Loihde increases its cloud expertise by acquiring cloud services company Onrego Ltd and has decided on a directed against payment share issue

Loihde Plc company announcement November 1, 2022 at 7:50 a.m. ET

Loihde strengthens its cloud expertise by acquiring a cloud services company Onrego Ltd and decided on a capital increase directed against payment

Security solutions and digital development expert Loihde strengthens its expertise services in cloud technology, as the company acquires the entire share capital of Onrego Ltd. The expected implementation date of the acquisition is December 1, 2022. In addition, the board of directors of Loihde Plc decided on a directed against payment share issue to the owner of Onrego.

Onrego is a Finnish cloud technology company that provides cloud consulting and continuous cloud solutions services to its customers. In 2021, the company’s turnover amounted to 7.1 million euros (€5.9 million in 2020) and the company’s EBITDA was 0.5 euros (0.0) million. Onrego has around 30 experts working for them.

“Onrego’s expertise and services go very well with Loihde’s offer, because cloud expertise is important for both of Loihde’s business areas: digital development projects today are mainly built on cloud platforms, and as companies move to the cloud, information security management increasingly relies on cloud know-how.As a new area of ​​service, Onrego is expanding our offering with management of the cloud provided as an ongoing service, which is more scalable and offers better margins than consulting,” says the CEO of Loihde. Samu Kontinen.

The cloud technology market is a significant growth market that is expected to grow at an annual rate of 10% in Finland In the coming years. Although cloud transformation has been one of the major shifts in IT in recent years, only a fraction of organizations have ever transitioned all IT functions to the cloud. For the vast majority, the process is underway and cloud technology is being adopted at an accelerating rate. Thanks to Onrego, Loihde is clearly increasing its presence in the cloud market and strengthening its position in the fastest growing area of ​​cybersecurity, namely cloud security.

“For Onrego, Loihde is a great home as we embark on our next phase of growth. We were a pioneer in cloudification and cloud platforms, and I’m very proud of our people and our customers and what Onrego is and stands for. With the help of Loihde, we are able to accelerate our growth journey and provide our employees with great opportunities. By using Loihde’s capabilities in, for example, information security, data and software development, we are able to create a service offering that benefits our customers even faster than before. Since our values ​​and cultures are also very similar, I see this as a great fit for both of us,” says the CEO of Onrego. Jarno Maki.

The debt-free price of the transaction is 4.3 million euros and it is paid entirely in cash. In addition, the parties have agreed to a reinvestment by the owner of Onrego Ltd, which is worth approximately €600,000, or approximately 14% of the total transaction price. The acquisition does not affect Loihde’s outlook for 2022 or financial targets for the strategic period 2021-2024.

Issuance directed against payment

The board of directors of Loihde Plc has decided on a directed share issue against payment to the owner of Onrego Ltd, Roaring Aspen Hill Ltd, in which a maximum of 50,000 new shares of the company may be issued. From the company’s point of view, there is a strong economic reason for waiving shareholders’ preferential subscription rights, the capital increase being linked to the completion of an acquisition in line with the company’s strategy.

The subscription period for shares is December 1, 2022 and the subscription price is €11.99 per share, which corresponds to the volume-weighted average price of Loihde Plc shares traded on the Nasdaq First North Growth Market Finland between July 29 and October 28, 2022. The shares must be paid up at the time of subscription. The subscription price will be credited to the Company’s invested equity reserve.

The new shares will be registered The commercial register on or about December 14, 2022 and listed for trading with the old shares on the Nasdaq First North Growth Market Finland, managed by Nasdaq Helsinki Ltdon or about December 15, 2022. Following the issuance of shares, the total number of shares of Loihde Plc increased to a maximum of 5,728,254 shares.

The decision to increase capital directed against payment is based on the authorization of the General Meeting of shareholders held on May 5, 2022.

More information

Loihde:
CEO Samu Kontinenmedia contact: director of communications Tiina Nieminen, Phone. +358 44 411 3480 or [email protected]

In progress :
CEO Jarno Maki[email protected]

Loihde enables business continuity.We help our clients create growth and competitiveness through digitalization and protect themselves from physical and cyber threats.Loihde consists of two business areas: security solutions with the brand Loihde Trustand digital development with the Loihde Advisory, Loihde Analytics and Loihde Factor brands.The Group has approximately 850 employees and its turnover in 2021 amounts to €108.1 million.

Attachments

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Veronica J. Snell