Vertiseit (VERT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of a German digital signage pioneer with 30,000 licenses and SEK 20 million ARR strengthens presence in Germany and aligns with a partner-first sales strategy.

• Adds significant customers with high growth potential, notably Deutsche Telekom and McDonald's Germany, enhancing the group's European footprint and IXM leadership.

• Strengthens the group’s position in the McDonald's ecosystem across Europe, especially in Germany.

• MDT's integration with Grassfish aims to accelerate development of the next-generation AI-enabled IXM Aqua platform.

• Shared commitment to partner-led growth and innovation aligns with long-term strategy.

Financial terms and conditions

• Valuation set at approximately SEK 87 million on a debt and cash-free basis, paid in full at closing, representing an ARR multiple of 4.3.

• Financed through a combination of internal cash, generated cash, and a new credit facility with Nordea.

• Adds about SEK 20 million in Annual Recurring Revenue (ARR).

• mdt’s revenue is primarily SaaS (80%), with the remainder split between consulting and proprietary media player sales.

• Average growth rate for mdt has been 5–10% in recent years, with a 35% EBITDA margin, aligning with group targets.

Synergies and expected cost savings

• Full integration into Grassfish [DACH] expected to deliver operational efficiencies and shared development resources.

• mdt’s development team to contribute to the next generation Grassfish IXM Aqua platform, leveraging strong concepts from mdt’s software stack.

• Combined scale and resources expected to accelerate development and drive innovation in the Digital In-store industry.

• No significant customer overlap except for McDonald's, where combined efforts are expected to yield greater value.

• Partner-led growth strategy to empower partners with greater innovation and reach.