05. July 2022 - Elop AS (Elop) and Nordic Infrastructure Group AS (N.I GROUP)
have agreed the principal terms of an agreement where Elop is to acquire 100
percent of the shares in N.I GROUP in a deal that values Elop at NOK 2.80 per
share. 

With this strategic move ELOP enters the Nordic infrastructure market and
expects to be profitable by 2023. 

The transaction enables Elop to move higher up in the infrastructure
maintenance, construction, and TIC (testing, inspection, and certification)
value chain, and get closer to key business enablers like asset owners and
infrastructure owners.

"This transaction is a big and important step forward for Elop. The group will
no longer only deliver technology, we will now provide asset owners with a wider
range of services that includes inspections, education, construction, and
maintenance. We believe this will help to fast-track the adoption of Elop's
ultrasound software and scanning technologies. This will enable us to get closer
and to have a more direct dialogue with owners and managers of infrastructure,"
says Elop board member Kristian Lundkvist.

"Going forward we will utilise N.I GROUP as a growth platform to grow within the
Nordic infrastructure market. In addition to organic growth, we will continue to
consider M&A and become a consolidator within the infrastructure niches we find
relevant and interesting," Lundkvist continues. 

Lundkvist pinpoints the fact that the Simplifai sale has been a key enabler to
secure this deal with N.I GROUP at favourable terms for Elop's shareholders.

"As stated on 4. May, the divestment of Simplifai, in an all-cash deal and our
subsequent strong balance sheet, provides us with the financial strength to
accelerate our growth plans, open new markets quicker and evaluate strategic
options," adds Lundkvist. 

Elop had a cash position of NOK 75 million end of May, Elop expects to receive
another NOK 90 million upon closing of the Simplifai sale and a second
instalment from the Simplifai transaction of NOK 40 million within 36 months. No
cash will be used in the N.I GROUP transaction. The N.I GROUP transaction is
share based only, thus securing a continued strong balance sheet for Elop. 

ABOUT N.I GROUP
N.I GROUP - Nordic Infrastructure Group - is a group with a rapidly growing
presence in the Norwegian and Swedish infrastructure markets. Through its
subsidiaries, the group delivers entrepreneurial services as well as tools and
equipment to the railway and tramway industries