OPUS ACQUIRES U.K. BASED AUTOLOGIC DIAGNOSTICS
Opus Group AB (publ) has acquired 100 percent of the shares in Autologic Diagnostics (Holdings) Ltd, a world leader in advanced aftermarket automotive diagnostics. The purchase price is GBP 8 million (approximately SEK 89 million) on a cash and debt free basis.
- Opus Group AB (publ) (Opus), has signed a share purchase agreement and closed the acquisition of Autologic Diagnostics (Holdings) Ltd., 100 percent owner of Autologic Diagnostics Ltd. (Autologic) for a purchase price of GBP 9.3 million (approximately SEK 104 million). The acquisition includes a cash balance of approximately GBP 1.3 (approximately SEK 15 million). Hence, the acquired business excluding cash is valued at approximately GBP 8 million (approximately SEK 89 million).
- After the acquisition the company will continue to operate as a stand-alone legal entity.
- Autologic is a world leader in advanced aftermarket automotive diagnostics.
- In 2016, Autologic had revenues of approximately GBP 16.5 million (approximately SEK 184 million) with EBITDA (adjusted for non-recurring items) of GBP 2.6 million (approximately SEK 29 million).
- The transaction, at GBP 8 million (approximately SEK 89 million) is financed through existing cash of Opus. Auto-logic will be consolidated effective June 16, 2017. Due to restructuring costs, Autologic´s contribution to Opus´ net profit in 2017 is expected to be negligible.
“We are excited about the acquisition of Autologic due to its status as a world leader in advanced automotive diagnostics. We see a great fit between our existing subsidiary, Drew Technologies (Drew Tech), and Autologic, such as Autologic’s leading diagnostic products and services and its call center of expert automotive mechanics providing automotive diagnostic assistance throughout Europe, the U.S. and Australia. Autologic’s presence in Europe and Australia will help Drew Tech expand its offerings well beyond the U.S. market, while Drew Technologies helps to round out and fortify Autologic´s offerings in their established markets.” said Lothar Geilen, CEO of Opus. “I want to express a very warm welcome to the over 130 employees at Autologic. We are looking forward to having the Autologic employees become a part of the Opus family”, Geilen continued.
Background and reasons for the Acquisition
Autologic, founded in 1999 and headquartered in Oxford, Great Britain, with subsidiaries in the U.S., Germany and Australia, has developed into a world leader in advanced aftermarket automotive diagnostics. The company provides market leading software, hardware and professional support services enabling the global automotive aftermarket to diagnose and fix passenger vehicles.
The combined entities will serve an existing customer base of nearly 40,000 automotive repair shops by providing market leading vehicle diagnostics and vehicle communication offerings to address the trend of increased vehicle computerization.
Across the world, legislation is being introduced that forces car producers to allow non-franchised, independent garages the ability to diagnose and repair all vehicles. This is being seen in the U.S. (Right to Repair Act), Asia, Europe (Euro 5 legislation) and Australia. This trend creates interesting growth opportunities for companies in the automotive diagnostics and vehicle communications sector, such as Autologic and Drew Tech.
Autologic has an established presence in the key geographic territories for the automotive aftermarket through operations in Europe, the U.S. and Australia. Autologic has long standing relationships with the key automotive OEM’s and a customer base of 6,000 accounts located in 120 countries around the world, primarily comprising of specialist workshops.
Opus has acquired 100 percent of the shares in Autologic Diagnostics (Holdings) Ltd. The purchase price amounts to GBP 9.3 million (approximately SEK 104 million). Autologic has a cash balance of approximately GBP 1.3 million (approximately 15 MSEK). The company will be acquired on a cash and debt free basis. The purchase price excluding cash amounts to approximately GBP 8 million (approximately SEK 89 million).The Acquisition in brief
Autologic financials in brief
Autologic had revenues of approximately GBP 16.5 million (approximately SEK 184 million) in 2016 with an operating profit before interest, taxes, depreciation and amortization (EBITDA) (adjusted for non-recurring items) of approximately GBP 2.6 million (approximately SEK 29 million).
Financing of the Acquisition
The transaction, at GBP 8 million (approximately SEK 89 million) is financed through existing cash of Opus.
Mölndal, June 16, 2017
Opus Group AB (publ)
For additional information, please contact:
Lothar Geilen, CEO
Phone: +46 31 748 34 00
Peter Stenström, Investor Relations
Phone: +46 765 25 84 93
About Opus Group
Opus is a technology driven growth company in the vehicle inspection and vehicle services markets. The company has a strong focus on customer service and innovative technology within emission and safety testing and vehicle services. The Group had approximately SEK 1.7 billion in revenues in 2016 with strong operating cash flow and good operating profitability. Opus’ plan is to double its revenues to reach USD 400 million in revenues and USD 100 million in EBITDA by 2021. The main growth is estimated to come from the expansion of the vehicle communication and services business and the international expansion of the vehicle inspection business with a primary focus on the Latin American and Asian markets. With close to 1,800 employees, Opus is headquartered in the Gothenburg region of Sweden. Opus has 26 regional offices of which 20 are located in the United States and the others in Stockholm, Peru, Chile, Argentina, Mexico and Pakistan. Opus has production facilities in the U.S. in Hartford, Ann Arbor and Tucson. The Opus share is listed on Nasdaq Stockholm.
This information is information that Opus Group AB (publ) is obliged to make public pursuant to the EU Market Abuse
Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16:30 CET on June 16, 2017.