Nasdaq Helsinki Ltd: Inside information: Matrix42, a portfolio company of Corten Capital, acting through European 24 Bidco Oy, announces a voluntary recommended public cash tender offer for all the outstanding shares and stock options in Efecte Plc

European 24 Bidco Oy / Efecte Plc  INSIDE INFORMATION  January 18, 2024 at
8:30 a.m. EET 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR
SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER OFFER WOULD BE
PROHIBITED BY APPLICABLE LAW. SHAREHOLDERS AND HOLDERS OF STOCK OPTIONS IN THE
UNITED STATES SHOULD ALSO REFER TO THE SECTION TITLED "INFORMATION FOR
SHAREHOLDERS AND HOLDERS OF STOCK OPTIONS OF EFECTE IN THE UNITED STATES" AT
THE END OF THIS RELEASE. 



Inside information: Matrix42, a portfolio company of Corten Capital, acting
through European 24 Bidco Oy, announces a voluntary recommended public cash
tender offer for all the outstanding shares and stock options in Efecte Plc 



European 24 Bidco Oy (the "Offeror"), a private limited liability company
incorporated and existing under the laws of Finland, that is directly wholly
owned by Matrix42 Holding GmbH ("Matrix42"), a corporation incorporated and
existing under the laws of Germany, hereby announces a voluntary recommended
public cash tender offer for all the issued and outstanding shares in Efecte
Plc ("Efecte" or the "Company") that are not held by Efecte or its subsidiaries
(the "Shares" or, individually, a "Share") and for all the issued and
outstanding stock options in Efecte that are not held by Efecte or its
subsidiaries (the "Stock Options" or, individually, a "Stock Option") (the
"Tender Offer"). The shareholders of Efecte (other than Efecte or its
subsidiaries) will be offered a cash consideration of EUR 15.00 for each Share
validly tendered in the Tender Offer (the "Share Offer Price"). The holders of
the Stock Options will be offered a cash consideration for each Stock Option
validly tendered as described in the section "The Tender Offer in Brief" below.
The Board of Directors of Efecte has unanimously decided to recommend that the
shareholders of Efecte and the holders of the Stock Options accept the Tender
Offer. The shares in Efecte are admitted to trading on First North Growth
Market Finland maintained by Nasdaq Helsinki Ltd ("Nasdaq First North"). 



Matrix42 is the holding entity of the Matrix42 Group headquartered in
Frankfurt, which provides innovative software solutions for digital workspace
management. Matrix42 is owned by funds advised by Corten Advisors UK LLP
("Corten Capital"), a private equity firm, incorporated and existing under the
laws of the United Kingdom. Corten Capital partners with entrepreneurial
management teams to build market leading B2B software, services and information
companies across Europe and North America. 



KEY HIGHLIGHTS AND SUMMARY OF THE TENDER OFFER



 -- On January 18, 2024, the Offeror and Efecte entered into a combination
   agreement (the "Combination Agreement") pursuant to which the Offeror will
   make the Tender Offer for all of the Shares and Stock Options.

 -- The Share Offer Price under the Tender Offer is EUR 15.00 in cash for each
   Share validly tendered in the Tender Offer, subject to any adjustments as
   set out in the section "The Tender Offer in Brief" below.

 -- The holders of Stock Options will be offered a cash consideration for each
   Stock Option validly tendered as described in the section "The Tender Offer
   in Brief" below.

 -- The Share Offer Price represents a premium of approximately 90.8 percent
   compared to the closing price (EUR 7.86) of the Share on Nasdaq First North
   on January 17, 2024, the last trading day immediately preceding the
   announcement of the Tender Offer, and a premium of approximately 96.3
   percent compared to the three-month volume-weighted average trading price
   (EUR 7.64) of the Share on Nasdaq First North

immediately preceding the announcement of the Tender Offer.

 -- The Tender Offer values Efecte's total equity at approximately EUR 100
   million (disregarding the 5,882 shares held in treasury by Efecte).

 -- The Board of Directors of Efecte has unanimously decided to recommend that
   the shareholders of Efecte and the holders of the Stock Options accept the
   Tender Offer.

 -- First Fellow Oy, Oy Fincorp Ab, Markku Montonen, Chair of Efecte's Board of
   Directors Pertti Ervi, member of Efecte's Board of Directors Turkka
   Keskinen and all members of the Leadership Team of Efecte, including CEO
   Niilo Fredrikson, together representing approximately 26.4 percent of all
   Shares and votes in Efecte and 63.9 percent of the Stock Options, have
   irrevocably undertaken to accept the Tender Offer and these irrevocable
   undertakings will remain in force regardless of any superior competing
   offers, subject to conditions described under section "Support by certain
   shareholders of Efecte" below.

In addition, Aktia Nordic Micro Cap Fund, Ilmarinen Mutual Pension
   Insurance Company and Alcur Fonder AB, together representing approximately
   15.8 percent of all Shares and votes in Efecte, have irrevocably undertaken
   to accept the Tender Offer. These irrevocable undertakings will terminate
   in case the Offeror announces that it will not pursue or complete (or will
   cancel) the Tender Offer, or in the event that a competing tender offer is
   announced by a third party with a consideration of at least 10 percent
   higher than the Share Offer Price and the Offeror does not within seven
   business days match or exceed the consideration offered in such competing
   tender offer.

All irrevocable undertakings represent in aggregate approximately 44.1
   percent of the Shares on a fully diluted basis (assuming full conversion of
   the Stock Options into shares in Efecte).

