Strax currently has a debt of EUR 37 million, and following the transaction, it will be left with EUR 12 million in debt. While the transaction will reduce Strax's debt burden in absolute terms, it may not be sufficient to address its financial challenges entirely. After the divestment, we project an EBITDA of EUR 0.9 million for 2024, which would result in a Net Debt to EBITDA ratio of 12x. This ratio remains quite high, indicating that Strax may still face significant financial leverage.

We are surprised that Strax is selling Urbanista, but we understand that management was more or less forced to address the debt situation.

LTM revenue from Accessories and Audio was EUR21.6m. Audio (Urbanista and Planet Buddies) is 52.7% of revenue and we estimate Urbanistas revenue is approxetimately 95% of Audio, and rest stems from Planet Buddies. We therefor cut our revenue estimation with c54% 2024E and onwards.