The Extraordinary General Meeting resolved, in accordance with the Board of Directors' proposal, to approve the sale of the Company's Public Sector business area to a holding company of STG ("STG" or the "Purchaser").

Information about the Transaction

On 18 August 2025, the Company announced that it had entered into an agreement with a holding company of STG for the sale of the Company's Public Sector business area (the "Transaction"). The Transaction includes all assets of the Public Sector business area (collectively, "Formpipe Public"), and is effected through a sale of the newly established subsidiary Formpipe Sverige AB, to which Formpipe Public will be transferred prior to completion of the Transaction.

The purchase price for Formpipe Public is up to SEK 850 million on a cash free and debt free basis. At closing, SEK 775 million will be paid in cash (subject to net debt and working capital adjustments) and SEK 50 million will be paid through the issuance of a loan note payable in 2029 with a compounding interest of 4.25% per annum and subject to certain potential deductions based on certain metrics related to the separation process. The Purchaser has also undertaken to pay an additional purchase price of SEK 25 million if STG achieves a certain return on its investment.

In addition to approval by the Company's shareholders at an Extraordinary General Meeting, completion of the Transaction is conditional upon receipt of necessary clearances or approvals from relevant authorities under the foreign direct investment regimes in Sweden and Denmark, that 90% of the contracted revenue stemming from Formpipe Public's customers in Sweden agree to be transferred to Formpipe Sverige AB, and the completion of necessary separation steps.  

Closing of the Transaction is expected to take place in Q4 2025, subject to the timing of the regulatory clearances or approvals.

Following completion of the Transaction, Formpipe will focus entirely on its retained Lasernet business area ("Lasernet"), a leading enterprise document and customer communication software platform. The platform is currently used by thousands of customers in several geographies and the software is sold through a global partner network. The platform is primarily delivered as Software as a Service (SaaS), which provides a high share of recurring revenue.

For further information about the Transaction, please see the notice of the Extraordinary General Meeting and the press release announced on 18 August 2025, available on the Company's website ir.formpipe.com.