Huddlestock Fintech AS
Huddlestock Fintech AS
05/12/2022 | Press release | Distributed by Public on 05/12/2022 00:09
Huddlestock Fintech AS (OSE: HUDL) signs term sheet to acquire 100% of Tracs group of companies including a full investment banking license.
Tid12.05.2022, 06:09:25
MeldingsID561968
UtstederIDHUDL
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Huddlestock Fintech AS (OSE: HUDL) signs term sheet to acquire 100% of Tracs group of companies including a full investment banking license.
12.5.2022 08:09:23 CEST | Huddlestock Fintech AS | Inside information
Huddlestock Fintech AS, a provider of innovative technology solutions to the
capital markets, treasury, and wealth management industries, today announces
entering into an agreement with the intention to acquire 100% of Trac Services
AS and Trac Technology AS, which includes Norwegian FSA licenses (
https://www.finanstilsynet.no/virksomhetsregisteret/detail/?id=178674), giving
the Huddlestock Group increased revenue potential and higher margins on their
existing portfolio of wealth management products. The term sheet is the second
agreement, next to F5 IT, signed to accelerate growth and deliver on the
ambition of becoming the largest B2B Fintech service and technology provider in
Europe. Signing of SPA agreement and closing of the transaction is expected
before the end of June 2022.
"This acquisition will give Huddlestock the necessary license upgrade that we
communicated we would target in our latest round of fund raising. In addition,
we get a suite of complementary wealth management products, and improve our
annual recurring technology revenues with an estimated NOK 14.1 million per
year. Together with the intended acquisition, we will bring 8 highly committed
employees, and the institutional investor, Njord Group, onboard. Similar to the
acquisition of F5 IT, the acquisition the Tracs group of companies, is an
all-share deal which shows the faith owners and managers put in our ability to
build a solid and valuable business," says John Skajem, CEO of Huddlestock.
The agreement will give the owners of Trac Services and Trac Technology
ownership equal to 9% of the outstanding shares in Huddlestock after the
issuance of new shares. In addition, there will be a bonus of 3% shares, if the
Huddlestock Group reaches a total revenue of NOK 100 million with an EBITDA
margin equal to 5% in 2023. The main shareholder in both Trac companies is the
Glastad shipping family, through Njord Group AS. Glastad has been an industrial
investor for over 100 years and have broad ownership interests in Norway, as
well as internationally. The family will subsequently become one of the largest
institutional shareholders and investor in the Huddlestock Group. Two
representatives from Glastad are set to join the Huddlestock board of directors
once the transaction is concluded.
"Trac Services brings over 18 years of experience from the financial industry,
and currently have 12.000 end clients and approximately NOK 4 billion in assets
under management. Together with our investment banking license, we see strong
synergies between Huddlestock and Trac Services. Combined we will be one of the
largest B2B Fintech providers in Europe, and can increase our revenues and
margins, opening for rapid expansion of the business. As institutional and
long-term investors we strongly believe in the value proposition of Huddlestock,
and see a profitable future together," says Jan Sigurd Vigmostad, Chairman of
Trac Services AS and Trac Technology AS.
DISCLOSURE REGULATION
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
CONTACTS
* Cecilia Luras, Director of Strategy & Investor Relations, +47 951 45 382,
[email protected]
* John E. Skajem, CEO, +47 418 87 412, [email protected]
ABOUT HUDDLESTOCK FINTECH AS
Huddlestock Fintech delivers innovative 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 is regulated by Bafin and
was listed on Euronext Growth Market 26 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/17848032/1444/1967/Download%20announcement
%20as%20PDF.pdf
Huddlestock Fintech AS, a provider of innovative technology solutions to the
capital markets, treasury, and wealth management industries, today announces
entering into an agreement with the intention to acquire 100% of Trac Services
AS and Trac Technology AS, which includes Norwegian FSA licenses (
https://www.finanstilsynet.no/virksomhetsregisteret/detail/?id=178674), giving
the Huddlestock Group increased revenue potential and higher margins on their
existing portfolio of wealth management products. The term sheet is the second
agreement, next to F5 IT, signed to accelerate growth and deliver on the
ambition of becoming the largest B2B Fintech service and technology provider in
Europe. Signing of SPA agreement and closing of the transaction is expected
before the end of June 2022.
"This acquisition will give Huddlestock the necessary license upgrade that we
communicated we would target in our latest round of fund raising. In addition,
we get a suite of complementary wealth management products, and improve our
annual recurring technology revenues with an estimated NOK 14.1 million per
year. Together with the intended acquisition, we will bring 8 highly committed
employees, and the institutional investor, Njord Group, onboard. Similar to the
acquisition of F5 IT, the acquisition the Tracs group of companies, is an
all-share deal which shows the faith owners and managers put in our ability to
build a solid and valuable business," says John Skajem, CEO of Huddlestock.
The agreement will give the owners of Trac Services and Trac Technology
ownership equal to 9% of the outstanding shares in Huddlestock after the
issuance of new shares. In addition, there will be a bonus of 3% shares, if the
Huddlestock Group reaches a total revenue of NOK 100 million with an EBITDA
margin equal to 5% in 2023. The main shareholder in both Trac companies is the
Glastad shipping family, through Njord Group AS. Glastad has been an industrial
investor for over 100 years and have broad ownership interests in Norway, as
well as internationally. The family will subsequently become one of the largest
institutional shareholders and investor in the Huddlestock Group. Two
representatives from Glastad are set to join the Huddlestock board of directors
once the transaction is concluded.
"Trac Services brings over 18 years of experience from the financial industry,
and currently have 12.000 end clients and approximately NOK 4 billion in assets
under management. Together with our investment banking license, we see strong
synergies between Huddlestock and Trac Services. Combined we will be one of the
largest B2B Fintech providers in Europe, and can increase our revenues and
margins, opening for rapid expansion of the business. As institutional and
long-term investors we strongly believe in the value proposition of Huddlestock,
and see a profitable future together," says Jan Sigurd Vigmostad, Chairman of
Trac Services AS and Trac Technology AS.
DISCLOSURE REGULATION
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
CONTACTS
* Cecilia Luras, Director of Strategy & Investor Relations, +47 951 45 382,
[email protected]
* John E. Skajem, CEO, +47 418 87 412, [email protected]
ABOUT HUDDLESTOCK FINTECH AS
Huddlestock Fintech delivers innovative 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 is regulated by Bafin and
was listed on Euronext Growth Market 26 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/17848032/1444/1967/Download%20announcement
%20as%20PDF.pdf