Crayon Christmas deal or long-term gold 

What we know:

  • This is the third time a potential deal between Crayon and SoftwareOne has been discussed in the media

  • This is the first time the companies have confirmed the rumors – They also underline that it is “no certainty that these discussions will lead to an offer being launched by SoftwareOne.”

  • SoftwareOne have had discussions for a long time with potential buyers of their company (private equity), and the board of directors was changed to a more deal positive board

  • After SoftwareOne share price has fallen 60% in 2024, and Crayon increased by 60%, the market cap of the companies is about the same (12-13 billion NOK)

  • Analysts estimates a potential offer that might be in the range from 170-220 NOK

Our recommendation and target price

  • Stay cool and wait for more information

  • We trust that Crayons board have the necessary competence and incentives to evaluate the industrial logic vs pricing

  • Our target price is 252 on a stand-alone basis

Conclusion:

The long-term prospects for Crayon are very bright regardless of this situation.

Disclaimer: Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)

 

Best regards,

Sverre and David.

Lillestrøm, Norway. 13.12.24