SmartCraft ASA (SMCRT) - Strengthened leadership within software for electricians through acquisition of Inprog

05 Oct 2022 07:30 CEST

5.10.2022 07:30:01 CEST | SmartCraft ASA | Non-regulatory press releases

5 October 2022: SmartCraft ASA has entered into an agreement and completed the
acquisition of all the shares of Inprog AS, adding additional customer base and
valuable competence and software solution in the electro domain to SmartCraft's
portfolio.

"Through the acquisition Inprog, SmartCraft strengthens our market-leading
portfolio of SaaS based services for craftsmen and contractors in the Nordics,
and we are increasing our portfolio in the electro domain even further," said
Gustav Line, CEO of SmartCraft.

The acquisition of Inprog is the second acquisition within the electro space
during 2022.

"Our goal is to provide the best solutions for electricians in the Nordics, and
with the recent additions to our portfolio I can say that we are among the very
best. This is good news for our customers", said Gustav Line.

"Similarly to Elverdi, which SmartCraft acquired in June this year, Inprog shows
a solid ARR growth of 20% at the end of June and the software solution is
gaining commercial traction. EBITDA is positive, and SmartCraft expects to
realize synergies in sales and costs both near term and in the future. The
solution is today used by 250 electrician companies with 1600 users," said
Gustav Line.

The Inprog solution, ELinn, is cloud based and made by electricians for
electricians. ELinn is intuitive and easy to use and has gained traction
especially among customers requiring a tool for their electricians out in the
field. Today, the solution is popular among the smaller and newly established
electrician companies as the functionality and flow in the solution is intuitive
and attractive to this customer group. However, going forward the standardized
solution and ease of use can be utilized by larger electro companies.

"We are very excited about becoming part of the SmartCraft Group. When we
founded Inprog we saw a need for a good digital tool for electricians on site
and have developed our SaaS solution to an intuitive and easy to use solution
which has become very popular among our customers. We have proven that there is
a need for this in the market and are very pleased to continue the commercial
journey with SmartCraft which we regard a leader in the Nordics," said Roald
Stene, Managing Director at Inprog.

Inprog had NOK 4.3 million of revenue in 2021, of which 99% was recurring. The
EBITDA was NOK 1.7 million in 2021, a margin of 41%. Inprog is based in Verdal
in middle of Norway and has 4 employees.

"Inprog is our ninth acquisition, and so far, all the other acquisitions have
been successful with growth both in revenue and EBITDA. We have an active
approach to M&A and consolidating of the industry is a key part of SmartCraft's
strategy. Through the acquisition of Inprog, we expect to achieve further
synergies with our existing services for construction companies," said Gustav
Line.

The purchase price for the shares is NOK 14.2 million which was paid in cash.
Additionally, the sellers can achieve an earnout of up to NOK 4 million based on
EBITDA performance in 2023.

Roald Stene and Tom Stallvik, founders and two of the sellers of Inprog, have
undertaken to acquire shares in SmartCraft on the open market for a total amount
of NOK 1 million, within six months of SmartCraft's acquisition of Inprog. The
shares acquired by Roald Stene and Tom Stallvik will be subject to a 12-month
lock-up period after the completion of the share acquisition.

CONTACTS

* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com

ABOUT SMARTCRAFT ASA

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 95% 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.

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