Huddlestock Fintech divests of Huddlestock Solutions AS through a management buyout agreement

27 Sep 2023 19:21 CEST

27.9.2023 19:21:30 CEST | Huddlestock Fintech AS | Inside information

Huddlestock Fintech AS (OSE: HUDL) - Huddlestock Fintech divests of Huddlestock
Solutions AS through a management buyout agreement

27.09.2023 19:18:31 CET | Huddlestock Fintech AS | Inside Information

Huddlestock Fintech AS ("Huddlestock") has today signed a sale- and purchase
agreement with former major shareholders and key employees of Huddlestock
Solutions ("Solutions"), formerly F5 IT AS, whereby Huddlestock divests of 100%
of the issued shares of Solutions (the "Divestment"). The Divestment is in line
with Huddlestock's aim of maintaining a sharp focus on its core activity being
Investment-as-a-Service offering.

Huddlestock acquired Solutions, a specialist software development company, in
2022. The acquisition led to the development of a new state of the art trading
engine and other technical solutions, which forms a key part of Huddlestock's
Investment-as-a-Service offering today. With Huddlestock's other recent
acquisitions strengthening this offering, and a portion of Solutions' business
focused in non-financial services sectors, the decision to divest of Solutions
has come about naturally.

"Over the last few years, Huddlestock has acquired several tech companies in
order to expand our capabilities and accelerate growth," said John E. Skajem,
Huddlestock CEO. "We see a great deal of potential in our
Investment-as-a-Service offering, and today's agreement further demonstrates
that we're prepared to take actions necessary to ensure strategic focus and
achieve our goals faster."

Huddlestock's Investment-as-a-Service solution enables companies to launch new
investment services or modernise existing ones. Its offering includes white
label investment experiences, licenced financial services, a trading engine, and
a comprehensive investment management system that was integrated following the
company's most recent acquisition of Bricknode.

IP rights to the trading engine developed by Solutions is owned by Huddlestock
Technologies AS. The trading engine has been incorporated as part of our
complete offering, including the Bricknode core platform. The technological
expertise linked to the trading engine is safeguarded by a strategic agreement
between Huddlestock and Solutions being entered into upon closing of the
Divestment, which ensures dedicated resources and additional capacity for
further development. For Huddlestock, this represents flexibility in the
development capacity, less operational risk and, over time, increased
utilization of the Bricknode environment.

As consideration for the Divestment, Huddlestock receives 1,806,591
Huddlestock-shares to be held as treasury shares. The transaction will have an
annual revenue reduction of approximately MNOK 19 based on historical revenues.
Furthermore, it is expected to have positive EBITDA improvement of MNOK 1.0 in
2023 and another MNOK 1.0 in 2024. The balance sheet will be affected with a
reduction in Q3 of approximately MNOK 5.



Please find enclosed the Press release. For questions, please contact:

John E. Skajem, CEO, +47 418 87 412, jes@huddlestock.com

Leif Arnold Thomas, Chief Corporate Development & IR,
leif.thomas@huddlestock.com

This information is subject to the disclosure requirements according to Section
5-12 of the Norwegian Securities Trading Act.

To see all press and investor releases please have a look in the investor
relations section of our corporate website
www.huddlestock.com/investor-relations -
http://www.huddlestock.com/investor-relations



DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

CONTACTS

* John E. Skajem, Chief Executive Officer, Huddlestock Fintech, +47 418 87 412,
john.skajem@huddlestock.com
* Leif Arnold Thomas, Chief Corporate Development, Huddlestock Fintech -
Corporate Development, +47 982 15 520, leif.thomas@huddlestock.com

ABOUT HUDDLESTOCK FINTECH AS

Huddlestock Fintech is an innovative technology software provider with a leading
expert professional services business. We deliver innovative and sustainable
technology solutions to the capital markets, treasury and wealth management
industries.

Through its technology offering, Huddlestock offers an innovative, compliant,
and data-centric WealthTech SaaS, accelerating the digital transformation, and
trends of hyper-personalization and on-demand banking within the wealth
management industry. Huddlestock's SaaS empowers the embedding of low-cost,
efficient white-label trading and investment services, underpinning
Huddlestock's mission of delivering financial inclusion by democratizing access
to capital markets.

Through its world-class expert professional services business, Huddlestock
delivers strategic technology solutions and process automation for the financial
services industry. This range of services has propelled Huddlestock into
becoming the preferred supplier of financial consultancy services and technology
solutions in the Nordic region. Huddlestock Fintech AS was listed on Euronext
Growth Market 26th November 2020, as Norway's first fintech company to be
publicly traded.

For more information, please visit www.huddlestock.com -
http://www.huddlestock.com/



ATTACHMENTS

Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17848032/2650/3693/Download%20announcement
%20as%20PDF.pdf

More information:
Access the news on Oslo Bors NewsWeb site

600422_Download announcement as PDF.pdf