WPTG sets out a disciplined approach to acquisition funding as Aixia integration takes priority

White Pearl Technology Group AB (publ) (“WPTG” or the “Group”) today sets out its approach to future acquisitions and addresses shareholder questions about share issuance. Following a period of expansion in the Nordics, the Group’s immediate priority is to integrate Aixia, strengthen cash generation and turn its combined AI capabilities into a clear customer offering.

Acquisitions have brought WPTG talented people, customers and capabilities. We deliberately sought to bring the entrepreneurs behind those businesses into WPTG as shareholders and long-term partners. The next test is what we create together. Growth in the size of the Group must translate into lasting value for each share.
— Ebrahim Laher, Group CEO

Share issuance in future acquisitions

WPTG intends, as far as practicable, to structure new acquisitions without issuing WPTG shares. The Group will consider available cash, prudent bank financing, seller financing and payments linked to performance after completion. Shares may still be used where the strategic and economic case justifies them, but they will be a last choice for the foreseeable future.

The approach applies to future transactions. Previously agreed acquisitions, including Aixia and GVO Media Group, were structured on their announced terms. WPTG will assess any new deal against its expected return, cash generation, integration demands and effect on existing shareholders. Avoiding share issuance will not justify excessive borrowing or paying an unsuitable price.

Clarifying the August directed issue

WPTG also recognises the questions raised by its approximately SEK 6 million directed share issue announced in August. This was a cash subscription to WPTG, intended to strengthen the Group’s financial flexibility and support its strategic initiatives. It was separate from the GVO purchase consideration, which was structured in WPTG shares, including a performance-linked component.

Part of the context for the cash subscription was the GVO transaction: a substantial portion of the external subscription came from parties connected with that transaction, who chose to invest cash in WPTG alongside the share-based acquisition. The Board considered the limited issue an efficient way to add capital at that stage. WPTG understands shareholders’ concern about dilution and will weigh the cost of issuing shares carefully in future capital decisions.

From the Aixia transaction to an integrated AI offering

Aixia integration is now WPTG’s first operating priority. Aixia’s infrastructure, compute, data-centre expertise and AiQu platform complement WPTG’s advisory, enterprise software, applied AI and international customer relationships. The Group is working to bring these capabilities together through the WPTG AI Factory, so customers can move from identifying an AI use case to deploying and managing a secure solution.

Mattias Bergkvist, appointed Deputy Group CEO in September, is working with Laher and the wider management team on European operations, integration, operational performance and commercial execution of the AI strategy. More than half of Group revenue on an annualised basis is now generated in Europe, principally Sweden and the Nordics.

Our work is moving from assembling capabilities to connecting them. That means clear joint offerings, stronger collaboration around existing customers, disciplined reporting and a sharper focus on cash. Shareholders should judge our progress by integration, customer adoption and financial outcomes.
— Ebrahim Laher, Group CEO

WPTG’s focus for the next phase is to make those improvements part of its regular operating model, with greater accountability across its businesses and a more coordinated approach to cross-selling and upselling.