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Lemonsoft Oyj acquires the entire share capital of Finazilla Oy, a software company specializing in business reporting, budgeting and forecasting. In connection with the transaction, Finazilla Oy acquires the business of Finazilla Oy’s parent company, Taloushallintaan fi Oy, which offers financial process optimization and enhancement services with Finazilla’s software. With the acquisition, Lemonsoft strengthens its offering in financial management solutions by offering its customers more comprehensive tools for managing the business information from ERP systems and for financial forecasting.

Finazilla is a cloud software solution for budgeting, reporting and continuous business planning, suitable for companies of all sizes for which financial planning and its active monitoring are part of decision-making. With Finazilla, companies can build profit and loss, balance sheet and cash flow budgets, in addition to sub-budgets for sales, purchases, personnel and investments. Finazilla Oy's customers are SMEs both directly and through partnering accounting firms. Taloushallintaan fi Oy offers financial monitoring, reporting and analysis services to SMEs utilizing Finazilla's software solution. The acquired businesses employ a total of 15 employees in their Jyväskylä office.

The combined net sales of the acquired businesses for the financial year ended 31 December 2021 were EUR 1.2 million (2020: 1.0) and EBITDA was EUR 0.2 million (2020: 0.2). According to the companies’ own reporting principles, 47% of the combined net sales in 2021 was SaaS revenue, 38% other recurring revenue and 15% implementation and additional services. The acquired businesses will be reported as part of Lemonsoft Group as of July 2022. The founders of the acquired businesses, Juhamatti Hyyppä, Jari-Pekka Hyyppä and Hannu Hyyppä, will continue in Finazilla Oy’s service and Juhamatti Hyyppä will continue as CEO of Finazilla Oy.

The total purchase price of the acquired businesses is approximately EUR 2.8 million. The purchase price consists of a debt-free enterprise value of EUR 2.6 million and a net cash of approximately EUR 0.2 million. The purchase price will be paid in cash at signing. In addition, the parties have agreed on an additional purchase price based on Finazilla Oy's net sales for 2022-2025. The additional purchase price amounts to a maximum of EUR 1.5 million, and if realized, 50% of the additional purchase price will be paid in cash and 50% in new shares issued by Lemonsoft Oyj.

Kari Joki-Hollanti, CEO of Lemonsoft:

"We are pleased to obtain more comprehensive tools for business information management and financial forecasting through Finazilla. Companies' need for information is constantly growing and we want to make this information easily available, both as a service and through comprehensive reports. I believe this will benefit all our customer industries."

Juhamatti Hyyppä, CEO of Finazilla Oy:

"We are happy to be part of a larger unit that wants to develop and build on the work we have started. We have created a strong solution for our customers and now we can expand our customer base and complement Lemonsoft's already comprehensive offering."

The combined key figures for the acquired businesses

Lemonsoft Oyj updates its profit forecast for 2022

Along with the acquisition, Lemonsoft has decided to raise its profit forecast for 2022.

Updated profit forecast for 2022

Lemonsoft estimates that the net sales for the financial year 2022 will increase by 30-36 percent compared to the financial year 2021, and that adjusted EBIT will be 28-33 percent of net sales in 2022.

Earlier profit forecast (published in connection with the acquisition of Logentia Oy on 6 May 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.

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. The company’s customer base consists of from especially industrial manufacturing, wholesale and retail, professional services automation, construction and accounting industries.