 -- The Offeror has secured the required equity and debt financing to finance
   the Tender Offer at completion in accordance with its terms, and subsequent
   compulsory redemption proceedings, if any, in accordance with the Finnish
   Companies Act (624/2006, as amended, the "Finnish Companies Act"),

and the possible payment of a termination fee by the Offeror.

 -- The Offeror expects to publish a tender offer document (the "Tender Offer
   Document") with detailed information on the Tender Offer on or about
   January 29, 2024. The offer period under the Tender Offer is expected to
   commence on or about January 30, 2024, and to expire on or about March 5,
   2024, unless the Offeror extends the offer period in order to satisfy the
   conditions to completion of the Tender Offer, including, among others, the
   receipt of all necessary regulatory approvals (or expiry of regulatory
   waiting periods, as the case may be). The Tender Offer is currently
   expected to be completed at the end of the first

quarter or at the beginning of the second quarter of 2024.

 -- The completion of the Tender Offer is subject to the satisfaction or waiver
   by the Offeror of certain customary conditions on or prior to the Offeror's
   announcement of the final results of the Tender Offer including, among
   others, that approvals by all necessary regulatory authorities have been
   received (or, where applicable, the waiting periods have expired) and the
   Offeror having gained control to more than 90 percent of the Shares and
   votes in Efecte on a fully diluted basis

calculated in accordance with Chapter 18, Section 1 of the Finnish
   Companies Act.




Commenting on the Tender Offer, Al Monserrat, Chairman of the Supervisory Board
of Matrix42: 



"Efecte is a highly complementary acquisition for Matrix42. Organizations are
under continuous pressure to deliver a great employee experience by rapidly
identifying, responding to, and resolving employee requests and issues across
all areas. Both companies share the same mission of achieving this through
digitization and automation. We look forward to working with Niilo Fredrikson
and his talented team at Efecte to create the leading European provider of
service management software." 



Commenting on the Tender Offer, Thomas Fetten, CEO of Matrix42



"The combination of Matrix42 and Efecte creates a leading pan-European provider
of service management software of scale with more than 4,750 customers. These
customers will benefit significantly from access to enhanced resources for
technology and product innovation. We look forward to working with Niilo and
the Efecte team to deliver on our shared vision." 



Commenting on the Tender Offer, Joseph Schull, Managing Partner of Corten
Capital: 



"We are delighted to support Matrix42 in its tender offer for Efecte. We have
great respect for Efecte, which has a well-deserved reputation for the quality
of its product offerings, its strong customer focus and its growth ambition.
The combination of Efecte with Matrix42 will significantly accelerate the
ambition of both companies to build a European service management champion." 



Commenting on the Tender Offer, Pertti Ervi, Chairman of the Board of Directors
of Efecte: 



"Efecte's Board of Directors has constantly evaluated the company's future
options from the point of view of our shareholders, employees and customers.
Until now, our primary option has been to continue the independent development
of the company to become a leading European player in our market. However, with
Matrix42 and Corten, we saw an opportunity to accelerate the achievement of
this goal significantly. The combined entity would help us build a stronger and
broader offer for our customers. Matrix42 and Corten have the financial muscle
and highly skilled team to make the combination a real success. For our
employees, this means more opportunities and a good and immediate return on
their investment for our shareholders." 



Commenting on the Tender Offer, Niilo Fredrikson, Chief Executive Officer of
Efecte: 



"At Efecte, we help people to digitalize and automate their work and are on a
journey to build the European leader in service management software. Customers
across Europe appreciate our flexible platform that is a joy to use, fits your
budget, features industry-leading AI and meets the European customers' needs
for privacy and security. Our unique people and culture have enabled consistent
growth over the years. Partnering with Matrix42 is a very exciting opportunity
to accelerate our joint ambition to build the European leader in our space. I
look forward to making it happen and realizing all the benefits for our
customers, partners and employees." 



ABOUT EUROPEAN 24 BIDCO OY, MATRIX42 AND CORTEN CAPITAL



European 24 Bidco Oy is a private limited liability company incorporated and
existing under the laws of Finland that is directly wholly owned by Matrix42
Holding GmbH. European 24 Bidco Oy has not previously conducted, and currently
does not conduct, any business. European 24 Bidco Oy was formed to make the
Tender Offer and its sole business purpose is to make the Tender Offer and to
operate as the parent company of Efecte. 



Matrix42, a corporation incorporated and existing under the laws of Germany, is
the holding entity of the Matrix42 Group headquartered in Frankfurt, which
provides innovative software solutions for digital workspace experience
management, unified endpoint management, and enterprise service management. The
company's products and services empower organizations to improve IT efficiency,
enhance end-user productivity, and enable digital transformation. With over 25
years of experience and a customer base spanning across various industries and
regions, Matrix42 is trusted by enterprises worldwide for its reliable and
comprehensive solutions. Matrix42 is a portfolio company of and is controlled
by funds advised by Corten Capital. For further information, please visit
www.matrix42.com. 



Corten Capital is a specialist investment firm that partners with
entrepreneurial management teams to build market leading, B2B software,
services and information companies across Europe and North America. Corten
Capital is backed by an exceptional group of university endowments, charitable
foundations and family offices from North America, Europe, and Asia, who share
its philosophy of investing for long term value creation through growth and
innovation. Corten Advisors UK LLP is authorised and regulated by the Financial
Conduct Authority in the UK. For further information, please visit
www.cortencapital.com. 



