TalkPool acquires Dutch-based Camouflage in line with its partnership expansion strategy

This information is information that TalkPool is obliged to make public pursuant
to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, at 15.00 CET on 30 October, 2016.

TalkPool AG acquires the Dutch company Camouflage B.V. together with its local
JV partner Cejege BV. TalkPool pays 500,000 euro for 65 percent of the shares in
Camouflage. The acquisition of Camouflage marks the first step in TalkPool’s
previously announced committed plans of expansion.
Camouflage specializes in telecom equipment camouflaging in the BeNeLux markets,
with market leadership in Belgium and the Netherlands. Many local telecom
network operators turn to Camouflage when they need modification of the
appearance of telecom equipment. Most of the current work is for normal 4G macro
sites but the deployment of small cells is increasing. Furthermore, new
technologies such as IoT and 5G will increase the number of sites deployed,
especially in cities and towns.

“This deal is important to us as it is the first time we enter into a new market
through an acquisition with a local JV partner. Camouflage is addressing a niche
that we can offer our network clients in all markets. Most of our M&A efforts
are in the direction of high-tech IoT system integration, but this is proof that
we’re able to find hidden gems in the mature segment of network services. We’re
also eager to increase our market presence in Europe and this is a step in that
direction”, says Erik Strömstedt, CEO of TalkPool.

The deal values Camouflage to 900,000 euro, which is 2.8 times the EBITDA for
2015. The owner of Camouflage will receive 800,000 euro as consideration in cash
and 100,000 euro as earn-out, depending on the performance of Camouflage during
the coming six months. The local partner company Cejege BV., which is managed by
TalkPool’s Board member S. Schroeder, buys 35 percent of the shares. Camouflage
had an EBITDA of 33 percent and net margin of 25 percent in 2015, and the
acquisition will improve TalkPool’s consolidated profitability. Camouflage’s
revenues of 2015 amounted to approximately 960,000 euro and TalkPool believes it
can assist Camouflage to grow through an increase in international presence. The
acquisition proves that TalkPool is able to expand its network services business
into new markets in highly profitable niches at reasonable cost. The founder,
current owner and manager of Camouflage, Peter von Brunschot, wishes to leave
the company after a transition period. The new owners, TalkPool and Cejege, will
form a new Board of Directors, which in turn will appoint a pre-qualified
Managing Director.

For more information, please contact
Erik Strömstedt, CEO of TalkPool, erik.stromstedt@talkpool.com
Tel: +41 81 250 2020

About TalkPool
TalkPool builds, maintains and improves telecommunication networks globally.
Through its cutting-edge technical expertise, long experience and agile business
model, TalkPool offers global telecom vendors and operators high-quality
services on short notice no matter the location. Moreover, TalkPool is one of
few companies with actual solutions and contracts in place in the exciting IoT
-market. Remium Nordic AB is TalkPool’s Certified Advisor.