BTS Group - Acquires Bates Communications in the US

Bates had USD 7m sales in 2020, adds 3% to BTS (‘21e) Strong client portfolio with limited overlap No price disclosed: cash & share payment (~2% dilution) Bates Communications adds 3% to 2021e sales BTS acquires Boston based Bates Communications, a team of 23 employees and USD 7m in sales in 2020. This adds 3% to both the employee base (Q3’20) and 2021e sales. Bates Communications will be integrated in the segment BTS North America. Founder Suzanne Bates and all members of her leadership team have agreed to stay on with BTS for a minimum of 3 years to accelerate the integration and growth strategy.

Focuses on top management leadership Bates Communications is helping some of the top companies in the world execute their strategies through C-Suite Advisory, Executive Coaching, Team Performance, Leader Communications, Executive Presence Leadership Development and Executive Succession and Onboarding, primarily in the USA. All of these services, including related solutions and proprietary IP, will strengthen and expand current BTS offerings, according to the company. The client portfolio looks strong, with for example AIG, American Express and Fidelity in the financial sector, SAP and Intel in the tech sector, Kraft Foods in retail and Bristol-Myers Squibb and Merck in the healthcare sector, among other clients (see full disclosure on next page).

According to BTS, there is only a limited overlap with BTS’ clients, which creates potential for cross-selling of services. Pays with cash and shares, price not disclosed The acquisition includes an initial cash consideration (not disclosed) as well as a new issue of BTS shares up to 1 MUSD (36k shares at SEK 227, ~2% dilution). Additional amounts will be paid out in 2021-2024 provided Bates meets specific targets 2020-2023.

The transaction is effective as soon as the completion procedures have been finalized, which is expected in the coming week, according to the company..