(Rælingen, Norway, December 18, 2020) StrongPoint ASA (“StrongPoint”, OSE: STRO)
has today entered into a definite agreement to divest the Cash Security business
to Cennox NV (“Cennox”). The transaction includes the Swedish company
StrongPoint Cash Security AB and its subsidiaries StrongPoint BVBA in Belgium,
StrongPoint Sarl in France and StrongPoint OOO in Russia. The transaction
follows StrongPoint’s 2025 growth strategy to focus on retail technology. The
completion of the transaction is subject to certain customary completion
conditions and is expected to occur either shortly before Christmas or in early
“We are now optimizing and streamlining our portfolio to enable us to focus on
the retail technology segment, in particular in-store technologies and ecommerce
solutions where we see long-term growth opportunities,” said Jacob Tveraabak,
CEO of StrongPoint.
“The diversity of our service offering gives Cennox the competitive edge when
engaging with customers. We believe our acquisition of the StrongPoint Cash
Security business will enable us to connect our customers to a level of service
which isn’t available anywhere else,” said Clive Nation, Group CEO of Cennox.
“The Cash Security business is quite different to StrongPoint’s core and so we
believed its business model would be better suited under the leadership of a
company that is taking a stronger overall position in the cash security
industry,” added Tveraabak.
The purchase price for the Cash Security business is EUR 7.3 million to be
settled with approximately EUR 2.6 million paid in cash at closing and the
remaining in an earn-out arrangement tied to Cennox’ sales of cash security
products in 2021 through 2023. In case of certain overperformance targets being
reached, StrongPoint will also be entitled to certain further bonus payments.
The transaction will result in a posted financial gain of approximately EUR 4.6
million and will be booked in the fourth quarter 2020.
The purchase price is final and agreed on the basis of the Cash Security group’s
accounts per 30 September 2020, and the business segment will no longer be part
of StrongPoint’s financial reporting from that date. StrongPoint will report the
Cash Security business as discontinued operations from and including the fourth
StrongPoint’s Cash Security business provides secure cash logistics and
employees around 60 people in offices in Sweden, Norway, Belgium, France and
Russia. The business was established in 1995 and was acquired by StrongPoint in
2008. Recent financial results related to the Cash Securities business is
included in StrongPoint’s third quarter 2020 report.
There will be an investor webcast on Friday 18th December at 12:00 CET, click here
Questions can be emailed to: Investor@Strongpoint.com up to the time of the webcast.