Thunderful Group enters into an agreement regarding changes of additional earn-out component in relation to the acquisition of Coatsink Software Ltd

14 October 2022 · Attachments
Thunderful Group (”Thunderful”) announces today that an agreement has been entered into with the sellers of Coatsink Software Ltd (“Coatsink”) to extend the earn-out period.

In accordance with previously communication, there was an opportunity for the sellers of Coatsink to receive an additional earn-out component in relation to the sale of the company which took place on October 2, 2020. In addition to the initial consideration, there was the possibility of additional earn-out components of MGBP 42.5, to be paid provided that certain agreed-upon financial targets were met on a yearly basis in 2021 and 2022. As of today, MGBP 15.7 has been paid for 2021.

Thunderful can today state that an agreement has been entered into with the sellers of Coatsink to extend the earn-out period from 2022-12-31 to 2025-12-31 with annual payments. In total, an additional amount of MGBP 9.0 may be paid by way of cash payment to the sellers of the company, provided that certain financial results are reached during 2023-2025. A cap of 0.5x EBIT has been agreed for the current period. This amount is contained within the originally agreed additional earn-out component of a maximum of MGBP 42.5.

Thunderful assesses that this change in additional earn-out component as well as the change that was communicated on August 22, 2022, regarding the final payment of additional earn-out component for the acquisition of Robot Teddy, together have a neutral impact on the operating profit in Thunderful’s Q3 report

This information is such information as Thunderful Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 22.00 CEST on 14 October 2022.