Admicom (ADMCM) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Bauhub OÜ for EUR 6 million aims to expand and unify the project management suite, accelerate internationalization, and enhance cross and upsell opportunities in the Baltics and Nordics.

• Bauhub's platform, with 300 customers and 32,000 users, fills a significant gap in project data and collaboration tools, strengthening the construction value chain.

• The deal supports a two-suite strategy: Ultima ERP for Finland and a modular project management suite, now unified by Bauhub, for international markets.

• Expands market presence to the Baltics, increases international ARR to about 5% of total, and marks the first step outside Finland.

• Bauhub is seen as a cornerstone for building a comprehensive data platform with AI, aiming to boost customer productivity by 25%.

Financial terms and conditions

• Enterprise value of EUR 6 million, paid fully in cash at closing, expected December 2024, with a multiple of approximately four times ARR.

• Bauhub's ARR at end of October 2024 was EUR 1.6 million; 2024 revenue estimated at EUR 1.3–1.4 million, adjusted EBITDA at EUR 0.3 million.

• Three operative founders will reinvest EUR 0.9 million of the purchase price into shares via directed issue, with a 36-month lock-up.

• Final purchase price adjusted for net debt and working capital; financed from cash reserves.

• Annual goodwill amortization estimated at EUR 600,000–1 million.

Synergies and expected cost savings

• Cross-selling and bundling opportunities identified for at least 1,000 of over 3,000 existing customers, increasing total addressable market by an estimated EUR 20 million.

• Integration expected to create a unified user experience and enable new product bundles, including AI enhancements.

• R&D resources to be reallocated internally, reducing external software development revenue by about EUR 0.5 million in 2025.

• Overlaps in documentation tools are seen as opportunities for better product positioning and resource allocation.