The acquisition in short:
- Acquisition of the leading value added reseller of hardware and software in the Benelux region. Centralpoint had a revenue of approximately
SEK 7 billion and an EBITA of approximatelySEK 280 million in 2020[1]. -
Complementing Dustin's current operations in
the Netherlands , creating a market position similar to the one in the Nordics. Combining hardware and software sales to the SMB and LCP segment with strong service sales as a margin contributor. -
Dustin acquires Centralpoint for a total consideration of
EUR 425 million (corresponding to SEK 4,326 million[2]) on a cash and debt free basis (Enterprise value) fromRotla B.V . (indirectly). - The total consideration comprises 8,254,587 newly issued shares in Dustin and the remaining part in cash financed through increased credit facilities.
-
Dustin intends to, as part of the long-term financing of the acquisition, propose a rights issue of approximately
SEK 1,200 million expected to be carried out during the second half of 2021. - Closing of the acquisition is subject to customary closing conditions, including clearance from the Dutch competition authorities.
-
An extraordinary general meeting will be held to authorise the
Board of Dustin to resolve on the issue of the consideration shares and the rights issue (the "EGM"). The EGM will be held on18 May 2021 and the notice will be published later today. -
Dustin's two largest shareholders,
Axel Johnson AB andAMF Fonder , representing in aggregate 40 per cent of the shares, have undertaken to vote in favour of the authorisations at the EGM.Axel Johnson AB andRotla B.V . (indirectly) have undertaken to subscribe for their pro rata share in the rights issue, corresponding to 36 per cent of the rights issue, andAMF Fonder has expressed their intention to subscribe for its pro rata share in the rights issue.
-
With Centralpoint we become a leading IT-partner in the Benelux region, continuing to build on our strategy of combining hardware and software sales with an attractive service offering to offer complete IT solutions. We see great potential in building on Centralpoint's strong position within large corporate and public sales, combined with our current portfolio of offerings towards small and medium sized businesses and with that continuing to scale our online sales, says
Thomas Ekman , President and CEO of Dustin.
-
I'm proud of having led Centralpoint from its creation in 2017 and of the truly great company we have built. Through the hard work of our exceptional employees, we have solidified our position as the leading IT value added reseller in the Benelux region. In Dustin we have found a strong next owner with an ambition to further expand the offering to our customers and to accelerate growth in the Benelux region, organically and through acquisitions. The two companies complement each other perfectly and together we are ready to keep on building on our leading position. I'm excited to enter into the next phase of growth with Centralpoint, says
Luuk Slaats , CEO of Centralpoint.
Press and analyst teleconference +46 8 566 426 92 +44 33 330 092 71
+1 833 249 84 05 |
About Centralpoint
Centralpoint is the market leading IT value added reseller with main focus on hardware and software to the SMB and LCP segments in the Benelux region. The company has approximately 600 employees and presence in three locations in
Centralpoint had a revenue of approximately
Transaction rationale and financial impact
Dustin has since its inception in 1984 consolidated the Nordic IT services market. In 2018, the geographical expansion continued by entering
The acquisition has great strategic value and Dustin's position in the market will be further strengthened. The key attractions include:
- Strengthened market position
Combining Dustin's existing presence in the Benelux region with Centralpoint creates an IT powerhouse in the region with outstanding market positions in all customer segments; publicsector, large corporate and SMB customers. With critical mass in the market.The combined group will have a full offering including hardware, software, services and solutions to all customer segments and is positioned to enhance the local service offering and introduce additional value-added services in the market.
- Significant sales and efficiency synergies
Dustin expects sales and efficiency synergies in areas such as procurement, increased private label penetration, IT and technical platform, knowledge sharing and SMB sales. The acquisition is expected to generate annual synergies of approximately
- Base for future expansion
The acquisition creates a new home market for Dustin paving the way for continued expansion in the region organically and via bolt-on acquisitions.
The combined revenue the past 12-month period ("LTM") for Dustin and Centralpoint is approximately
The acquisition multiple corresponds to an EV/EBITA (adjusted) LTM multiple of approximately 15x excluding synergies and approximately 10x assuming full impact of synergies. Dustin estimates that the acquisition, including full effect from the cost synergies, would have had an EPS accretive effect of more than 50 per cent for the financial year 2019/20 on a proforma basis[4]. The acquisition will not have an impact on the financial targets.
Financing of the acquisition
Issue in kind and short-term financing
The acquisition will be financed through a combination of issue of new shares, cash and debt facilities. A new issue of 8,254,587 shares to the sellers as part of the purchase price (the "Issue in Kind") will be resolved by the board in connection with closing of the acquisition, subject to the EGM authorising the board to resolve on the Issue in Kind. The subscription price in the Issue in Kind will be
Dustin has secured bridge financing with
Rights issue and long-term financing
To cover longer-term financing of the acquisition, the
In addition, the Board will explore options regarding increased long-term debt financing in the form of increased bank loan and/or a bond issue (the "Debt Financing"). The Debt Financing process is expected to conclude during the second half of 2021.
Dustin has a financial target to maintain a net debt of 2-3x adjusted EBITDA LTM. Immediately following the closing of the acquisition and the Issue in Kind, Dustin expects its proforma net debt/EBITDA LTM to be approximately 4.5x. Following the intended Rights Issue, Dustin expects its proforma net debt/EBITDA LTM to be approximately 3.3x.
Extraordinary General Meeting
The EGM to resolve upon the authorisations for the Board to resolve upon the Issue in Kind and the Rights Issue will be held on
Dustin's two largest shareholders,
Regulatory approval
Closing of the acquisition is subject to compliance with works council proceedings and customary closing conditions, including merger control clearance from the Dutch competition authority.
Advisors
Press and analyst teleconferenceToday at
Call-in:
+46 8 566 426 92
+44 33 330 092 71
+1 833 249 84 05
The presentation can also be followed live via webcast here
Contact person:
Eva Ernfors, Head of Communication
eva.ernfors@dustin.se, +46 70 258 62 94
This information is information that
About Dustin
Dustin is a leading online IT partner with operations in the Nordics and
We offer approximately 255,000 products with related services to companies, the public sector and private individuals. The main focus is on SMEs. Sales for the financial year 2019/20 amounted to approximately
[1] Applying EUR/SEK exchange rate of 10.1778, the exchange rate as of
[2] Applying EUR/SEK exchange rate of 10.1778, the exchange rate as of
[3] Applying EUR/SEK exchange rate of 10.1778, the exchange rate as of
[4] Assuming financed by a rights issue of approximately
[5] Determined as the volume weighted average price of Dustin's share during the ten latest trading days.
https://news.cision.com/dustin-group-ab/r/dustin-takes-a-leading-position-in-the-benelux-region-by-acquiring-centralpoint,c3324075
https://mb.cision.com/Main/11857/3324075/1400468.pdf
(c) 2021 Cision. All rights reserved., source