Allgon AB acquires the IoT-company Wireless System Integration Sweden AB

Allgon AB has signed an agreement to acquire Wireless System Integration Sweden
AB, a fast-growing company within IoT (Internet of Things). In connection with
this, the Allgon group also creates a new business area for industrial IoT where
additional potential acquirements can be added in the future.
Wireless System Integration Sweden AB (WSI) is a design house developing
wireless products and systems. The company has in recent years experienced a
strong growth and influx of new customers. Before the summer, WSI was chosen as
partner for development and manufacturing of products to American Nvidia, one of
the largest companies for graphics processors used for artificial intelligence,
deep learning and virtual reality.

WSI, based in Kista, Stockholm, currently has 20 employees. In 2015, WSI had a
turnover of SEK 32 million with an operating profit of SEK 2,4 million while the
turnover of 2016 is estimated to an amount of approximately SEK 45 million with
an operating profit of SEK 4,5 million.

Allgon makes the acquisition, which is planned to be completed in the fourth
quarter of this year, through buying shares of WSI from the four current owners
at a price equivalent to SEK 41 million. The purchase price will be paid partly
in cash of SEK 25 million, partly by a promissory note of SEK 11 million as well
as a directed share issue of SEK 5 million.

- Through this acquisition, we are putting the first piece of the puzzle in
establishing a new business area, Industrial IoT. WSI has an exciting business
that complements the offers from other companies within our group. We have
followed WSI for some time and are impressed by their success journey. We are
looking forward to working with the founders and their team to develop the
business further, says Johan Hårdén, CEO of Allgon AB.

- We can see that our major international customers as well as the smaller
clients become more and more dependent on collaborations with flexible
specialized companies to keep up with the ongoing global digitalization. WSI has
a sound knowledge and an extensive experience in offering clients a full
responsibility in the process from idea to final product within IoT, Virtual
Reality and advanced radio solutions. This agreement with Allgon puts WSI into a
larger context in which we can get further exchange on our continuous expansion
and growth, says Jan-Åke Lindqvist, CEO of Wireless System Integration Sweden
AB.

WSI has, based on turn-key costumer offering, a strong growth within IoT for
industrial applications. The company offers customers comprehensive solutions in
the development and industrialization of IoT applications and advanced radio
solutions. Their client portfolio ranges from small companies in an early stage
of product development to major international players in a wide variety of
industries. Homepage www.wsisweden.com

Contact:

Johan Hårdén
Allgon AB
Tel.0733 859219
E-mail: johan.harden@allgon.se

Jan-Åke Lindqvist
Wireless System Integration Sweden AB
Tel. 070-555 49 17
E-mail: jaln@wsi.nu