“During the third quarter of the year, we have worked goal-oriented on divesting portfolio companies, reducing indebtedness, and streamlining the business with a focus on AI. During the third quarter of the year, our efforts resulted in a turnaround...
EPTI AB (publ) today announces a summary of the operational development within the Group during the first half of 2022. The financial development is presented in the company's half-year report, which has been postponed and will be published on August 31, 2022.
To increase transparency and give investors and shareholders a better insight into the development of the Group and its portfolio companies, EPTI will provide an operational update on a half-yearly basis from now on.
EPTI AB (publ):
- To clarify the group structure, EPTI has established three business areas; Core (service companies), Incubation (majority ownership) and Growth (minority ownership). The latter two include companies in the Gaming, Fintech, Marketplace and Software as a Service (SaaS) segments. At the time of this press release, the number of portfolio companies amounts to 25, of which 13 are majority-owned.
- In the first half-year period, EPTI has completed four majority acquisitions; Moblrn – Mobilized Learning AB, Linky Tech AB, Adhype AB and Mäklarappen i Sverige AB (under name change to Immomer). The purchase price for all acquisitions included a combination of cash and newly issued shares in the parent company EPTI AB (publ) at a price of SEK 7.89 per share.
- In March 2022, EPTI carried out a directed share issue of SEK 16.25 million at a subscription price of SEK 7.89 per share to Aggregare Media. The share issue adds significant marketing resources to EPTI which fortifies the Group’s deep operational support and facilitates offensive brand initiatives.
- The current macroeconomic situation has created opportunities to acquire companies at lower valuations compared to levels at the turn of the year. EPTI continuously revises its portfolio to maintain a good balance between risk and cash flow. The Group is currently focusing on supplementing the portfolio and business area Core with cash flow-positive service companies. At the end of the period Q1 2022, EPTI had investable capital of SEK 39 million.
- Employee satisfaction (eNPS) amounts to eNPS 88 on a scale from -100 to +100 with a response rate of 89 percent.
EPTI Core AB:
- In total, the service companies within the business area Core, have entered into 10 new and renewed 22 agreements. The number of employees in Core has increased by around 24 percent compared to the same period last year (H1 2021). The business area operates with an occupancy rate of over 97 percent.
- On April 19, 2022, EPTI acquired 100 percent of the shares in the SEO company Adhype AB. In 2022, Adhype is expected to generate net sales of SEK 8.2 million and contribute with an EBITDA result of approximately SEK 7.5 million to EPTI Core AB. The purchase price amounted to approximately SEK 22 million and was paid with a combination of cash and newly issued shares in the parent company EPTI AB (publ) at a price of SEK 7.89 per share.
- EPTI has, within the framework of the business area Core, started a new company; EPTI Capital AB. The newly started company aims to assist with financing around acquisitions and growth within the business area. Initially, the company plans to raise SEK 50 million on an ongoing basis during the second half of 2022. For additional financing opportunities, EPTI Capital AB is evaluating collaboration with several external suppliers of growth capital. The company and the capital raise are intended for acquisitions in the range of SEK 150-200 million in the coming period. Acquisition targets include cash flow-positive service companies within technology/IT, sales and marketing.
- Employee satisfaction (eNPS) amounts to 66 on a scale from -100 to +100 with a response rate of 83 percent.
EPTI Incubation AB:
- EPTI's majority-owned portfolio company InBanner AB has signed new customer collaborations with Mr Gamle and XL-Media, among others. In addition, InBanner has also achieved a 180 percent better conversion rate compared with traditional advertisements. Moreover, Inbanner has issued a convertible loan of SEK 5 million to its existing owner Trustly to enable continued expansion.
- During the first half-year period, EPTI's majority-owned portfolio company Invajo AB renegotiated existing agreements and won several large prestigious clients such as the Swedish Environmental Protection Agency, Jensen Education, Akademikonferens, Berghs School of Communication, Malmö University, Polynom Invest, Canon, Nordic Meetings, GoGotland, UNICEF Gala, Universal Music Group, Svenska bankföreningen, PS Occasion, Skansen, Onemotion, Life event, etc. Invajo has also continued to invest in security and data protection by moving operations and servers to a Swedish supplier. The company has also started offering card payment solutions such as Netaxept, which makes Invajo one of the few complete suppliers in event management in Sweden to offer its product to authorities and public institutions.
