AKVA group ASA: Acquisition of 100% ownership in Observe Technologies

AKVA group ASA (AKVA) is pleased to announce the completion of the acquisition of 100% of the shares in Observe Technologies Limited (Observe) to further strengthen and complement its digital capabilities.

Observe has, through its partnership with AKVA, successfully developed and sold artificial intelligence (AI) feeding solutions to more than 100 farm sites worldwide. Documented results show a decrease in feed conversion ratio by automating the feed process using AI technology.

Knut Nesse, CEO of AKVA:

"The acquisition of 100% shares in Observe is of great strategic importance to AKVA and will further develop and complement our digital offerings to the market. AKVA now offers four digital products to the market: i) AKVA Fishtalk, ii) AKVA Observe, iii) AKVA Connect and iv) AKVA Submerged. By combining these products, we now offer a complete digital solution to enhance precision fish farming.”    

Hemang Rishi & Pieter Fabry, CEO & CTO of Observe Technologies:  

"This is a unique opportunity to be a key offering in AKVA’s precision farming solution while giving us the operational flexibility to continue to develop the business.  We firmly believe AKVA’s approach, combined with operational gains we have already provided, will drive the industry towards even more sustainable outcomes.”

Pre-acquisition AKVA owned 33.69% of the shares in Observe. Following the transaction AKVA will be the sole shareholder of Observe and own 100% of the shares. The minimum purchase price for the 66.31% of the shares of GBP 13.7 million, has partly been settled by cash consideration, and partly by way of a sellers’ credit that will be settled in instalments to be paid over the next three years. Furthermore, an additional consideration and earn out consideration up to a maximum total purchase price of GBP 20.5 million will be paid if certain conditions are met. The cash amount paid by AKVA at closing has been financed by utilising options under AKVA's existing bank financing.

Dated: 5 July 2024
AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Knut Nesse	Chief Executive Officer
Phone:	+47 51 77 85 00
Mobile:	+47 91 37 62 20
E-mail:	knesse@akvagroup.com

Ronny Meinkøhn	Chief Financial Officer
Phone:	+47 51 77 85 00
Mobile:	+47 98 20 67 76
E-mail:	rmeinkohn@akvagroup.com

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This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act. The information was submitted for publication by Ronny Meinkohn (CFO) (contact details as set out above) on 5 July 2024 at 16:08 CET.

About AKVA group ASA

AKVA group ASA is a global technology and service partner that deliver technology and services that helps solve biological challenges within the aquaculture industry. Good operational performance and fish welfare ensures sustainability and profitability for the customer. This is the premise for everything we deliver, from single components to services and complete installations. In-depth aquaculture knowledge, extensive experience and a high capacity for innovation characterizes and enables us to deliver the best solutions for both land based and sea based fish farming.