Irisity AB has entered into an agreement to acquire 100 percent of the shares of Agent Vi.
The consideration of USD 67,5M will be paid partly in cash USD 8M and partly in Irisity shares USD 59,5M.
“We are very happy in welcoming this successful team to Irisity. Agent Vi has built a truly market-leading brand and global presence. We are impressed by both the team and the technology”, says Marcus Bäcklund, Irisity CEO.
Agent Vi has thousands of deployments in more than 90 countries, as well as partnership deals with security giants including Securitas. The total revenue 2020 was USD 6,1M, with EBITDA USD -0,4M and net profit USD 0,3M. The acquisition is expected to contribute with revenue exceeding USD 12M for the coming twelve months and is expected to contribute to positive cash flow on an annual basis in 2021.
“We are extremely proud of and excited about the prospects of the combined Irisity-Agent Vi future, and we look forward to our joint journey with expanded geographical coverage and stronger power of execution”, says Itsik Kattan, Agent Vi CEO.
The security industry is undergoing a significant technology-based transformation providing opportunities to reach new levels of efficiency and customer value. Irisity takes the lead in this digitalization by developing the best and most advanced video security solutions with agile algorithms for customers worldwide.
The transaction in brief:
The purchase price on cash- and debt-free basis amounts to USD 67,5M will be paid with USD 8M in cash and USD 59,5M in Irisity shares. Irisity intends to conduct a directed share issue to institutional investors with deviation from the shareholders’ pre-emption rights to partly finance the cash consideration and partly to strengthen the company’s working capital position subject to the approval from an extraordinary shareholders meeting. Issuance of the Consideration Shares will be resolved following an authorization from an extraordinary shareholders meeting.
The purchase price for Agent Vi’s all outstanding shares on a cash- and debt-free basis and under the assumption that the working capital at closing equals the normalized working capital amounts to USD 67,5M. The purchase price will be paid by issuance of the Consideration Shares and the remaining purchase price will be paid in cash.
The acquisition is subject to the Company’s board of directors’ resolution on the directed share issue being approved by the Extraordinary Shareholders Meeting and a resolution from the Extraordinary General Meeting authorizing the Board of Directors to resolve on the issuance of the Consideration Shares.