Høvik, 27 January 2022: House of Control (HOC) has signed an agreement with Cillco Technology AS, who will take over ‘on-premises’ customer contracts outside of the company’s core business as well as approximately 30 FTEs from HOC’s subsidiary DinERP AS. Annual Recurring Revenue (ARR) from the contracts is approximately NOK 14 million, and House of Control expects annual cost savings of approximately NOK 30 million.
The agreement with Cillco Technology will take effect from 1 March 2022.
“This will have significant positive effects on our operations and our finances. Our focus should be on selling our core products, and improved utilization of our sales organization will strengthen our growth further. Following this transaction, House of Control expects to reach EBITDA break-even in 2022 and a positive cash flow in 2023,” says CEO Lasse Sten in House of Control.
The transaction will imply that House of Control’s results for 2021 will be changed with impairments reflecting intangible and other assets related to DinERP AS.
The agreement covers solutions and services developed in DinERP before the company became a part of House of Control Group, and mainly comprise customer deliveries based on software installations in IT-environment on customer premises.
“DinERP became part of House of Control in the summer of 2020 to strengthen our product development, and the acquisition has been crucial for our ability to launch several new and unique Software-as-a-Service (SaaS) solutions. When Cillco Technology now takes over DinERP’s legacy business our portfolio consists exclusively of strategically important SaaS products,” says Sten.
Cillco Technology will retain the responsibility to service and further develop the above-mentioned SaaS solutions developed by DinERP that will continue to be marketed and sold by House of Control. Cillco Technology is a newly incorporated company founded by DinERP employees, and under the agreement the company will take over responsibility for all employees in DinERP AS.
“House of Control is on track to reach our target to build a portfolio with ARR of NOK 500 million by the end of 2025 through organic growth. The company’s growth plan is fully financed with solid liquidity. Further equity financing will not be required to reach this goal,” adds Sten.
At the end of 2021, House of Control had ARR of NOK 211 million, including the contracts which will be transferred to Cillco Technology. This compares with NOK 146 million at the end of 2020 and NOK 102 million at the end of 2019. The company presents preliminary figures for 2021 on 17 February 2022.
For further information please contact:
CFO Carl Fabian Flaaten
Cell: +47 90 04 31 84
About House of Control:
House of Control develops SaaS (Software as a Service) solutions. These are digital tools that the CFO can easily apply to improve the performance of the finance department and – ultimately – the whole company. The CFO toolkit contributes to at least four important tasks: Cut costs, save time, reduce risk, and improve compliance – all key ingredients of a better-working finance department. Private and public enterprises use the software to manage contracts and assets, comply with IFRS 16 requirements, communicate with suppliers, and organize procurement. House of Control’s strong revenue growth is supported by a unique salesforce, and approximately 95 percent of sales are annual recurring revenues.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.