A visitor management system will broaden Precises’ offer
Precise Biometrics acquire EastCoast Solutions for an enterprise value of SEK 80m. EastCoast Solutions offers a visitor management system that is used by over 600 clients world-wide where some of the customers are EY, Bosch and SSAB. EastCoast Solutions had LTM (as of 30 September ’21) revenues of approximately SEK 16.8m, of which 76% is recurring revenues and an EBITDA margin of 17.4%. The purchase price corresponds to an EV/S multiple of 4.8x and EV/EBITDA of 27.4x. EastCoast Solutions adds 17.0% and 26.2% to consensus sales and EBITDA 2022e. The transaction is expected to close today (30 November) where SEK 25m, will be paid upfront (of which SEK 7m in shares) and last night Precise completed a directed issue of SEK 23m. Moreover, SEK 25m and 30m will be paid after one and two years, respectively.
Overall, to acquire a profitable business is very positive for Precise, especially for the Digital Identity segment in which the company has invested in the last years. The company may have to issue new stocks in the future to pay for the acquisition.
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