Hi everyone, welcome to this investor presentation from Vertiseit's headquarters in Varberg. Today is Monday, January 10, and we will elaborate on the public offer that was published today to the shareholders in MultiQ. My name is Jonas Lagerqvist. I'm the CFO of Vertiseit, and with me here is Johan Lind, CEO of Vertiseit. Together, we will walk you through today's agenda. We will give you a brief background and introduction to MultiQ. We will talk about the motives and the effects that it has on the Vertiseit group and the joint group in the future.
We will elaborate on the actual offer and give you a brief description of the preliminary time plan going forward. Please, Johan.
Thank you so much. My name is Johan Lind, and for those of you that are new to Vertiseit, we are a retail tech company. We offer platforms and services to enhance the customer experience in store. We are actually the number one platform company within digital in-store in Europe with market brands such as Grassfish, Dise within our group. We have 130 employees, with a local presence in the U.K., Austria, Germany, and Sweden. We always keep track of how we grow our installed base and our annual recurring revenue. It was SEK 66 million as of the Q3 reports.
Our track record is that we have grown our installed base and ARR every quarter in, I think it's 39 quarters in a row now, Jonas. We hope for the best for a 10-year streak. Actually in the autumn, we also had a capital markets day. I hope some of you joined into that. We put new long-term goals in place to reach 200 million ARR by the end of 2024, and also aim to be the number one global player within digital in-store platform space by 2023, 2026, excuse me. We also rearranged the group because we are aware of to be able in this space, to grow in that pace that's required, we need to ramp up our acquisition agenda.
The group structure is now that Vertiseit is a pure holding company. The operational business in Vertiseit goes into Grassfish, and Dise operates as is, as a pure software offering through full service provider partners, globally. Of course, here is a perfect environment for MultiQ to coexist with Grassfish and Dise, where they together have a very, very strong value proposition to the market, and they are strong actually in different verticals.
If you look back at the acquisitions that we have performed and you look at the net revenue retention from the point of acquisition to where we are today, the average outcome is that we grow the acquired ARR with 50%. So on average, we are above 50% increase on acquired ARR. Based on the 8 acquisitions that is carried out, we have never, like, had a negative—it has never shown a negative impact on the ARR. Always above 100% from point of acquisition to now. Okay, now we go to MultiQ in short. It's was founded 1988. It was actually a pioneer within flat panel displays back in the 1990s. It has transformed and pivoted into a digital signage provider with a really strong software offering.
This has been, like, step by step. A big part of that was the merger or actually the acquisition of PubliQ in 2013. That acquisition also made Lars-Göran Pålsson the largest shareholder of the company, and he have transformed the company into what it is today, and it's a leading Nordic player within the digital signage space. He also performed an acquisition of Mermaid, that was a listed digital signage company in Denmark. Altogether, it has a really good footprint in the Nordics, but also international partners, which I will tell you a little bit more about.
MultiQ have approximately 30,000 active players out there in the field to support the customer's operation and an ARR that exceeds 50 million SEK as of today. If we take a closer look to the customer segments where they operate, retail is where we are really familiar with. In Vertiseit, it's our core expertise to really enhance the customer experience in store, to bridge the gap between online and offline, and making it work together. That's what we come from. They are also good in public transport, in gaming, corporate communication, and retail banking. We can just walk through and just give you a little bit of introduction.
Retail, we know, and I think here we can, with a combined offering, we can grow an existing base in retail definitely. PubliQ is a very strong niche offering where you have, like, GPS-triggered communication based on where you are, where all, like, transports are online, and you can have accurate communication with the people going by public transport. They are strong in the Nordics with a lot of operators in the market as their customers. If you look at the gaming, it's a sector where MultiQ has been strong for so many years. Regulated gaming companies work with MultiQ. Good examples is Swedish Svenska Spel, Norsk Tipping from Norway, Western Canada Lottery Corporation and Atlantic Lottery Corporation.
Here is actually, like, the combined offering with the hardware piece, the hardware component in the delivery, a great software that meets the higher security standards, that have support for the latest touch application, HTML-based, with the performance to roll it out in, like, tens of thousands of deployments. Corporate communication is also a sector where it's strong. We have a really nice customer base there. Retail banking, of course, in the Nordics, we have, like, Swedbank and Handelsbanken, but also in the DACH region and Switzerland, we have UBS and Credit Suisse, for example. The operation is also a pretty good match to how we operate the business now, where they have a big portion already on partners, as we like.
