SoftwareOne to Acquire Crayon Group for $1.4 Billion

Investing.com — SoftwareOne Holding AG (SIX:SWON) announced on Thursday its intention to acquire Norwegian competitor Crayon Group (OL:CRAYN) in a deal valued at $1.4 billion.

Shares of the software and cloud solutions provider rose by 7% at 4:25 ET (9:25 GMT).

The agreement includes a voluntary stock and cash offer for all outstanding shares of Crayon, aiming to combine two significant players in software and cloud solutions.

This acquisition seeks to create a more substantial entity in the global tech market, leveraging both companies' strengths to meet increasing demands propelled by trends such as cloud adoption, artificial intelligence, and cybersecurity.

The deal values Crayon at NOK 172.5 per share, offering shareholders NOK 69 in cash and 0.8233 shares of SoftwareOne for each Crayon share. This represents a 36% premium to Crayon’s undisturbed share price.

The transaction is anticipated to close by the third quarter of 2025, contingent on regulatory approvals and acceptance by at least 90% of Crayon’s shareholders.

SoftwareOne characterizes the merger as an alignment of complementary strengths, including geographical reach, customer bases, and service offerings.

Cost synergies are expected to reach CHF 80-100 million within 18 months post-deal completion, alongside revenue synergies from enhanced offerings and increased sales efficiency.

Daniel von Stockar, SoftwareOne's chairman, stated that the combination will create value for both shareholders and employees, calling it a transformative step for both firms.

Raphael Erb, CEO of SoftwareOne, noted that the merger would bolster their capacity to serve customers, strengthen relationships with major technology partners such as Microsoft (NASDAQ:MSFT), and enhance their ability to tackle emerging tech challenges.

Financially, the combined entity is projected to generate CHF 1.6 billion in annual revenue with an adjusted EBITDA of CHF 334 million, excluding synergies.

The cash portion of this transaction will be financed through bridge facilities of CHF 700 million, with a forecasted net debt-to-adjusted EBITDA ratio below 2.0x by the end of 2025.

Crayon is set to appoint two members to SoftwareOne’s board, and the combined company will be managed by Co-CEOs to ensure continuity and collaborative leadership.