ABOUT EFECTE



Efecte is a public limited liability company incorporated under the laws of
Finland with its shares admitted to trading on Nasdaq First North. Efecte helps
people digitalize and automate their work. Customers across Europe leverage
Efecte's cloud service to operate with greater agility, to improve the
experience of end-users, and to save costs. The use cases for Efecte's
solutions range from IT service management and ticketing to improving employee
experiences, business workflows, and customer service. Efecte is the European
alternative to the global goliaths in Efecte's space. Efecte's headquarters is
located in Finland and Efecte has regional hubs in Germany, Poland, Spain and
Sweden. 



BACKGROUND AND STRATEGIC RATIONALE



Corten Capital acquired Matrix42 in July 2021 as a leading DACH-focused
provider of a service management software suite, with the ambition to build a
European service management champion with a broad set of solutions to automate
and streamline complex workflows for customers within and beyond the IT
function. With Corten Capital's support, since 2021 Matrix42 has continued its
strong organic growth across Germany, Austria and Switzerland as well as in
France, Italy and other EMEA markets. Service management is a large,
high-growth and fragmented market and Matrix42 is well positioned to continue
to grow both organically and through strategic acquisitions. 



Matrix42 views Efecte as a highly complementary acquisition due to its strong
reputation, its leading position in the Nordic markets, its world-class team of
service management professionals and its shared vision to build a European
service management champion. Efecte has built a market-leading position in
Finland since its foundation in 1998, and in recent years it has developed a
growing commercial footprint in Sweden, Germany and Poland. Together, Matrix42
and Efecte will constitute a scaled European player in the service management
market, with 550 employees serving over 4,750 customers across 30 countries. 



Both Matrix42 and Efecte serve midmarket and enterprise customers requiring
service management solutions with rich and extensive functionality adapted to
their organizational needs. The two firms have an aligned strategy and
complementary products and customers, and their combination will provide an
enlarged market presence and enhanced resources for technology and product
innovation. Matrix42 and Efecte will both continue to deliver their existing
solutions to their respective customers, and both remain committed to their
innovation roadmaps for their respective product offerings. The combination
will enable Matrix42 and Efecte and their respective customers to benefit from
complementary product capabilities over time. Together, Matrix42 and Efecte
will have increased scale, talent and capital to pursue and accelerate their
growth ambition. 



Matrix42 seeks to acquire all Shares and Stock Options in Efecte and is making
a highly compelling offer to Efecte's shareholders and holders of Stock
Options. The Tender Offer enables the Company's shareholders and holders of
Stock Options to realize their held securities in Efecte at an attractive
premium of 90.8% compared to the closing price (EUR 7.86) of the Share on
Nasdaq First North on January 17, 2024, the last trading day immediately
preceding the announcement of the Tender Offer. 



The completion of the Tender Offer is not expected to have any immediate
material effects on the operations, the assets, the position of the management
or employees, or the location of the offices of Efecte. However, as is
customary, the Offeror intends to change the composition of the Board of
Directors of Efecte after the completion of the Tender Offer. 



THE TENDER OFFER IN BRIEF



The Offeror and Efecte have on January 18, 2024, entered into the Combination
Agreement pursuant to which the Offeror will make the Tender Offer. A summary
of the Combination Agreement is provided below under section "The Combination
Agreement". 



The Offeror and Efecte have undertaken to comply with the Helsinki Takeover
Code issued by the Finnish Securities Market Association (the "Helsinki
Takeover Code"). 



As at the date of this announcement, Efecte has 6,452,424 issued shares, of
which 6,446,542 are outstanding Shares and 5,882 of which are held in treasury,
and a total of 610,720 outstanding Stock Options, comprising of 77,825 Stock
Options 2018B, 103,750 Stock Options 2018C, 118,650 Stock Options 2021A, 24,000
Stock Options 2021A1, 128,145 Stock Options 2021B, 19,500 Stock Options 2021B1
and 138,850 Stock Options 2021C. As at the date of this announcement, neither
the Offeror nor Matrix42 nor Corten Capital hold any Shares nor Stock Options. 



The Offeror, Matrix42 and Corten Capital, each respectively, reserve the right
to acquire, or enter into arrangements to acquire, Shares and Stock Options
before, during and/or after the offer period (including any extension thereof
and any subsequent offer period) outside the Tender Offer in public trading on
Nasdaq First North or otherwise. 



The Share Offer Price and the Option Offer Price



The Share Offer Price is EUR 15.00 in cash for each Share validly tendered in
the Tender Offer, subject to any adjustments as set out below. 



The Share Offer Price represents a premium of approximately:



 -- 90.8 percent compared to EUR 7.86, i.e. the closing price of the Efecte
   share on Nasdaq First North on January 17, 2024, the last trading day
   immediately preceding the announcement of the Tender Offer;

 -- 96.3 percent compared to EUR 7.64, i.e. the three-month volume-weighted
   average trading price of the Efecte share on Nasdaq First North immediately
   preceding the announcement of the Tender Offer; and

 -- 83.4 percent compared to EUR 8.18, i.e. the six-month volume-weighted
   average trading price of the Efecte share on Nasdaq First North immediately
   preceding the announcement of the Tender Offer.




