Gaztransport & Technigaz (GTT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Danelec secures global leadership in vessel performance management and strengthens the digital division, aligning with the strategic roadmap and expanding the installed base to about 17,000 vessels.

• Complements existing offerings from Ascenz Marorka and VPS, unlocking significant synergy potential and enhancing exposure to a shared customer base.

• Covers the full spectrum from noon reports to high-frequency data solutions, enhancing technology capabilities in regulated, recurring revenue markets.

• Strengthens position in the highly regulated, safety-critical VDR market, supporting steady growth and recurring revenues.

• Reinforces leadership in the high-growth digital maritime market and supports decarbonisation efforts.

Financial terms and conditions

• Acquisition valued at €194 million for 100% of Danelec, representing about 15x estimated 2024/2025 EBITDA before synergies.

• Danelec reported 2023/2024 revenue of DKK 330 million (about €44 million) with an adjusted EBITDA margin of 25%.

• Danelec has net debt of approximately €30 million as of June 2024.

• The acquisition is expected to be accretive to earnings per share from the first year.

• Danelec employs 168 people and has a network of over 700 technicians.

Synergies and expected cost savings

• Significant synergy potential from combining complementary offerings, with cross-sell and up-sell opportunities across a large, sticky customer base.

• Revenue synergies are expected to dominate due to minimal overlap in product offerings and customer base.

• Cross-sale synergies anticipated to begin in 2026.

• Bundling solutions and upselling to existing customers expected to drive growth.