Allgon AB has signed an agreement to acquire Wireless System Integration Sweden AB, a fast-growing company within IoT (Internet of Things). In connection with this, the Allgon group also creates a new business area for industrial IoT where additional potential acquirements can be added in the future.
Wireless System Integration Sweden AB (WSI) is a design house developing wireless products and systems. The company has in recent years experienced a strong growth and influx of new customers. Before the summer, WSI was chosen as partner for development and manufacturing of products to American Nvidia, one of the largest companies for graphics processors used for artificial intelligence, deep learning and virtual reality.
WSI, based in Kista, Stockholm, currently has 20 employees. In 2015, WSI had a turnover of SEK 32 million with an operating profit of SEK 2,4 million while the turnover of 2016 is estimated to an amount of approximately SEK 45 million with an operating profit of SEK 4,5 million.
Allgon makes the acquisition, which is planned to be completed in the fourth quarter of this year, through buying shares of WSI from the four current owners at a price equivalent to SEK 41 million. The purchase price will be paid partly in cash of SEK 25 million, partly by a promissory note of SEK 11 million as well as a directed share issue of SEK 5 million.
– Through this acquisition, we are putting the first piece of the puzzle in establishing a new business area, Industrial IoT. WSI has an exciting business that complements the offers from other companies within our group. We have followed WSI for some time and are impressed by their success journey. We are looking forward to working with the founders and their team to develop the business further, says Johan Hårdén, CEO of Allgon AB.
– We can see that our major international customers as well as the smaller clients become more and more dependent on collaborations with flexible specialized companies to keep up with the ongoing global digitalization. WSI has a sound knowledge and an extensive experience in offering clients a full responsibility in the process from idea to final product within IoT, Virtual Reality and advanced radio solutions. This agreement with Allgon puts WSI into a larger context in which we can get further exchange on our continuous expansion and growth, says Jan-Åke Lindqvist, CEO of Wireless System Integration Sweden AB.