The price offered for each Stock Option validly tendered in the Tender Offer is
EUR 10.00 in cash for each outstanding Stock Option 2018B (the "Option 2018B
Offer Price"), EUR 10.61 in cash for each outstanding Stock Option 2018C (the
"Option 2018C Offer Price"), EUR 0.01 in cash for each outstanding Stock Option
2021A (the "Option 2021A Offer Price"), EUR 0.01 in cash for each outstanding
Stock Option 2021A1 (the "Option 2021A1 Offer Price"), EUR 3.77 in cash for
each outstanding Stock Option 2021B (the "Option 2021B Offer Price"), EUR 3.77
in cash for each outstanding Stock Option 2021B1 (the "Option 2021B1 Offer
Price") and EUR 4.69 in cash for each outstanding Stock Option 2021C (the
"Option 2021C Offer Price", and together with the Option 2018B Offer Price,
Option 2018C Offer Price, Option 2021A Offer Price, Option 2021A1 Offer Price,
Option 2021B Offer Price and Option 2021B1 Offer Price, the "Option Offer
Price"), subject to any adjustments as set out below. 



The Share Offer Price has been determined based on 6,446,542 issued and
outstanding Shares. The Option 2018B Offer Price has been determined based on
77,825 Stock Options 2018B issued and outstanding, the Option 2018C Offer Price
has been determined based on 103,750 Stock Options 2018C issued and
outstanding, the Option 2021A Offer Price has been determined based on 118,650
Stock Options 2021A issued and outstanding, the Option 2021A1 Offer Price has
been determined based on 24,000 Stock Options 2021A1 issued and outstanding,
the Option 2021B Offer Price has been determined based on 128,145 Stock Options
2021B issued and outstanding, the Option 2021B1 Offer Price has been determined
based on 19,500 Stock Options 2021B1 issued and outstanding and the Option
2021C Offer Price has been determined based on 138,850 Stock Options 2021C
issued and outstanding. 



Should the Company change the number of the Shares that are issued and
outstanding on the date of the Combination Agreement as a result of a new share
issue, reclassification, stock split (including a reverse split) or any other
similar transaction with dilutive effect other than as agreed to be permitted
in relation to the Company's existing share-based incentive schemes, or should
the Company distribute a dividend or otherwise distribute funds or any other
assets to its shareholders, or if a record date with respect to any of the
foregoing occurs prior to any of the settlements of the completion trades
(whether after the expiry of the offer period or any subsequent offer period)
the Share Offer Price and the Option Offer Price payable by the Offeror will be
reduced accordingly on a euro-for-euro basis. 



The Offer Period



The offer period under the Tender Offer is expected to commence on or about
January 30, 2024, and to expire on or about March 5, 2024. The Offeror reserves
the right to extend the offer period from time to time in accordance with, and
subject to, the terms and conditions of the Tender Offer and applicable laws
and regulations, in order to satisfy the conditions to completion of the Tender
Offer, including, among others, the receipt of all necessary regulatory
approvals, permits, clearances and consents, including without limitation
approvals required under applicable foreign direct investment laws (or, where
applicable, the expiry of relevant waiting periods) required under applicable
regulatory laws in any jurisdiction for the completion of the Tender Offer. The
Tender Offer is currently expected to be completed at the end of the first
quarter or at the beginning of the second quarter of 2024. 



The detailed terms and conditions of the Tender Offer as well as instructions
on how to accept the Tender Offer will be included in the Tender Offer
Document, which the Offeror expects to publish on or about January 29, 2024. 



Recommendation by the Board of Directors of Efecte



The Board of Directors of Efecte has unanimously decided to recommend that the
shareholders of Efecte and the holders of Stock Options accept the Tender
Offer. The Board of Directors will issue its statement on the Tender Offer
before the commencement of the offer period, and it will be appended to the
Tender Offer Document. The Board of Directors of Efecte received an opinion
(the "Opinion"), dated January 18, 2024, of Efecte's financial adviser,
Carnegie Investment Bank AB, Finland Branch, to the effect that, as of the date
of the Opinion, the Share Offer Price to be paid to the holders of Shares
pursuant to the Tender Offer was fair from a financial point of view to such
holders of Shares, which opinion was based upon and subject to the assumptions
made, procedures followed, matters considered and limitations and
qualifications on the review undertaken as more fully described in such
opinion. The Opinion was provided for the use and benefit of the Board of
Directors of Efecte and does not constitute a recommendation as to how any
holders of Shares should act in connection with the Tender Offer or any related
matter. The complete Opinion will be attached to the statement of the Board of
Directors of Efecte. 



Support by certain shareholders of Efecte



First Fellow Oy, Oy Fincorp Ab, Markku Montonen, Chair of Efecte's Board of
Directors Pertti Ervi, member of Efecte's Board of Directors Turkka Keskinen
and all members of the Leadership Team of Efecte, including CEO Niilo
Fredrikson, together representing approximately 26.4 percent of all Shares and
votes in Efecte and 63.9 percent of the Stock Options, have irrevocably
undertaken to accept the Tender Offer. These irrevocable undertakings will
remain in force regardless of any superior competing offers and will terminate
in case the Offeror announces that it will not pursue or complete (or will
cancel) the Tender Offer or if the Offeror announces that it will waive the
acceptance threshold of more than 90 percent of the Shares in such a manner
that the Tender Offer could be completed at an acceptance threshold of less
than two thirds of the Shares or that it will lower the acceptance threshold of
the Tender Offer to less than two thirds of the Shares. 



