NORBIT to broaden the ITS business with European acquisition

Trondheim, 18 January 2021: NORBIT is currently in advanced and exclusive negotiations regarding an add-on acquisition of an undisclosed European company. The acquisition will create a broader platform for growth within the ITS business segment. NORBIT has signed a term sheet to this effect.The target company has, with its strong in-house competence, developed a technology including both hardware and software for vehicle and asset tracking and has several thousand customers, with a substantial share of recurring subscription-based revenues.A preliminary transaction price has been agreed, valuing the target company at an enterprise value of EUR 14.5 million, based on an expected 2020 EBITDA¹ of approximately EUR 2 million representing an EBITDA margin² in excess of 35 per cent.The transaction price and completion of the transaction are subject to due diligence and the audited accounting figures for the fiscal year ending 31 December 2020. The parties are working according to an agreed timeline with closing by end of first quarter 2021, contingent on obtaining necessary regulatory approval.For further queries, please contact:
Per Jørgen Weisethaunet, CEO, +47 959 62 915
Per Kristian Reppe, CFO, +47 900 33 203About NORBIT ASA
NORBIT is a global provider of tailored technology to carefully selected niches. The company’s business is structured to address its key markets; Oceans is offering tailored technology solutions to global maritime markets, Intelligent Traffic Systems (ITS) is offering connectivity solutions for vehicle identification and tracking, and Product Innovation and Realization (PIR) is offering R&D services and contract manufacturing to key customers.NORBIT is headquartered in Trondheim, Norway, with manufacturing facilities in Selbu and Røros, Norway and 14 offices and subsidiaries around the world.For more information: www.norbit.comThis information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.Alternative performance measures and definitions:1) EBITDA is short for earnings before interest, tax, depreciation and amortization. EBITDA corresponds to operating profit before depreciation and amortization
2) EBITDA margin is defined as EBITDA divided by total revenuesBoth EBITDA and total revenues are according to the local accounting standards of the target company.