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Correction: Lemonsoft Oyj acquires Logentia Oy and raises its net sales growth forecast for 2022

Correction: The word "Inside Information" was missing from the original announcement. The correction announcement includes the fact that it was inside information.

LEMONSOFT OYJ – INSIDE INFORMATION – 6.5.2022 AT 10.00 EET

Lemonsoft Oyj acquires the entire share capital of Logentia Oy, a software company that specializes in the optimization of transportation costs in industrial and wholesale industries. With the acquisition, Lemonsoft strengthens its offering in industrial manufacturing and wholesale businesses and will offer its customers more possibilities to streamline their business processes by optimizing the use of transportation services. Lemonsoft Oyj and Logentia Oy’s owners have signed the share purchase agreement on 6 May 2022 and the transaction is expected to be completed on 31 May 2022.

Logentia Oy is a software and expert company specialized in managing transports by offering full benefits of visibility in transport agreements to its customers in industrial and wholesales industries as well as for online retail stores. The software optimizes the transport selection, eliminates invoicing errors, improves the reliability of delivery, and reduces the time taken to manage transportations. Logentia Oy has a strong position in optimizing transport services in Finland and is growing in other Nordic countries. The company has 13 employees in its Helsinki office.

Logentia Oy's revenues for the financial year ended 31 December 2021 were EUR 1.5 million (2020: 1.3) and operating profit was EUR 0.7 million (2020: 0.6). More than half of Logentia Oy's revenue is recurring. The balance sheet total on 31 December 2021 was EUR 3.5 million. Non-operating fixed assets of EUR 2.6 million and corresponding non-current liabilities of EUR 0.9 million will be excluded from the transaction.

Logentia Oy will be reported as part of Lemonsoft Group as of 1 June 2022. The founders of Logentia Oy, Tapio Teppo and Eero Valovirta, will continue in the company's service and Tapio Teppo will continue as the CEO of Logentia Oy.

The purchase price of Logentia Oy's entire share capital is approximately EUR 7.8 million. The purchase price consists of a debt-free enterprise value of EUR 6.0 million and a net cash of approximately EUR 1.8 million. 75 percent of the purchase price will be paid in cash and 25 percent in new shares issued by Lemonsoft Oyj. The subscription price for the new shares to be issued is EUR 12.53, based on the volume-weighted average price of the Lemonsoft Oyj’s share on 30-day period preceding the signing of the share purchase agreement. The new shares to be issued in connection with the execution of the transaction correspond to approximately 0.66% of Lemonsoft Oyj’s current shares outstanding.

In addition, the parties have agreed on an additional purchase price based on Logentia Oy's financial results for 2022-2023. The additional purchase price amounts to a maximum of EUR 1.0 million, and if realized, will be paid entirely as share consideration by the end of February 2024.

Kari Joki-Hollanti, CEO of Lemonsoft

“We have already been co-operating with Logentia, and this acquisition will deepen our cooperation further. We are now able to offer our customers more tools to enhance their business. Logentia’s software is modern and very well developed, and we believe that our customers will value the savings achieved in costs and resources by these services. We are also happy to bring in more high-class professionals to Lemonsoft and wish them all welcome.”

Tapio Teppo, CEO of Logentia Oy

“Lemonsoft is a good partner for us, and we will now have the opportunity to be a part of a growing and dynamic company where we can keep on developing Logentia’s software also in the future. We see this transaction as an excellent opportunity to provide Lemonsoft’s wider offering also for our existing customers, together with the support and benefits of a larger organization. I trust that this makes us even stronger and that we will be able to bring cost efficiency to an even wider range of companies.”

Logentia Oy Key figures

Income statement (EUR 1,000) 2021 2020
Net sales 1,541 1,255
EBITDA 753 576
EBITDA, % of net sales 48.9 % 45.9 %
EBIT 737 569
EBIT, % of net sales 47.8 % 45.3 %
 
Balance sheet (EUR 1,000) 31.12.2021 31.12.2020
Assets    
Non-current assets 2,632 1,534
Current assets 640 467
Cash and cash equivalents 213 84
Assets total 3,485 2,086
 
Equity and liabilities
Equity 1,695 1,179
Non-current liabilities 857 263
Current liabilities 934 644
Equity and liabilities total 3,485 2,086

Non-operating fixed assets of EUR 2.6 million and corresponding non-current liabilities of EUR 0.9 million will be excluded from the transaction.

Lemonsoft Oyj updates its profit forecast for 2022

Assuming that the transaction is completed as planned, Lemonsoft has decided to raise its profit forecast for 2022. The reason for the increase is the acquisition of Logentia Oy.

Updated profit forecast for 2022

Lemonsoft estimates that the net sales for the financial year 2022 will increase by 26-32 percent compared to the financial year 2021, and that adjusted EBIT will be 30-35 percent of net sales in 2022.

Earlier profit forecast (published 16 February 2022)

Lemonsoft estimates that the net sales for the financial year 2022 will increase by 23-28 percent compared to the financial year 2021, and that adjusted EBIT will be 30-35 percent of net sales in 2022.

Lemonsoft Oyj

Board of Directors

Further information

Kari Joki-Hollanti
CEO
kari.joki-hollanti@lemonsoft.fi
+358 44 730 9271

Alpo Luostarinen
Director, M&A and IR
alpo.luostarinen@lemonsoft.fi
+358 50 911 3507

Certified advisor
Danske Bank A/S, Finland Branch, +358 40 841 3052

About Lemonsoft Oyj

Lemonsoft is a Finnish software company that designs, develops and sells ERP software solutions to streamline its customers’ processes across different business lines and administration. The extensive offering of software solutions and related services enables the company to provide its customers with holistic service. The company’s standardized and scalable software solutions are delivered mainly from the cloud and are based on the SaaS model in which customers pay a monthly service fee for the use of the software. The company operates in the ERP software market in Finland primarily as a service provider for SMEs. As of the date of this press release, the company’s customer base consists of over 7,000 customer companies using the Company’s software solutions, including customers from especially industrial manufacturing, wholesale and retail, professional services automation, construction and accounting.

Get to know us better at http://www.lemonsoft.fi.

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