In addition, Aktia Nordic Micro Cap Fund, Ilmarinen Mutual Pension Insurance
Company and Alcur Fonder AB, together representing approximately 15.8 percent
of all Shares and votes in Efecte, have irrevocably undertaken to accept the
Tender Offer. These irrevocable undertakings will terminate in case the Offeror
announces that it will not pursue or complete (or will cancel) the Tender
Offer, or in the event that a competing tender offer is announced by a third
party with a consideration of at least 10 percent higher than the Share Offer
Price and the Offeror does not within seven business days match or exceed the
consideration offered in such competing tender offer. 



All irrevocable undertakings represent in aggregate approximately 44.1 percent
of the Shares on a fully diluted basis (assuming full conversion of the Stock
Options into shares in Efecte). 



Conditions to Completion of the Tender Offer



The obligation of the Offeror to accept for payment the validly tendered Shares
and Stock Options, which have not been withdrawn in accordance with the terms
and conditions of the Tender Offer, and to complete the Tender Offer shall be
subject to the fulfilment or, to the extent permitted by applicable law, waiver
by the Offeror of the following conditions (jointly the "Closing Conditions")
on or prior to the date of the Offeror's announcement of the final result of
the Tender Offer in accordance with Chapter 11, Section 18 of the Finnish
Securities Markets Act (date of such announcement of the final result, the
"Result Announcement Date"): 



 1. the Tender Offer has been validly accepted with respect to Shares
   representing, together with any other Shares otherwise acquired by the
   Offeror prior to or during the offer period, more than ninety (90) percent
   of the Shares and voting rights in the Company on a fully diluted basis
   calculated in accordance with Chapter 18, Section 1 of the Finnish
   Companies Act;

 2. the receipt of all necessary regulatory approvals, permits, clearances and
   consents, including without limitation approvals required under applicable
   foreign direct investment laws, competition clearances (or, where
   applicable, the expiry of relevant waiting periods) required under
   applicable competition laws or other regulatory laws in any jurisdiction
   for the completion of the Tender Offer, and that any conditions set out in
   such approvals, permits, clearances or consents, including, but not limited
   to, any requirements for the disposal of any assets of the Offeror or the
   Company or any reorganization of the business of the Offeror or the
   Company, are reasonably acceptable to the Offeror in that they are not
   materially adverse to the Offeror or the Company in view of the Tender
   Offer and have been satisfied or complied with to the extent necessary;

 3. no material adverse change has occurred on or after the date of the
   Combination Agreement;

 4. the Offeror not, after the date of the Combination Agreement, having
   received information that constitutes a material adverse change;

 5. no information made public by the Company or disclosed by the Company to
   the Offeror being materially inaccurate, incomplete, or misleading, and the
   Company not having failed to make public any information that should have
   been made public by it under applicable laws, including the rules of Nasdaq
   First North, provided that, in each case, the information made public,
   disclosed or not disclosed or the failure to disclose information
   constitutes a material adverse change;

 6. no legislation or other regulation has been issued and no court or
   regulatory authority of competent jurisdiction has given a decision or
   issued any regulatory action that would wholly or in any material part
   prevent, postpone or frustrate the completion of the Tender Offer;

 7. the Board of Directors of the Company having issued its unanimous
   recommendation that the holders of the Shares and the holders of the Stock
   Options accept the Tender Offer and tender their Shares and Stock Options
   in the Tender Offer and the recommendation remaining in full force and
   effect and has not been withdrawn, modified, cancelled, or amended
   (excluding, however, any technical modification or change of the
   recommendation required under applicable laws or the Helsinki Takeover Code
   as a result of a competing offer or otherwise so long as the recommendation
   to accept the Tender Offer is upheld);

 8. the Combination Agreement not having been terminated and remaining in force
   and no event having occurred that, with the passage of time, would give the
   Offeror the right to terminate the Combination Agreement; and

 9. the undertakings by the major shareholders and the management shareholders
   to accept the Tender Offer remaining in force in accordance with their
   terms.




The Closing Conditions set out herein are exhaustive. The Offeror shall only
invoke any of the Closing Conditions so as to cause the Tender Offer not to
proceed, to lapse or to be withdrawn if the circumstances which give rise to
the right to invoke the relevant Closing Condition have a significant meaning
to the Offeror in view of the Tender Offer, as referred to in the Regulations
and Guidelines 9/2013 issued by the Finnish Financial Supervisory Authority and
the Helsinki Takeover Code. If all Closing Conditions have been fulfilled or
the Offeror has waived the requirements for the fulfilment of all or some of
them no later than at the time of announcement of the final results of the
Tender Offer, the Offeror will consummate the Tender Offer in accordance with
its terms and conditions after the expiration of the offer period by purchasing
the Shares and Stock Options validly tendered in the Tender Offer and paying
the Share Offer Price and the Option Offer Price to the holders of Shares and
holders of Stock Options that have validly accepted the Tender Offer. 



Regulatory Approvals



The Offeror will, as soon as reasonably practicable, make all material and
customary submissions, notifications and filings (or draft notifications as
appropriate) required to obtain all necessary regulatory approvals, permits,
clearances and consents, including without limitation approvals required under
applicable foreign direct investment laws (or, where applicable, the expiry of
relevant waiting periods) required under applicable regulatory laws in any
jurisdiction for the completion of the Tender Offer. To the Offeror's
knowledge, the Offeror is not under any obligation to obtain any approval from
any regulatory authority for the completion of the Tender Offer other than an
approval from the Ministry of Economic Affairs and Employment of Finland. 



