Mips (MIPS) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition strengthens leadership in helmet safety and expands into adjacent protection areas, supporting two out of three strategic pillars and leveraging both brands' reputations and technology-driven approaches.

• Both companies share a vision to make active lives safer, with strong cultural and innovation alignment and market leadership in their niches.

• Koroyd’s technology is highly complementary, offering energy-absorbing solutions for helmets, body protection, and gloves, enabling a broader product portfolio.

• The deal opens new channels and markets, with both brands continuing to operate independently under their current leadership.

• Anticipated synergies in product development and portfolio expansion, with both teams leveraging strong R&D capabilities.

Financial terms and conditions

• Purchase price is EUR 40 million on a cash and debt-free basis, with an additional earn-out of up to EUR 25 million, totaling a potential multiple of 13x adjusted EBITDA for the twelve months ending September 30, 2025.

• Valuation corresponds to 8x and 13x adjusted EBITDA, depending on earn-out achievement.

• Transaction financed through existing cash and a credit facility.

• Completion is conditional on entering a financing agreement and other customary or local approval procedures, expected in December 2025.

• Expected to contribute positively to earnings per share, EBIT, and sales growth both short and long term.

Synergies and expected cost savings

• Key synergies anticipated in joint product development, marketing, and portfolio expansion, enabling more integrated helmet and protection systems.

• Both companies have strong R&D and testing capabilities, supporting innovation and efficiency.

• No cost savings assumed in the business case; focus is on growth and innovation rather than cost reduction.

• Expanded offering in advanced protection solutions for consumers and professional users.