They have Telia as their partner in Scandinavia. They have JLS that was acquired by Swisscom in Switzerland. They have Scientific Games with the head office in Las Vegas in the gaming industry. They also have niche partners, for example, in queue systems like Nemo-Q. If we look at, like, what are our core, like, motives for this public offer, and I think you already, like, figured it out pretty well. It's to strengthen the position as the number one Digital In-store platform company in Europe. It's of course very important. Based on that, we get, like, significant synergies and economies of scale. It broaden our, like, customer base with new strong verticals. It also adds really important and great partners to our partner network.
Overall, like, broaden the platform with niche applications in verticals that strengthens both the offer, and we also strengthen the organization as a whole, of course. If you look at effects on the group, we extend the partner network. We strengthen the organization with 66 people, employees more. We strengthen the offering in the segments. Also, a very well-known Swedish investor, Grenspecialisten, is the second-largest shareholder. Will take the share consideration in stocks from Vertiseit. Really happy to have them on board. It's actually a company that is owned by Martin Gren, the founder of Axis Communications. They have worked with partner strategy, worked in the field of SaaS as well.
We are really happy to have them on board going forward here. If you look at the financial effects, pro forma, we will increase the ARR with 76%, reaching SEK 160 million in ARR. The net sales pro forma is SEK 251 million, if you just stack them on top of each other. SEK 17.7 million in EBITDA. EBITDA margin of 7.1%. Of course, this is below what we perform today in the group. The synergies here are big. I think within like 12 months we will be able to have the whole group on the level where we are today.
Yes, and the
The public offer that was communicated today via press release this morning, it contained three different alternatives for consideration for the current MultiQ owners. There's one option that is approximately 25% Vertiseit shares and 75% cash, which amounts today is 12,500 SEK and 100 B shares in Vertiseit for every full block of 10,000 shares in MultiQ. There is also a full share consideration which consists of 100% shares in Vertiseit, which will give every holder of 10,000 shares in MultiQ 413 shares in Vertiseit.
The third option is a cash consideration, which is SEK 1.6 for every MultiQ share. Given this, we have also signed irrevocable undertakings from three of the largest shareholders in MultiQ, which is Lars-Göran Pålsson and Grenspecialisten that Johan just told us about, and Lars-Göran Mebius, who together holds 46.6% of the shares and the votes in MultiQ.
These three have irrevocable undertakings to accept the offer on this level, which means that Lars-Göran Pålsson and Lars-Göran Mebius will accept consideration alternative one, and Grenspecialisten will go for the second option, taking 100% of its consideration in Vertiseit shares. Of course, this means a premium for current MultiQ owners and based on the volume-weighted average price for MultiQ shares, given the last 30 trading days, ended on the seventh of January.
The premium amounted to between 68% and 106%, based on Vertiseit's closing price on the seventh, which was the last day before the offer was announced. Of course, the spread in between these consideration alternatives come from the fact that there are two moving targets here, both the MultiQ share price and the Vertiseit share price, which will also be subject to movements during the process going forward. Yeah. There is a preliminary timetable that also may be subject to change.
Within two weeks, Vertiseit will hold an extraordinary general meeting where the shareholders will decide on the possibility of issuing the new shares needed for the acquisition. Approximately around the fifth of April, the offering documentation and the prospectus will be published and that will be the start of the three-week acceptance period, where Vertiseit will strive to reach 90% ownership of current MultiQ shares.
Around the second of May, we will publish the outcome of the offer and, subsequently, around week 19, the consideration will start to be paid out. When Vertiseit reaches 90% ownership of the shares, we will initiate the delisting process and then we will also start the process of collecting, like, the rest of the shares up to 100%.
Yes. After that, of course, start realizing the synergies between the companies. Hopefully we can enter the company in May. Yeah.
Yes, in May. For a full description of the offer and all the attached terms, please refer to the press release. We will have also published the full information on our investor relations website, corporate.vertiseit.se, where we will be publishing all the relevant documents during this process. Thank you all for listening and do not hesitate to get back to me, Jonas Lagerqvist, or to Johan Lind with any questions you may have. Have a good day.
Thank you so much for listening.