Enea acquires Network Intelligence software specialist Qosmos


Strengthening the capabilities to address next generation virtualized networks
STOCKHOLM, Sweden, October 24, 2016. Enea has signed an agreement to acquire
Qosmos, a privately held company with leading positions in IP traffic
classification and network intelligence. The total consideration amounts to
approximately 52.7 MEUR and will be financed through cash and bank loans. Qosmos
is headquartered in Paris and is estimated to generate sales of approximately
14.2 MEUR in 2016.

Closing of the transaction is subject to approvals from French government
authorities and is expected to be completed beginning December 2016.

“I am proud to announce this highly complementary acquisition, which provides a
significant and attractive extension of our portfolio. The combination of our
companies will benefit the joint customer base, open up new market segments, and
accelerate Enea’s growth going forward while maintaining a healthy profit
margin” says Anders Lidbeck, President and CEO of Enea.

Qosmos is a supplier of Network Intelligence software based on Deep Packet
Inspection (”DPI”) and commands a dominating share of its market. The company’s
software provides detailed real-time traffic visibility, which is a critical
component for applications such as mobile traffic management, cyber security,
and network analytics. More than 100 telecom networks worldwide use solutions
powered by Qosmos.

Network intelligence and IP traffic classification will also play a central role
in next generation virtualized network nodes and functions. As an example,
Qosmos has successfully shown how telecom operators can leverage real-time
traffic classification to automatically create any type of service combination
in an open, virtualized architecture. Together, Enea and Qosmos are building a
stronger offering in the area of Software Defined Networking (SDN) and Network
Function Virtualization (NFV).

”I am very happy to join forces with Enea, a larger and well-established
organization with a strong reputation in our adjacent markets,” says Thibaut
Bechetoille, CEO of Qosmos. “In the new virtualized networks, application
awareness is key for operators to deliver new, more personalized, and more
secure services to their customers. The combined entity is well positioned to
deliver products and services in this significant industry transition.”

Key figures and facts regarding Qosmos
Qosmos is a leading software supplier in the market for IP traffic
classification and network intelligence technology. The company supplies
software to vendors who embed real-time application visibility in their products
for traffic optimization, service chaining, quality of service, analytics, cyber
security and more.

  · 90 employees
  · Founded in 2000 and a leader in the network      intelligence software
market since 2006
  · Headquartered in Paris, regional offices in      Silicon Valley and
Singapore
  · Revenues: 14.2 MEUR in 2016 (est.)
  · Main product: ixEngine, the market’s most      deployed DPI engine
  · Customer types: vendors in the telecom,      networking and security
industries

Qosmos is a privately held company backed by venture capital firms Alven Capital
and Draper Esprit, the GfK Group, one of the world’s largest market research
companies, and the public investment bank, Bpifrance.

For more information about Qosmos, see www.qosmos.com

Further financial information
Of the total purchase price of approximately 52.7 MEUR, approximately 16.3 MEUR
is related to net cash and cash equivalents, leaving approximately 36.4 MEUR as
the enterprise value. The acquisition will be financed by cash-on-hand and a 165
MSEK bank loan. The parties have agreed that 10.0 MEUR of the purchase price is
a deferred payment to be paid 24 months after closing.

For 2017, Enea estimates that the acquisition will be EPS positive, while
slightly dilutive to the EBIT margin.

Pending government approval, the acquisition is estimated to close and be
consolidated into Enea Group accounts beginning of December 2016, and hence,
will have limited effect on revenue and earnings for the full year 2016.


Webinar
Investors, financial analysts, and press and are invited to attend a webinar
where Anders Lidbeck,
President and CEO of Enea will present the acquisition and answer questions.

Time: Monday October 24 at 10:00 am CEST.
Link: https://wonderland.videosync.fi/enea-press-conference
Phone number: SE: +46856642690, UK: +44 2030089806

This information is information that Enea AB (publ) is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set below, on October 24,
2016 at 07.20 CEST.

For more information visit www.enea.com/investors or contact:
Anders Lidbeck, President & CEO
E-mail: anders.lidbeck@enea.com

Fredrik Medin, SVP Marketing and Communication
Phone: +46 709 71 40 11
E-mail: fredrik.medin@enea.com

About Enea
Enea is a global supplier of network software platforms and world class
services, with a vision of helping customers develop amazing functions in a
connected society. We are committed to working together with customers and
leading hardware vendors as a key contributor in the open source community,
developing and hardening optimal software solutions. Every day, more than three
billion people around the globe rely on our technologies in a wide range of
applications in multiple verticals – from Telecom and Automotive, to Medical and
Avionics. We have offices in Europe, North America and Asia, and are listed on
Nasdaq Stockholm. Discover more at www.enea.com and start a conversation at
info@enea.com.

Enea®, Enea OSE®, Netbricks®, Polyhedra®, Zealcore®, Enea® Element, Enea®
Optima, Enea® LINX, Enea® Accelerator,  Enea® dSPEED Platform and COSNOS® are
registered trademarks of Enea AB and its subsidiaries. Enea OSE®ck, Enea OSE®
Epsilon, Enea® Optima Log Analyzer, Enea® Black Box Recorder, Polyhedra® Lite,
Enea® System Manager, Enea® ElementCenter NMS, Enea® On-device Management and
Embedded for LeadersTM are unregistered trademarks of Enea AB or its
subsidiaries. Any other company, product or service names mentioned above are
the registered or unregistered trademarks of their respective owner. © Enea AB
2016.

Pièces jointes

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