Based on currently available information, the Offeror expects to obtain
approval from the Ministry of Economic Affairs and Employment of Finland and to
complete the Tender Offer at the end of the first quarter or at the beginning
of the second quarter of 2024. The Offeror will use its reasonable best efforts
to obtain the regulatory approval. However, the length and outcome of the
regulatory clearance process is not within the control of the Offeror, and
there can be no assurances that clearance will be obtained within the estimated
timeframe, or at all. 



Financing



The Offeror has received an equity commitment, as evidenced in the equity
commitment letter from Corten Capital I, LP addressed to the Offeror and debt
commitments, as evidenced in a debt commitment letter from Golub Capital LLC on
behalf of certain of its affiliated, similarly managed and/or related funds and
addressed to the Offeror and its indirect parent company, Neo Midco S.à r.l.,
in each case, to finance the Tender Offer at completion and compulsory
redemption proceedings, if any. Golub Capital LLC's debt commitment to the
Offeror and its indirect parent company, Neo Midco S.à r.l., has been committed
on a customary European "certain funds" basis and the debt financing's
availability is subject only to the following limited conditions: (i) no event
of default relating to non-payment, breach of certain major undertakings, major
misrepresentation, cross default, certain insolvency proceedings (or certain
similar proceedings), unlawfulness or repudiation and rescission of certain
agreements, is continuing or would result from the drawdown; (ii) no event of
illegality in respect of the lenders or certain change of control events having
occurred; and (iii) the provision of certain customary documentary and
commercial conditions precedent each of which is satisfied, in a customary
form, or within the control of the Offeror. The Offeror's obligation to
complete the Tender Offer is not conditional upon availability of financing
(assuming that all the Closing Conditions of the Tender Offer are satisfied or
waived by the Offeror). 



Future plans concerning the Shares and the Stock Options



The Offeror intends to acquire all the Shares and Stock Options. If the
Offeror, as a result of the completion of the Tender Offer or otherwise,
acquires Shares representing more than 90 percent of all the outstanding Shares
and votes in the Company, then: 



 1. the Offeror will commence, as soon as reasonably practicable, compulsory
   redemption proceedings in accordance with the Finnish Companies Act for all
   the remaining Shares. Thereafter, the Offeror will apply for the shares in
   Efecte to be delisted from Nasdaq First North, as soon as permitted and
   reasonably practicable under the applicable laws and regulations and the
   rules of Nasdaq First North; and

 2. the Stock Options of the holders who have not accepted the Tender Offer
   will be transferred for redemption to the Offeror in accordance with the
   terms and conditions of the option programme 2018 and the option programme
   2021, respectively, at the Option Offer Price applicable to such Stock
   Option.




The Combination Agreement



The Combination Agreement between Efecte and the Offeror sets forth the
principal terms under which the Offeror will make the Tender Offer. 



Under the Combination Agreement, the Board of Directors of Efecte may, at any
time prior to the completion of the Tender Offer, withdraw, modify, cancel or
amend its recommendation and take actions contradictory to the recommendation,
including by way of deciding not to issue its recommendation for the
shareholders of Efecte and the holders of the Stock Options to accept the
Tender Offer, but only if the Board of Directors of Efecte determines in good
faith due to any event, condition, circumstance, development, occurrence,
change, effect or fact (the "Effect") occurring after the date of the
Combination Agreement or an Effect occurring prior to the date of the
Combination Agreement of which the Board of Directors of the Company was not
aware (having made, prior to the date of the Combination Agreement, reasonable
enquiries of the CEO and the Group Management Board) as at the date of the
Combination Agreement, after receiving written advice from its reputable
external legal counsel and financial advisor(s) and after consultation with the
Offeror, that such withdrawal, modification, cancellation or amendment of its
recommendation or contrary action is required for the Board of Directors of the
Company to comply with its mandatory fiduciary duties towards the holders of
the Shares under Finnish laws and regulations (the "Fiduciary Duties"). If such
an action by the Board of Directors of the Company is connected to a competing
offer or a written competing proposal that constitutes an approach of a serious
nature, which the Board of Directors of Efecte has determined in good faith to
constitute, when considered as a whole, a superior offer (both from financial
and deliverability points of view) to the Offeror's Tender Offer, the Board of
Directors of the Company may withdraw, modify, cancel or amend or take actions
contradictory to its recommendation, but only if the Board of Directors of the
Company has (i) complied with its obligations in the Combination Agreement to
not solicit competing transactions, (ii) notified the Offeror of the Company's
receipt of the competing offer or competing proposal with reasonably detailed
information about the competing offer or competing proposal (including the
identity of the competing offeror, pricing, and other material terms and
conditions, as well as any material revisions thereto), (iii) in good faith
provided the Offeror with an opportunity to negotiate with the Board of
Directors of the Company about matters arising from the competing offer or
competing proposal, and (iv) given the Offeror at least seven (7) business days
from the date of publishing the competing offer or from the date of the Offeror
having been informed in writing of a serious competing proposal ready to be
launched and of its material terms to enhance its Tender Offer as contemplated
by the Combination Agreement. 



