(Boursier.com) — beaconsmind AG announces an agreement to acquire a majority stake of 51% in FREDERIX Hotspot GmbH as part of a transformative and coherent extension of its business model as a B2B provider of point-of-sale solutions.
FREDERIX is a provider of enterprise WiFi solutions (FREDERIX Hotspot) as well as a developer of smart, cloud-based WLAN hotspot technologies (FREDERIX Cloud Wifi). The company offers products that assist customers in networking, controlling and monitoring WLAN networks.
beaconsmind will issue 155,500 shares at a price of 13 euros per share. The new shares are being issued at a premium of 19% to the price of beaconsmind’s closing share price on Friday on the XETRA market.
With the acquisition of the majority of the capital, beaconsmind will benefit from full cash flow integration and will consolidate FREDERIX’s accounts in full integration in the future. FREDERIX is a well-managed company with cash flow that has remained positive throughout the pandemic and a debt-free balance sheet.
On a pro forma basis, beaconsmind’s current annualized revenue will more than double through this acquisition, from a range of €2-2.5 million to approximately €5.5-6 million, and the company will accelerate its path to profitability, with a break-even point expected in mid-2023 and strong profitability expected thereafter.
The new management team foresees combined cost synergies of at least 0.3 million euros on top of FREDERIX’s current EBITDA of 0.5 million euros, and expects a significant improvement of this indicator by the after.
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