Vertiseit: Divesting MultiQ Denmark
Research Update
2023-09-21
06:45
Yesterday, Vertiseit announced the divestment of its transportation business. We positively view the anticipated divestment, strengthening Vertiseit’s focus on In-store Experience Management and improving Vertiseit’s cash position.
Fredrik Nilsson
Yesterday, Vertiseit announced the divestment of its transportation business (MultiQ Denmark) to Journeo (listed in the UK). Vertiseit has been looking for a new home for the subsidiary since the acquisition of MultiQ, and we are encouraged to see a deal taking place. Considering that Vertiseit expected a price of SEK10-20m in the Q1 2023 report, the enterprise value of EUR2.3m is higher than we anticipated and constitutes a welcomed strengthening of Vertiseit’s financial position. In addition, Journeo will start using Dise as its software for infotainment solutions.
The purchase price is paid 70% upfront, 15% after 12 months, and another 15% after 24 months. However, the deal will strengthen Vertiseit’s cash position by EUR2.3m from the day of closing (due to inventory). The remaining two payments will add additional liquidity of EUR 0.5 million to the company.
Through this divestment, Vertiseit will lose SEK50m in sales annually, which is about SEK16m in SaaS revenue, while the rest is Systems. However, Vertiseit’s ARR will remain unaffected, as the SaaS revenue generated from MulitQ has not been included in the ARR calculations since the acquisition of the MultiQ group. However, for calculation reasons (to align the ARR and SaaS revenue), we have included MultiQ Denmark in our ARR, which we now remove for all historical data and estimates. The sale of MultiQ Denmark is expected to have a limited impact on Vertiseit’s EBITDA.
Overall, we positively view the divestment, strengthening Vertiseit’s focus on In-store Experience Management and improving Vertiseit’s cash position. We leave our Base Case unchanged at SEK39.
SEKm | 2022 | 2023e | 2024e | 2025e | 2026e |
Revenues | 314.7 | 304.0 | 314.6 | 344.7 | 380.1 |
Revenue Growth | 147% | -3.4% | 3.5% | 9.6% | 10.3% |
EBIT | 13.6 | 18.5 | 43.7 | 59.9 | 70.3 |
EBIT Margin | 4.3% | 6.1% | 13.9% | 17.4% | 18.5% |
EV/Revenue | 2.4 | 2.1 | 2.0 | 1.7 | 1.5 |
EV/EBIT | 54.5 | 34.9 | 14.2 | 10.0 | 8.1 |
ARR | 138 | 163 | 190 | 219 | 251 |
ARR Growth | 87.9% | 18.6% | 16.5% | 15.2% | 14.6% |
EBITDA - CAPEX | 10.1 | 16.1 | 42.3 | 56.5 | 66.6 |
EBITDA - CAPEX Margin | 3.2% | 5.3% | 13.5% | 16.4% | 17.5% |
EV/ARR | 5.4 | 3.9 | 3.3 | 2.7 | 2.3 |
EV/EBITDA - CAPEX | 73.1 | 39.9 | 14.7 | 10.6 | 8.5 |
Net Debt | 129.9 | 114.5 | 91.7 | 67.8 | 36.2 |
Disclosures and disclaimers