LumenRadio AB (publ) (“LumenRadio”) has announced that it has entered into a binding agreement to acquire Radiocrafts AS (“Radiocrafts”), a wireless communication technology company, for an initial purchase price of 85 MNOK. This strategic acquisition adds another business area (Smart Metering) to LumenRadio and broadens the company’s existing product portfolio and customer base.
Radiocrafts
Radiocrafts is a well-established player in wireless communication and develops radio modules and network solutions for various industries, such as smart grids and energy management, water distribution and irrigation systems, solar panel and inverter control, and other industrial applications. The company is primarily growing in its main area of expertise, namely “Smart Metering,” which involves wireless measurement of electricity, gas, heat and water. By enabling remote meter and sensor reading, and actuator control, their technology contributes to optimised energy and resource utilisation.
The company was founded in 2003 and is privately owned. The majority owner is co-founder and CEO Peder Martin Evjen. Until 2021, the company has had relatively steady revenue growth. In 2022, a greater commercial success was achieved, as revenues increased by 79.6% to NOK 38.8 million. The company currently employs twelve professionals working globally from its headquarters and production centre in Oslo, Norway.
After the transaction, Radiocrafts will operate as a separate business area within LumenRadio, with Peder Martin Evjen, co-founder and CEO of the company, joining LumenRadio’s management team.
Transaction overview
The purchase price for Radiocrafts is set at 85 MNOK, with a potential additional purchase price of up to 30 MNOK, which payment will be finalised in the first quarter of 2026, subject to the achievement of certain profitability targets.
The acquisition will be financed 70% through cash payment and 30% through a directed new share issue to Radiocrafts’ shareholders. The directed new share issue is carried out by the board’s utilisation of the authorisation granted by the annual general meeting in 2023. The reason for deviating from the preferential rights of the shareholders is to enable the company to capitalise on the business opportunity that the acquisition is deemed to represent. The board considers the partial payment of the company’s shares as an advantage for both the company and its shareholders. This is due in part to the maintenance of a strong financial position for the company. Additionally, the substantial ownership stake that Radiocrafts’ owners will hold in LumenRadio is expected to foster favourable circumstances for a successful integration and the continued growth of Radiocrafts’ business. The subscription price for the directed new share issue is set at a level corresponding to the weighted average share price during the last 30 days at the signing of the agreement, i.e., 132,06 SEK per share. By setting the subscription price based on the market price of the company’s shares, the board considers it to be reasonable and in line with market conditions.
The transaction is expected to be completed on September 1, 2023.
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