Mildef Group (MILDEF) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition accelerates expansion in Central and DACH Europe, positioning as a leading European defense IT provider and leveraging increased defense spending and digitalization trends.

• Access to key sales channels, framework agreements, and long-term customer relationships in the DACH region and Central Europe.

• Strong cultural fit and experienced management team at Roda support integration.

• The deal is transformative, nearly doubling revenue and significantly increasing employee count.

• Opportunity for cross-selling MilDef’s higher-margin products through Roda’s established channels and to global platform manufacturers.

Financial terms and conditions

• Purchase price is EUR 70 million in cash, up to EUR 4 million earn-out, and approximately 1.4 million newly issued shares, on a cash and debt-free basis.

• Implied EV/EBITDA multiple of approximately 8x based on FY2023 EBITDA.

• Transaction expected to be EPS accretive shortly after closing, adjusted for PPA amortization.

• Funded by a new EUR 45 million term loan and a directed rights issue of up to SEK 500 million.

• Net debt/EBITDA expected to remain below 2.5x post-acquisition.

Synergies and expected cost savings

• Main synergies expected from cross-selling and leveraging Roda’s sales network for MilDef’s products.

• Procurement synergies and improved purchasing terms anticipated, to be further evaluated post-transaction.

• Cost synergies are expected to be minor; focus is on revenue and market access.

• One-off integration costs estimated at SEK 5–10 million over three years.