For the purposes of this transaction, Nsecure is valued at approximately 10x its operating profit before interest taxes depreciation and amortisation (EBITDA) in 2016. The transaction will generate net proceeds of around € 25 million for Nedap, while its book profit is expected to amount to at least € 15 million.
Nedap intends to use part of the net proceeds to buy back up to 5% of Nedap shares in issue, subject to the conditions and limits imposed in the share acquisition authorisation granted to the Board of Directors by the general meeting of shareholders (on 6 April 2017). This move would cover Nedap’s obligations arising under the employee schemes. If Nedap does indeed acquire shares, the market will be informed accordingly.
The rest of the net proceeds generated by the transaction will partly be used for a one-off increase of the dividend for 2017. The amount by which the dividend will increase will be announced upon publication of the annual figures on 15 February 2018. Where applicable, costs associated with the acquisition of shares will be taken into account, as will the required investment capacity and capital structure, in keeping with the financial objectives.