FormPipe Software (FPIP) Investor Update summary

Divestment announcement and strategic rationale

• Board has decided to divest the Public Sector business area to STG Partners for up to SEK 850 million, enabling a focused strategy on Lasernet and aiming to maximize long-term shareholder value.

• Strong interest from professional bidders led to the transaction, with proceeds to be partially distributed to shareholders and some reinvested in Lasernet.

• Board and management view the transaction as a natural step to maximize value for all stakeholders.

Transaction details and financial impact

• Total consideration is up to SEK 850 million: SEK 775 million in cash at closing, SEK 50 million loan note due 2029 at 4.25% interest, and SEK 25 million contingent on STG's investment return.

• Sale includes all assets of Formpipe Public, transferred to a new subsidiary prior to completion.

• Closing is subject to transferring 90% of contracted revenue from Swedish public customers, regulatory and EGM approvals, with EGM scheduled around 17 September 2025 and closing expected in Q4 2025.

• Major shareholders representing 20% of votes have entered voting undertakings to support the transaction.

• Board intends to propose a substantial distribution of proceeds to shareholders, while retaining funds for Lasernet reinvestment.

Financials of divested and remaining business

• Public business (including BG Link) has 2024 ARR of SEK 239 million (7% growth), revenue of SEK 306 million, and adjusted EBITDA of SEK 93 million.

• Adjusted cash EBITDA for Public is SEK 46 million (15% margin); capitalized development is SEK 41 million.

• Remaining Lasernet business has 2024 ARR of SEK 220 million (21% growth), revenue of SEK 223 million (11% growth), and adjusted EBITDA of SEK 37 million.

• Lasernet achieved an adjusted EBITDA of SEK 93 million and a 41% cash EBITDA margin in 2024.

• Lasernet's adjusted cash EBITDA is SEK 22 million (10% margin); capitalized development is SEK 14 million.