The Company shall, and shall cause its subsidiaries and representatives to, (a)
not to, directly or indirectly, solicit, knowingly encourage, facilitate,
promote, participate in any negotiations, provide information with respect to
the Company to any person in connection with, or otherwise cooperate in any
manner with, any competing offer or inquiry or proposal for such offer or for
any other transaction, including without limitation any sale, spin-off or other
transfer of all or any material portion of the Company's assets or businesses,
whether through a public tender offer or by sale or transfer of assets, sale of
shares, reorganization or merger, transfer of employees in a hiring action by a
third party (other than the Offeror or its representatives) or otherwise, or
any other similar corporate transaction that could constitute or result in any
competing transaction or otherwise prevent, harm, delay or hinder the
completion of the Tender Offer, (b) cease and cause to be terminated any
possible discussions, negotiations or other activities related to any competing
proposal conducted by or on behalf of the Company prior the signing date of the
Combination Agreement, (c) not to, upon receipt of a competing proposal,
directly or indirectly, facilitate or promote the progress of such competing
proposal, unless such measures are required in order for the Board of Directors
of the Company to comply with its Fiduciary Duties (and only to the extent
necessary for the fulfillment of the Fiduciary Duties), and provided that the
Company complies with certain procedures about matters arising from such
competing proposal. 



The Combination Agreement further includes certain customary representations,
warranties and undertakings by both parties, such as conduct of Efecte's and
each of its subsidiaries' business in the ordinary course of business until the
earlier of the completion of the Tender Offer or the termination of the
Combination Agreement in accordance with its terms and use of reasonable best
efforts by the parties to do, or cause to be done, and to assist and cooperate
with the other party in doing, all things necessary or advisable to consummate
the Tender Offer and the transactions contemplated by the Combination
Agreement. 



The Combination Agreement may be terminated and the transactions contemplated
in the Combination Agreement abandoned by the Company or the Offeror in certain
circumstances, including, among others, if a final, non-appealable injunction
or other order issued by any court of competent jurisdiction or other final,
non-appealable legal restraint or prohibition preventing the consummation of
the Tender Offer has taken effect after the date of the Combination Agreement
and continues to be in effect or upon a material breach of any warranty or
undertaking given by the Company or the Offeror. 



If the Combination Agreement is terminated due to a competing offer or
competing proposal being completed, the Company has agreed to reimburse
expenses incurred by the Offeror up to the maximum amount of EUR 3,000,000 and
if the Combination Agreement is terminated due to a competing offer or
competing proposal that has not been completed, the Company has agreed to
reimburse expenses incurred by the Offeror up to the maximum amount of EUR
2,000,000. In addition, if the Combination Agreement is terminated due to a
material breach of any warranties or undertakings given by the Company, the
Company has agreed to reimburse expenses incurred by the Offeror up to the
maximum amount of EUR 300,000. If the Combination Agreement is terminated due
to certain reasons specified in the Combination Agreement, the Offeror has
agreed to reimburse expenses incurred by the Company up to the maximum amount
of EUR 300,000. 



ADVISERS



The Offeror has appointed Danske Bank A/S, Finland Branch as financial adviser
and arranger in connection with the Tender Offer and Roschier, Attorneys Ltd.
as legal adviser and Miltton Ltd as the communication adviser in connection
with the Tender Offer. Efecte has appointed Carnegie Investment Bank AB,
Finland Branch as financial adviser and Castrén & Snellman Attorneys Ltd as
legal adviser in connection with the Tender Offer. 



Investor and Media Press Conference:



Corten Capital and Efecte invite shareholders of Efecte and holders of Stock
Options, analysts and media representatives to attend a webcast briefing on the
Tender Offer, including a Q&A session, tomorrow, January 19, 2024, at 12:30
p.m. (EET). 



The presentation will be in English, and questions can be asked either in
English or Finnish. 



Link to webcast: https://bit.ly/47GSpw9



Participants may submit questions in writing during the event through a message
platform available in the webcast. 



Investor and Media enquiries:



For further information, please see the dedicated website at:
https://efecte.tenderoffer.fi 



Corten Capital (Miltton)



Jenny Kestilä

Tel. [phone]

[e-mail]



Efecte



Niilo Fredrikson

Tel. [phone]

[e-mail]



Certified Adviser of Efecte:

Evli Plc

Tel. [phone]



IMPORTANT INFORMATION



THIS RELEASE MAY NOT BE RELEASED OR OTHERWISE DISTRIBUTED, IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, IN OR INTO, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW
ZEALAND OR SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH THE TENDER OFFER
WOULD BE PROHIBITED BY APPLICABLE LAW. 



THIS RELEASE IS NOT A TENDER OFFER DOCUMENT AND AS SUCH DOES NOT CONSTITUTE AN
OFFER OR INVITATION TO MAKE A SALES OFFER. IN PARTICULAR, THIS RELEASE IS NOT
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES
DESCRIBED HEREIN, AND IS NOT AN EXTENSION OF THE TENDER OFFER, IN, AUSTRALIA,
CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA. INVESTORS SHALL ACCEPT
THE TENDER OFFER FOR THE SHARES AND STOCK OPTIONS ONLY ON THE BASIS OF THE
INFORMATION PROVIDED IN A TENDER OFFER DOCUMENT. OFFERS WILL NOT BE MADE
DIRECTLY OR INDIRECTLY IN ANY JURISDICTION WHERE EITHER AN OFFER OR
PARTICIPATION THEREIN IS PROHIBITED BY APPLICABLE LAW OR WHERE ANY TENDER OFFER
DOCUMENT OR REGISTRATION OR OTHER REQUIREMENTS WOULD APPLY IN ADDITION TO THOSE
UNDERTAKEN IN FINLAND. 



