LONDON, UK: Journeo plc (AIM: JNEO), a leading provider of information systems and technical services to transport operators and local authorities, announced the acquisition of the entire issued share capital of MultiQ Denmark A/S for a total consideration of €2.5 million on a debt free cash free basis.
MultiQ Denmark is a leading full-service provider of Intelligent Transport Systems (ITS) with customers in Denmark, Sweden and Iceland.
The Acquisition will provide opportunities for cross-selling of products, technologies and software and strengthens Journeo’s presence in the Nordic market, where it already operates in Stockholm.
Based in Aarhus, Denmark, MultiQ is one of the market leaders in developing and supplying public information systems for bus travel, such as fleet management software and on-board passenger infotainment, indoor and outdoor real-time display systems.
Founded over 15 years ago, MultiQ has a reputation for high quality design and installation of travel information display systems. Its customers include Passenger Transport Authorities (“PTAs”) and local authorities Passenger Transport Operators (“PTOs”).
MultiQ was part of a larger group which was acquired by Vertiseit, a Swedish based retail technology company specialising in digital in-store media in May 2022. In January 2023 the retail digital media assets and a number of employees of MultiQ were transferred out to Dise, a Vertiseit subsidiary, leaving MultiQ as a purely ITS focussed business.
The cash consideration of €2.5m is being satisfied through the payment of €2.1m on completion of the Acquisition, with two deferred payments of €0.2m at 12 months and 24 months following completion, all funded from the Company’s existing cash resources.
The consideration for the shares is €1.7m after the repayment of an intercompany balance of €0.8m. The acquired net assets are €1.1m, with goodwill expected to be €0.6m. Management expects MultiQ’s revenue for the current year to 31 December 2023 will be approximately €3.3m, with an operating profit of €260k, representing an acquisition multiple of 2.3x.
Russ Singleton, Chief Executive of Journeo plc, commented: “The acquisition of MultiQ provides Journeo with an established, full-service provider of Intelligent Transport Systems in Denmark and further strengthens our expansion into the Nordic markets. MultiQ has a leading position and strong SaaS based sales approach with approximately 40% recurring revenue that will complement our existing offering and bring further scale to our cloud-based applications”.