- On May 6, 2022, EPTI's majority-owned company Linky Tech AB announced a reverse acquisition of ApParkingSpot AB (publ). The company launches its new combined parking service in over 100,000 parking spaces through agreements with, among others, Parkman and Apcoa and the hotels First Hotel Kungsbron, Scandic Backadal and Radisson Blu Waterfront.
- EPTI's majority-owned SaaS company Moblrn – Mobilized Learning AB has signed several new agreements during the first half of the year, including international customers such as Panasonic HVAC and Malaysia's largest bank, Maybank. The company is entering a new expansive phase and continues to recruit to meet the increased demand.
EPTI Growth AB:
- In the first half-year period, EPTI's minority-owned portfolio company Apotekamo AB increased order intake by 740 percent compared with the same period last year. Apotekamo has begun a capital round where the company plans to raise approximately SEK 26.5 million from existing and new owners on a pre-money valuation of SEK 150 million. EPTI intends to invest a total of SEK 5 million to support Apotekamo's continued expansion. Following transactions during the first half of 2022, EPTI's holding in Apotekamo amounts to 49 percent.
- In the first half-year period, EPTI's minority-owned portfolio company Workamo AB increased sales by 795 percent compared with the same period last year. The company has also initiated a capital round of SEK 10 million on a pre-money valuation of SEK 50 million. Existing owners, including EPTI and PE Accounting, will subscribe in the issue. Following transactions during the first half of 2022, EPTI's holding in Workamo AB amounts to 49 percent.
- EPTI's minority-owned portfolio company d1 technology AB has entered into an agreement with Destination Kiruna Lapland and Visit Östersund to utilize the company's in-ad widget for travel bookings. The agreement is of great strategic importance for d1's continued development in the destination booking segment. The company has also successfully integrated its technical solution with several booking systems such as Rezdy, Hotsoft, Silverrail and Kiwi. After transactions during the first half of 2022, EPTI's holding in d1 technology AB amounts to 47 percent.
- EPTI's minority-owned portfolio company Triggy AB has carried out a financing round in which the company received SEK 12 million from, among others, the Venture Capital company IKIGAI with heritage from SiGMA. Pre-money valuation amounted to SEK 12 million. During the first half-year period of 2022, Triggy has initiated cooperation with a number of new customers, including the casino company Bally’s and the online betting company Interwetten.
- EPTI's minority-owned company Figital Market Group AB launched its omni solution in retail in June together with an Israeli gaming company licensed in Sweden. Thus, the company becomes the third authorized company to sell games in retail after ATG and Svenska Spel. Through Figital's platform, a billion market is opened up for other gaming companies to sell gaming products and identify new customers. The company is preparing for an expansion in several stores during the autumn and evaluates launch in additional markets.
- EPTI's minority-owned company StoreChatt (Leader Island AB), a SaaS service for retail stores, completed a fully subscribed financing raising during the period. The capital is intended to finance continued product development and sales activities. StoreChatt has also signed a customer agreement with Coop Väst, which means that the product will be launched in 171 stores.
- EPTI's minority-owned company SPACE – Contemporary Digital Culture Center AB, an e-sports and digital cultural center at Sergels torg in Stockholm, hosted several major events during the first half of the year. Among them, the final of the FIFA eChampions League, the official e-sports version of the UEFA Champions League as well as the Swedish Elite Series in Counter-Strike: Global Offensive.
For further information, please contact:
Arli Mujkic, CEO, EPTI AB
E-mail: [email protected]
Phone: +49 176 626 999 64
Adam Bäckström, CFO, EPTI AB
E-mail: [email protected]
Phone: +46 73 026 68 26
EPTI invests capital and operational support for companies, entrepreneurs and founders to build market-leading innovative companies under the motto “We Empower Innovation”. As a company builder, this is done by adding experience from other founders, capital, resources, processes, state-of-the-art technology as well as commercial execution and marketing. EPTI also starts companies and joint ventures with driven co-founders and companies. The companies in EPTI’s portfolio are in the segments Gaming, Fintech, Marketplace, SaaS and Core. Since the start in 2017, a portfolio of more than 25 companies has been built up, of which the majority-owned companies comprise a total of approximately 200 coworkers in eight countries around Europe. EPTI is more than an investment company, it is partly an investment company and partly a service company. A company builder for founders, by founders.
For more information, see EPTI’s website www.epti.com
The Company’s Certified Adviser is Eminova Fondkommission AB | +46 (0)8-684 211 00 | [email protected]