Thursday, 22 March 2018

CLX Communications AB (publ) strengthens its Nordic position by acquiring Unwire, a Danish cloud communications provider

Stockholm, Sweden - CLX Communications AB (publ.) - XSTO: CLX

CLX Communications AB (publ.) ("CLX") - a leading global CPaaS (Communications Platform as a Service) provider, has entered into a definitive agreement to acquire the Danish company Unwire Communication ApS ("Unwire Communication"). Unwire Payments & Mobility ApS, offering payment and mobility solutions, will not be part of the acquisition.

"Nordic enterprises are at the forefront of digitalization and are leaders at utilizing cloud communications to engage with their customers. The acquisition of Unwire Communication further strengthens our market position in the Nordic countries and positions CLX as a leading provider of cloud communications services and solutions to the Nordic financial services sector", said Johan Hedberg, President and CEO of CLX Communications.

CLX has committed to acquire Unwire Communication including customer contracts, employees, its cloud communication platform and associated intellectual property. Unwire Communication includes an attractive customer base of more than 300 direct enterprise customer relationships that will strengthen CLX's position in the Nordic market. In particular, Unwire Communication has a leading market position in the Nordic financial services sector, underpinned by a high level of technical integration, and a fully managed service with many customers.

Unwire Communication has a considerable number of Tier 1-connections with mobile network operators, primarily in the Nordic and Baltic countries, that will add to CLX's existing operator relationships. The acquisition, therefore, strengthens CLX's global Tier-1 Super NetworkTM which can be leveraged across the entire global enterprise customer base to optimize quality and further improve CLX's cost leadership position.

The acquisition is in line with CLX' strategy to take an active part in the consolidation of the European enterprise-oriented cloud communications market. Unwire Communication will run as a separate, CLX branded company for the time being and any decision to technically integrate its platform will be taken only once the integration projects already underway have been completed.

CLX is acquiring Unwire Communication for a cash consideration of DKK 148 million on a cash and debt-free basis. The purchase consideration is equivalent to 5.9 x EV/Adjusted EBITDA (2017). CLX intends to use a portion of its existing cash on hand and available credit facility capacity to finance the acquisition. The closing of the transaction will take place on March 27, 2018.

Handelsbanken Capital Markets is serving as CLX's financial advisor for the transaction.