SmartCraft ASA (SMCRT) - SmartCraft acquires Swedish SaaS company Locka

15 Apr 2024 10:11 CEST

15 April 2024: SmartCraft ASA has acquired Locka Group AB, adding software
solutions within 3D visualization, customer interaction and after-sales service
for the construction industry.

"We have added 10 software companies into the SmartCraft family through
acquisitions over the past seven years, integrating them successfully whilst
simultaneously realizing synergies. We are excited to have the Locka team
joining SmartCraft and to offer their effective and appealing SaaS based
specialized software solutions for 3D visualization, customer interaction and
after-sales service. Locka is a great match for us and adds a wonderful
complement to our existing portfolio of software solutions for the construction
industry," said SmartCraft CEO Gustav Line.

Locka offers powerful and practical tools for 3D visualization, option
management, case management and customer interaction for construction companies
and property developers.

In 2023, Locka's revenue was SEK 37 million (excluding some discontinued
operations) with an EBITDA margin of 10 percent. The company currently has 21
employees and in the first two months of 2024, Locka grew its revenue
organically by 3 percent to SEK 6.2 million (YTD February) with a 16% EBITDA
margin and 10% EBITDA-CAPEX ("cash EBITDA") margin. At the end of 2023
approximately 50 percent of the revenue was recurring.

"Locka has faced challenges but is now in a good position with organic growth
and positive margins. We have a proven history of enhancing the performance,
growth and margins of the companies we have acquired, and we see ample
opportunities to do the same for Locka. SmartCraft will focus on value creation
by applying our established methods to adapt Locka's business model, boost the
company's recurring revenue and shift sales to ARR, like we have done with other
acquisitions in the past" said Gustav Line.

"We are eager to embark on a new chapter of profitable growth as part of the
SmartCraft team. The SmartCraft culture, construction software competence and
the strong track record in building successful SaaS companies for the
construction industry feels like a natural and positive step for us at Locka,"
said Johan Corke, CEO of Locka.

The transaction is based on an enterprise value of SEK 24 million, which will be
settled in cash. The transaction closed today, on 15 April 2024.

Contact

Gustav Line, CEO

Email: gustav.line@smartcraft.com

Phone: +47 952 67 104

About SmartCraft

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 97% 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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