Summary of FormPipe Software (F3J) Update / Briefing August 18, 2025 Company Overview - **Company**: FormPipe Software - **Industry**: Document and case management software Key Points Divestment Announcement - FormPipe announced the divestment of its public business area, a decision made by the board to focus on the LaserNet business area and maximize long-term shareholder value [1][2] - The divestment is driven by strong interest from potential bidders for the public business area [2] Financial Details of the Transaction - Total consideration for the divestment is up to SEK 850 million (approximately $85 million) [3] - Cash payment at closing will be SEK 775 million, with a loan note of SEK 50 million payable in 2029 at an interest rate of 4.25% [4] - An additional potential payment of SEK 25 million may occur if STG Partners achieves certain returns on investment [4] Revenue and Growth Metrics - The public business area has an annual recurring revenue (ARR) of SEK 239 million, with a growth rate of 7% expected in 2024 [6] - The public business area reported a revenue of SEK 306 million, showing a slight decline compared to the previous year [6] - Adjusted EBITDA for the public business is SEK 93 million, with a cash EBITDA margin of 15% [7] Remaining Business Focus - Post-transaction, FormPipe will focus on the LaserNet business, which has an ARR of SEK 220 million and a growth rate of 21% in 2024 [7] - LaserNet's revenue is projected at SEK 223 million, with an 11% growth rate in 2024 [8] - Adjusted EBITDA for LaserNet is SEK 37 million, with a cash EBITDA margin of 10% [8] Business Model and Market Position - LaserNet specializes in document output management, crucial for order fulfillment and compliance in various industries [10][11] - The company is integrated with ERP systems and has a strong presence in the Microsoft Dynamics ecosystem [11] - SaaS revenues currently account for 68% of total revenues, with expectations for this share to increase over time [12] Historical Performance and Future Outlook - Recurring revenues have grown from SEK 81 million in 2020 to SEK 207 million in Q1 2025, indicating a stable revenue stream [13] - The company plans to elaborate on its future expansion strategies during a Capital Markets Day in November [13] Brand and Reporting - Following the completion of the transaction, FormPipe will continue to use its brand for an interim period before rebranding [14] - A Q2 report is scheduled for release, inviting questions from stakeholders [14] Additional Important Information - The extraordinary general meeting is set for September 17, with the transaction expected to close by Q4 2025 [5] - Major shareholders representing 20% of the votes have already committed to the transaction [5]