OSLO, NORWAY: Elop AS has received a cash consideration offer for the acquisition of 100 percent of the shares in its operating subsidiary Simplifai.

The offer values Simplifai at an enterprise value of NOK 140 million and will secure Elop the financial strength to accelerate commercialization of its technologies and further grow the company until cash positive operations, a statement noted.

“We believe this is an attractive offer that accurately reflects the underlying values in the company. As the development of Elop Technology has progressed Elop is now less dependent on Simplifai. Securing the value through a sale of Simplifai will greatly benefit Elop and its shareholders”, says Elop board member Kristian Lundkvist, who has represented Elop in the transaction, and continues;

“With this transaction Elop secures the financial strength to really accelerate our global growth plans, open up new markets quicker, especially the promising German market, and evaluate strategic options”.

The transaction will allow Elop to fully fund its capital needs until the company is cash positive from operations while still maintaining its close cooperation with Simplifai with respect to software development.

The offer has been put forward by a consortium consisting of the Simplifai founders and backed by a group of financial investors represented by Patrik Egeland. Chairman of the Board and CEO in Elop, Øivind Horpestad, is also part of the consortium, and has therefore recused himself from the Elop board of directors’ evaluation and decision process related to the potential transaction. The purchase price for the shares of Simplifai shall be based on an enterprise value, on a debt and cash-free basis, of NOK 140 million. NOK 50 million of the final purchase price shall constitute a seller’s credit from Elop to be settled by the Buyer 30 months from closing of the transaction.

“Simplifai has demonstrated that its artificial intelligence and process automation solutions have a large market potential. A dedicated and strong management team together with strong financial investors will ensure that Simplifai has the required resources to grow exponentially in the years to come”, says Patrik Egeland.

The transaction remains subjects to customary closing conditions, due diligence and final transaction documentation, and is expected to be concluded within June 2022.

Simplifai is Elop’s AI business unit. Simplifai operates as a stand-alone business where it develops a no-code automation platform using artificial intelligence to help clients across numerous industry sectors to grow efficiently. Simplifai’s Digital Employee solutions can automate labour intensive work process where natural language communication including email or documents are central. www.simplifai.ai