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Alcadon: UK acquisition of NWC adds growth and value - SEB

Alcadon Group has announced the acquisition of NWC - a leading independent distributor of network equipment in the premium segment of the UK market. EV paid (excluding a SEK 123m earn-out) equates to SEK 387m, of which SEK 71m will be paid in new shares. Based on our initial calculations, this implies a value accretive acquisition (2023E: ROCE less WACC of about 6pp). Our current mid-point of SEK 100 is under review. We estimate NCW could add about 40% to group EBIT in 2023.

Alcadon Group has announced the acquisition of NWC - a leading independent distributor of network equipment in the premium segment of the UK market. EV paid (excluding a SEK 123m earn-out) equates to SEK 387m, of which SEK 71m will be paid in new shares. Based on our initial calculations, this implies a value accretive acquisition (2023E: ROCE less WACC of about 6pp). Our current mid-point of SEK 100 is under review. We estimate NCW could add about 40% to group EBIT in 2023.
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