Specialist device manufacturer for seniors Doro agreed to a takeover by Norwegian children smartwatch provider Xplora Technologies, in a deal worth approximately SEK829 million ($81.9 million).
Xplora stated it had offered SEK34 per share for Doro representing a 38.2 per cent premium on yesterday’s (26 September) closing share price, an offer which has been unanimously recommended by Doro’s board of directors.
Xplora, which describes itself as a leading provider of innovation smart devices and services for families, explained the proposed acquisition of Doro will help it accelerate its progress and boost subscriptions for services in various categories.
The company claims to be a leader in providing smartwatches for kids, with 500,000 devices sold in the category in the last year.
It plans to build on Doro’s strong position in offering devices for seniors and add “Xplora’s high margin SIM services to create a new, strong recurring revenue stream”.
Pitching the tie-up further, Xplora stated the two companies have complementary financial profiles with Doro generating steady revenue, strong cash-generating capabilities and high-margin hardware sales.
Geographically, it added both companies have strong presences in the Nordics, while Doro is well-established in France and the UK and Xplora has a strong foothold in Germany.
Sten Kirkbak, CEO and founder of Xplora, said the deal is a strategic move to accelerate Xplora’s growth into the senior market.
“Doro’s impressive track record – selling more than 1.5 million mobile units annually – has certainly caught our attention, and we see a tremendous opportunity to build on that success.”
Investors holding more than 90 per cent of shares in Dora will now need to green light the bid, with the acceptance period starting on 18 October and ending on 8 November 2024.
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