S&T AG: S&T AG ACQUIRES ISKRATEL GROUP

Linz (pta066/30.06.2020/21:00 UTC+2) S&T AG ACQUIRES ISKRATEL GROUP

Linz, 30. June 2020 - S&T AG (ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock exchange symbol: SANT) today signed contracts for the acquisition of Iskratel Group, one of the leading providers of information and communications technology (ICT) for operators of telecommunications, railway and energy networks as well as its solutions in the industrial automation sector.

Iskratel Group is based in Kranj / Slovenia, has more than 70 years of experience in ICT projects and is represented primarily in Adriatic and Eastern Europe through its group companies. In 2019, with 900 employees it generated sales of EUR 115 million and a slightly positive result. Originally a provider of telecommunications solutions with full range portfolio for optical access solutions, IMS core and edge networks, critical communications and safe city solutions, Iskratel Group has meanwhile developed into a software provider of complex IIOT applications, including 5G systems. It is the developments in IIOT software, and 5G applications in particular, that complement and strengthen the S&T product range. The acquired 5G know-how and the solutions based on it can be combined with established S&T products in the smart industry sector such as SusieTec. The roll-out of 5G equipment on high-speed trains can also be advanced while strengthening the transport business. This is an area where S&T Group has already implemented joint projects with Iskratel in Slovenia. Further synergies will open up in areas such as, sourcing, manufacturing and sales, with S&T providing Iskratel access to the Western European market. In return, S&T can draw on approximately 500 cost-efficient software engineers and excellent long lasting Iskratel's reputation in Adriatic and Eastern Europe.

The fixed purchase price of EUR 37.5 million corresponds to a revenue multiple of around 0.35. Variable purchase prices were also agreed depending on future profit developments. The transaction is scheduled for closing in autumn 2020, once all official approvals have been obtained.

Zeljko Puljic, CEO Iskratel: "Iskratel Group set itself a very clear and ambitious strategic growth plan which can be much more efficiently realized through numerous synergies within S&T Group. Faster portfolio development and market penetration, especially in areas of IIOT and 5G solutions, safe and smart communities, virtualization of access and core communication networks, will be fostered through the combined know-how, innovation thrive, sourcing and sales network."

Hannes Niederhauser, CEO S&T AG: "We have been following 5G developments for a long time, have identified applications ready for this technology, and expect to gain an advantage by strengthening our 5G product portfolio. Due to the synergies we will be able to increase the Iskratel result to over 10% EBITDA within the next 2 years. With this acquisition, we are positioning ourselves even more strongly for the future in our focus areas of smart factories and train radio for high-speed trains."

ON ISKRATEL
Iskratel (www.iskratel.com) is a leading European provider of communications solutions for the digital transformation of the telecommunications, transport, public safety, and energy industries. With its own R&D and manufacturing centres, and a global footprint in more than 50 countries, Iskratel meets the demands for carrier-grade and mission-critical connectivity of fixed and mobile operators worldwide, as well as those of large-infrastructure industries, such as railways and power utilities. From roads to rails, from cities to countryside, from mine to factory, Iskratels aim is to make connectivity and operations smarter and safer. Iskratel is link to sustainable digital future.

ON S&T AG
S&T AG (www.snt.at) heads a technology group that employs some 4,900 people and that operates in more than 30 countries around the world. S&T AG is listed on the Frankfurt Stock Exchange (ISIN AT0000A0E9W5, WKN A0X9EJ, SANT). S&T forms part of the Exchange's TecDAX® and SDAX® indexes. S&T is a leading supplier in Central and Eastern Europe of IT systems and of the services and solutions comprised in them. In 2016, S&T took a stake in Kontron AG - one of the leaders on the world's market for embedded computers - which has enhanced its portfolio of proprietary technologies used in the fields of appliances, cloud security, software and smart energy. This move has made S&T one of the leading suppliers on the international markets for Industry 4.0 and IoT (Internet of Things) technologies.

Linz, June 30 2020

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Emitter:	S&T AG Industriezeile 35 4021 Linz Austria
Contact Person:	Nicole Nagy, Investor Relations
Phone:	+43 (1) 801911196
E-Mail:	nicole.nagy@snt.at
Website:	www.snt.at
ISIN(s):	AT0000A0E9W5 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt