INVL Technology - Notification on material event

INVL Technology completed assessment of M&A intermediaries and chose a service provider

INVL Technology (hereinafter – the Company) gives notification that it has completed a selection process for potential providers of M&A intermediary services. Based on the main selection criteria, on 18 March 2024 the Company signed an agreement with a company of the Corum group, specifically, the Zurich branch of Luxembourg-based Corum Group International S.à.r.l., to act as an M&A intermediary in seeking to conclude transactions for the sale of the entire portfolio of businesses under management by INVL Technology before the end of the Company’s envisaged period of operation.

The M&A intermediary with whom the Company has signed an agreement is an experienced industry expert in merger and acquisition services specializing in work with software and information technology companies, with an extensive contact network of potential buyers around the world and the ability to provide the Company with strategic support in the sale of the businesses it holds under management.

The duration of the agreement is tied to the end of the Company's period of operation, which is mid-July 2026. The remuneration payable to the service provider for services rendered consists of two parts: a fixed fee and a success fee. The success fee is specified in percentage terms; its amount will depend on the price of the assets sold. Under the agreement with Corum Group International, the fee’s size and manner of calculation are confidential information.

When specific sales of businesses under management are completed and an obligation arises to pay a success fee to the selected M&A intermediary, that will be communicated separately, disclosing the material details of the transaction, including the final cost of the success fee.

Additional information:

INVL Technology, a company that invests in IT businesses, has chosen M&A intermediation service provider Corum Group’s Luxembourg-based unit, Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses. INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.

“As the end of the investment company’s operation term approaches, we are bringing in an M&A intermediary to help us sell the portfolio companies at the maximum price. Our choice is based on Corum Group International’s experience and expertise in M&A transactions, including the sale of companies in the IT sector, and its extensive network of potential buyers around the world,” says Kazimieras Tonkūnas, the Managing Partner of INVL Technology.

In selecting the intermediation service provider, INVL Technology also noted its ability to accurately value IT sector businesses in terms of market trends, financial performance and growth potential, as well as its the experience and professionalism of Corum Group International's team in Europe and the US.

“We are impressed by the quality of the IT services and cybersecurity assets that INVL Technology has under management and honoured to advise the company in seeking the best buyers for those assets,” says Jaber Tannay, Senior Vice President at Corum Group. 

A contract with the Zurich branch of Corum Group International was signed on 18 March 2024.

Under the agreement, the remuneration payable to Corum Group International for services rendered consists of a fixed fee and a success fee. The success fee, which is specified in percentage terms, will depend on the price of the assets sold. Under the agreement with Corum Group International, the fee’s size and manner of calculation are confidential.

Corum Group is an expert and leader in merger and acquisition services, specialising in servicing the technology sector worldwide, with a heavy focus on software and IT services companies. It has an extensive network of potential buyers all over the world and a team of experienced senior investment advisors, all of whom are former executives of technology companies. The Corum Group has experience providing strategic support in the sale of portfolio companies.

INVL Technology’s businesses under management include the cybersecurity company NRD Cyber Security, the GovTech company NRD Companies and the Baltic IT company Novian.

The aggregated revenues of INVL Technology’s portfolio companies in three quarters of 2023 totalled EUR 42.29 million and were 28.5% more than in the same period of 2022. Their gross profit grew 25.6% in the same period of comparison to EUR 11.54 million, while their aggregated EBITDA rose 83.8% to EUR 1.56 million.

The shares of INVL Technology are traded on the secondary list of the Nasdaq Vilnius stock exchange (INC1L).

The person authorized to provide additional information:
Kazimieras Tonkūnas
INVL Technology Managing Partner
E-mail k.tonkunas@invltechnology.lt