Saturday, September 26, 2020

CLX Communications AB acquires Xura Secure Communications GmbH

CLX Communications, a leading global provider of cloud-based communication services, announces that it has acquired the German technology company Xura Secure Communications GmbH, a subsidiary of Xura Inc.

“CLX was founded on a vision to become the world’s largest and leading player in the market for mobile cloud-based communications, with solutions for text, voice and Internet of Things – IOT. Following the IPO in October 2015, the acquisitions in 2016 of Mblox and Sinch AB, and now the acquisition of Xura Secure Communications GmbH, were strategic steps in achieving that vision,” says Johan Hedberg, President and CEO, CLX Communications.

CLX’s strategy is to build a leading global market position through acquisition, and following the two acquisitions last year, it has quickly become a major power in cloud-based communications. In addition, CLX’s strong customer base consists of many leading brands and enterprises, in industries that collectively represent a very exciting opportunity for further growth.

“Through the acquisition of Xura Secure Communications GmbH we bring further value to our customers by offering market-leading security solutions,” concludes Johan Hedberg.

Background and rationale for the acquisition of Xura Secure Communications GmbH

The market for communication between companies’ business-critical applications and customers (A2P) is growing very strongly, irrespective of whether this uses text messaging, voice-based solutions or the Internet of Things – IOT. Even before its market listing in 2015, CLX had a clear strategy to take a leading role in the consolidation of a fragmented market. The acquisitions of Mblox, Sinch and now Xura Secure Communications are clear evidence that CLX is delivering on this strategy.

Since it’s launch,  Xura Secure Communications GmbH has succeeded in building a strong market position and today has a market share of over 30 percent in Germany. Through the acquisition of Xura Secure Communications GmbH, the Enterprise Division of CLX Communications has strengthened its considerable presence in Germany.

Xura Secure Communications GmbH also has a strong position in banking, logistics and aviation, and has for a number of years delivered services such as secure login for online banks, notifications for logistics companies and check-in for airlines.

The transaction

Price

CLX is acquiring Xura Secure Communications GmbH at a price of USD 15.5 million (equivalent to approximately SEK 138 million) on a cash- and debt-free basis. The purchase price is being paid in cash in connection with the shares being made available.

Furthermore, an additional consideration of USD 1.5 million (equivalent to approximately SEK 13.4 million) can be payable conditional on reaching set targets relating to the outcome of Xura Secure Communications gross profit in the current year.

Information about Xura Secure Communications GmbH

Xura Secure Communications GmbH was founded in 2001 (under the name Mindmatics), and in 2014 the company was acquired by Acision, which later changed its name to Xura Secure Communications.

The company has since built a strong market position in Germany. The company has 16 employees at its office in Munich.

Xuras revenues were 25.5 MEUR in 2016 with an EBITDA of 2.14 MEUR.

Estimated impact on CLX’s operations

During 2017-2018 it is estimated that the acquisition of Xura Secure Communications GmbH will cost CLX in the range of SEK 20-24 million in integration and restructuring costs. The transaction costs are expected to be in the range of SEK 6-8 million, charged to profit in Q1 2017.

Timetable, integration and organization:

The company is consolidated as of 16 February 2017, after which the planned integration work will commence and CLX expects Xura Secure Communications to be fully integrated toward the end of 2018.

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