Eurowag to acquire WebEye, a leading Fleet Management Solution provider, and updates on current trading
WebEye has an established presence in Europe with a total portfolio of more than 57,000 connected trucks. It is led by Pál Németh, who has been instrumental in the growth of the company and will remain in the role to oversee the integration in Eurowag.
Eurowag's acquisition of WebEye will expand the Group's customer base and WebEye's customers will gain access to Eurowag's unrivalled range of integrated end-to-end payment and mobility solutions leading to incremental revenue opportunities. Furthermore, data from the connected trucks will provide insights and enable the continual development of new and improved solutions to address customers' needs. The transaction will be funded from cash on balance sheet and is expected to be immediately earnings accretive.
Upon closing, Eurowag will pay a cash consideration of EUR 38.5 million taking into account adjustments for net debt and normalised working capital. Eurowag will also pay a deferred settlement component within three years from closing, a part of which is subject to the fulfilment of certain KPIs. The maximum consideration, including the deferred settlement component, is capped at EUR 55.9 million.
WebEye generated revenues of EUR 16.5 million and normalised adjusted EBITDA of EUR 4.3 million in the year ended 31 December 2020. Revenues for the first six months of 2021 were EUR 8.3 million, while normalised adjusted EBITDA accelerated to EUR 2.6 million thanks to increased profitability of the business.
Closing of the deal is anticipated in Q1 2022, subject to customary completion conditions including clearance from the Hungarian Competition Authority, Romanian Competition Council and Ministry of Innovation and Technology in Hungary.
Current trading
Trading continues to be consistent with management's expectations and the Group expects to deliver FY21 revenue in line with medium-term guidance. Key performance indicators, such as the number of payment solutions active customers, trucks, and transactions have continued to grow in line with expected trends.
Martin Vohánka, CEO and Founder of Eurowag, said:
"I am pleased to announce the acquisition of WebEye in line with the strategy we set out at the time of our recent IPO and further expanding our payments and mobility platform. With integrated services we aim to reduce the impact of our industry on the environment. The solutions allow to reduce the ratio of trips with empty load and improve road safety, as the fleet operators can have a thorough overview of the conditions of their vehicles."
Pál Németh, the CEO of WebEye, said:
"Joining forces with Eurowag opens doors to new markets and offers our customers access to a wide range of services and solutions for their businesses to thrive. Eurowag's integrated digital platform helps transport operators make their business more efficient and more profitable, while making the lives of truck drivers easier. I am excited to join the Eurowag team and help achieve its vision to democratize the on-road mobility industry through a technological revolution."
The acquisition constitutes a class 2 transaction, and this announcement has been made pursuant of Chapter 10 of the UK Financial Conduct Authority's Listing Rules.
The person responsible for the release of this announcement on behalf of Eurowag is Tomáš Novotný (Head of Investor Relations).
ENQUIRIES
Eurowag
Tomáš Novotný (Head of Investor Relations)
investors@eurowag.com
Michal Malysa (Head of Group Communications)
michal.malysa@eurowag.com
+420 775 70 80 86
About Eurowag
Eurowag was founded in 1995 and is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service.
About WebEye
WebEye was established in 2001 with focus on CRT customers in Hungary. Today it is the leader in CRT Fleet Management Solution in Hungary and Romania, with customers in Bulgaria, Croatia, Czech Republic, Germany, Poland, Portugal, Slovakia, and Slovenia. WebEye generated a profit before tax of EUR 2.2 million in the year ended 31 December 2020. Its gross assets were EUR 9.7 million as at 31 December 2020 based on unaudited consolidated management accounts prepared under Hungarian GAAP.