Funkwerk AG and euromicron AG sign investor agreement

Kölleda, 10 July 2019 - Funkwerk AG today concluded an investor agreement with euromicron AG, Frankfurt/Main, for the subscription of up to around 28 % of the shares in euromicron AG (WKN A1K030). The new shares are to be issued in the form of cash capital increases in two tranches. The subscription price was set at EUR 3.40 per share.

The first tranche is to be carried out to the exclusion of shareholders as part of a private placement to Funkwerk AG in the amount of 10 % of the existing share capital. The second tranche will be acquired firstly by exercising subscription rights and secondly by subscribing to those shares that are not subscribed to by the existing shareholders of euromicron AG. The acquisition of the shares from the second tranche will be finalised following merger control clearance in the Federal Republic of Germany and Austria, which is expected to be granted around mid-August 2019. The total costs of the transaction for Funkwerk will amount to a maximum of around EUR 10.3 million. Following the acquisition of the backstop shares, it is not intended to acquire further voting rights within the next twelve months by purchase or otherwise. The funds used for the acquisition come from Funkwerk AG's own resources.

euromicron AG, which is listed in the Prime Standard segment of the Frankfurt Stock Exchange, enables its customers to successfully implement the digital transformation with innovative solutions. As a group of companies with a medium-sized character, it understands the demands and challenges that digitalisation entails for companies. Apart from developing and implementing its own customised, future-proof solutions, euromicron AG also integrates solutions from market-leading partners. As a result, it enables its customers to gradually migrate existing infrastructures to the digital age, develop new business models and leverage their potential.

For both companies, the investment forms the basis for a strategic partnership that will further strengthen their respective technological solution expertise and expand their market access. There are considerable opportunities for expansion, particularly in the field of digitalised building technology and critical infrastructure, where Funkwerk has a high level of recognition due to its broad base of installed video security and traveller information systems. The collaboration also offers Funkwerk the opportunity to expand its service portfolio for its customers.