more profitable, while making
the lives of truck drivers easier. I am excited to join the Eurowag team and
help achieve its vision to democratize the on-road mobility industry through a
technological revolution."

The acquisition constitutes a class 2 transaction, and this announcement has
been made pursuant of Chapter 10 of the UK Financial Conduct Authority's
Listing Rules.

The person responsible for the release of this announcement on behalf of
Eurowag is Tomáš Novotný (Head of Investor Relations).

 

ENQUIRIES

Eurowag

Tomáš Novotný (Head of Investor Relations)

investors@eurowag.com (mailto:investors@eurowag.com)

 

Michal Malysa (Head of Group Communications)

michal.malysa@eurowag.com (mailto:michal.malysa@eurowag.com)

+420 775 70 80 86

 

About Eurowag

Eurowag was founded in 1995 and is a leading pan-European integrated payments
& mobility platform focused on the commercial road transportation
industry. It makes life simpler for commercial drivers and operators across
Europe through its unique combination of payments solutions, seamless
technology, a data-driven digital eco-system and high-quality customer
service. www.eurowag.com (http://www.eurowag.com)

About WebEye

WebEye was established in 2001 with focus on CRT customers in Hungary. Today
it is the leader in CRT Fleet Management Solution in Hungary and Romania, with
customers in Bulgaria, Croatia, Czech Republic, Germany, Poland, Portugal,
Slovakia, and Slovenia. WebEye generated a profit before tax of
EUR 2.2 million in the year ended 31 December 2020. Its gross assets were
EUR 9.7 million as at 31 December 2020 based on unaudited consolidated
management accounts prepared under Hungarian GAAP.

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