EQS-Adhoc: EPTI AB: EPTI enters into an agreement to acquire two affiliate companies

EQS-Ad-hoc: EPTI AB / Key word(s): Acquisition/Acquisition
EPTI AB: EPTI enters into an agreement to acquire two affiliate companies

16-Feb-2023 / 09:40 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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EPTI AB (publ) ("EPTI" or the "Company") has today, through its subsidiary EPTI Marketing AB entered into an agreement to acquire two affiliate companies within the iGaming industry. The acquisitions are expected to contribute an EBITDA result of approximately SEK 33 million to EPTI Service in 2023. The purchase price amounts to a total of EUR 4.7 million in cash, payable in two tranches. Initially, EUR 3.5 million (approximately SEK 40 million) will be paid and the remaining EUR 1.2 million (approximately SEK 13 million) will be paid approximately 12 months after the completion of the transactions. The transfer agreements are conditional on EPTI securing financing by March 31, 2023. The company's intention is to finance the acquisitions through a combination of loans and cash, and thereby avoid dilution for existing shareholders in EPTI.

"EPTI continues the communicated strategy to streamline EPTI's business model with a greater focus on EPTI Service and its software development and marketing services. We see great potential in the acquired companies which contribute with strong cash flows and solid lead generation resources," said Arli Mujkic, CEO and Founder, EPTI.

Background and rationale
The acquired companies are two prominent affiliate players in iGaming. In April 2022, EPTI AB acquired the SEO company EPTI Marketing, which is organizationally part of the EPTI Service business area. By acquiring additional affiliate partners, EPTI Marketing strengthens its already existing offer in so-called lead generation. The acquired companies will be part of EPTI Marketing and are expected to contribute positive cash flow to EPTI Service.

Purchase price and financing
The purchase price amounts to a total of EUR 4.7 million in cash, payable in two tranches. Initially, EUR 3.5 million (approximately SEK 40 million) will be paid and the remaining EUR 1.2 million (approximately SEK 13 million) will be paid approximately 12 months after the completion of the transactions. The transfer agreements are conditional on EPTI securing financing by March 31, 2023. The company's intention is to finance the acquisitions through a combination of loans and cash, and thereby avoid dilution for existing shareholders in EPTI.

Financial impact
The acquired companies are expected to generate total net sales of SEK 45 million and contribute an EBITDA result of approximately SEK 33 million to EPTI Service in 2023.

Closing of the transaction
Closing of the acquisitions of Emwys AB and Aviate Leads CY LTD including related assets will take place upon payment which according to the agreement will be made no later than 31 March 2023.

For further information, please contact:

Arli Mujkic, CEO, EPTI AB
E-mail: [e-mail]
Phone: [phone]

About EPTI

EPTI is a Technology Service group with an investment arm. Through two business areas; Service and Invest, EPTI develops and invests in digital business ideas with the aim of helping prominent entrepreneurs and founders to build market-leading innovative companies. Since its inception in 2017, EPTI has built up a portfolio consisting of more than 25 companies within both the business areas Service and Invest. The company operates in eight countries around Europe and has approximately 200 employees. The head office is located in Stockholm. EPTI's shares are listed on the Nasdaq First North Growth Market and admitted to trading on the Börse Frankfurt Open Market.

For more information, see EPTI's website www.epti.com

The Company's Certified Adviser is Eminova Fondkommission AB | [phone] | [e-mail]

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16-Feb-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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Language:	English
Company:	EPTI AB
	Linnegatan 87A
	11523 Stockholm
	Sweden
Phone:	[phone]
E-mail:	[e-mail]
Internet:	https://epti.com/
ISIN:	SE0013774668
WKN:	A2P4CT
Listed:	Regulated Unofficial Market in Frankfurt, Stuttgart; Stockholm
EQS News ID:	1561169

End of Announcement	EQS News Service

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1561169 16-Feb-2023 CET/CEST