THE TENDER OFFER IS NOT BEING MADE DIRECTLY OR INDIRECTLY IN ANY JURISDICTION
WHERE PROHIBITED BY APPLICABLE LAW AND, WHEN PUBLISHED, THE TENDER OFFER
DOCUMENT AND RELATED ACCEPTANCE FORMS WILL NOT AND MAY NOT BE DISTRIBUTED,
FORWARDED OR TRANSMITTED INTO OR FROM ANY JURISDICTION WHERE PROHIBITED BY
APPLICABLE LAWS OR REGULATIONS. IN PARTICULAR, THE TENDER OFFER IS NOT BEING
MADE, DIRECTLY OR INDIRECTLY, IN OR INTO, OR BY USE OF THE POSTAL SERVICE OF,
OR BY ANY MEANS OR INSTRUMENTALITY (INCLUDING, WITHOUT LIMITATION, FACSIMILE
TRANSMISSION, TELEX, TELEPHONE OR THE INTERNET) OF INTERSTATE OR FOREIGN
COMMERCE OF, OR ANY FACILITIES OF A NATIONAL SECURITIES EXCHANGE OF, AUSTRALIA,
CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA. THE TENDER OFFER CANNOT
BE ACCEPTED, DIRECTLY OR INDIRECTLY, BY ANY SUCH USE, MEANS OR INSTRUMENTALITY
OR FROM WITHIN, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH
AFRICA AND ANY PURPORTED ACCEPTANCE OF THE TENDER OFFER RESULTING DIRECTLY OR
INDIRECTLY FROM A VIOLATION OF THESE RESTRICTIONS WILL BE INVALID. 



THIS RELEASE HAS BEEN PREPARED IN COMPLIANCE WITH FINNISH LAW, THE RULES OF
NASDAQ FIRST NORTH AND THE HELSINKI TAKEOVER CODE AND THE INFORMATION DISCLOSED
MAY NOT BE THE SAME AS THAT WHICH WOULD HAVE BEEN DISCLOSED IF THIS
ANNOUNCEMENT HAD BEEN PREPARED IN ACCORDANCE WITH THE LAWS OF JURISDICTIONS
OUTSIDE OF FINLAND. 



Information for shareholders and holders of Stock Options of Efecte in the
United States 



Shareholders and holders of Stock Options of Efecte in the United States are
advised that the Shares or Stock Options are not listed on a U.S. securities
exchange and that Efecte is not subject to the periodic reporting requirements
of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"),
and is not required to, and does not, file any reports with the U.S. Securities
and Exchange Commission (the "SEC") thereunder. 



The Tender Offer will be made for the Shares and Stock Options of Efecte, which
is domiciled in Finland, and is subject to Finnish disclosure and procedural
requirements. The Tender Offer is expected to be made in the United States
pursuant to Section 14(e) of, and Regulation 14E, under the Exchange Act,
subject to the exemption provided under Rule 14d-1(d) under the Exchange Act,
for a Tier II tender offer and otherwise in accordance with the disclosure and
procedural requirements of Finnish law, including with respect to the Tender
Offer timetable, settlement procedures, withdrawal, waiver of conditions and
timing of payments, which are different from those applicable under the tender
offer procedures and laws of the United States for domestic offers. In
particular, the financial information included in this announcement has been
prepared in accordance with applicable accounting standards in Finland, which
may not be comparable to the financial statements or financial information of
U.S. companies. The Tender Offer is made to Efecte's shareholders and holders
of Stock Options resident in the United States on the same terms and conditions
as those made to all other shareholders and holders of Stock Options of Efecte
to whom an offer is made. Any informational documents, including this
announcement, are being disseminated to U.S. shareholders and holders of Stock
Options on a basis comparable to the method that such documents are provided to
Efecte's other shareholders and holders of Stock Options. 



To the extent permissible under applicable law or regulations, the Offeror and
its affiliates or its brokers and its brokers' affiliates (acting as agents for
the Offeror or its affiliates, as applicable) may from time to time after the
date of this release and during the pendency of the Tender Offer, and other
than pursuant to the Tender Offer, directly or indirectly purchase or arrange
to purchase Shares or any securities that are convertible into, exchangeable
for or exercisable for Shares. These purchases may occur either in the open
market at prevailing prices or in private transactions at negotiated prices,
and the consideration in the Tender Offer must be increased to match any such
consideration paid outside the Tender Offer. To the extent information about
such purchases or arrangements to purchase is made public in Finland, such
information will be disclosed by means of a press release or other means
reasonably calculated to inform U.S. shareholders and holders of Stock Options
of Efecte of such information. In addition, the financial adviser to the
Offeror may also engage in ordinary course trading activities in securities of
Efecte, which may include purchases or arrangements to purchase such
securities. To the extent required in Finland, any information about such
purchases will be made public in Finland in the manner required by Finnish law. 



Neither the SEC nor any U.S. state securities commission has approved or
disapproved the Tender Offer, passed upon the merits or fairness of the Tender
Offer, or passed any comment upon the adequacy, accuracy or completeness of the
disclosure in relation to the Tender Offer. Any representation to the contrary
is a criminal offence in the United States. 



The receipt of cash pursuant to the Tender Offer by a U.S. holder of Shares or
Stock Options may be a taxable transaction for U.S. federal income tax purposes
and under applicable U.S. state and local, as well as foreign and other, tax
laws. Each holder of Shares or Stock Options is urged to consult its
independent professional advisers immediately regarding the tax and other
consequences of accepting the Tender Offer. 



To the extent the Tender Offer is subject to U.S. securities laws, those laws
only apply to U.S. holders of Shares or Stock Options, and will not give rise
to claims on the part of any other person. It may be difficult for Efecte's
shareholders or holders of Stock Options to enforce their rights and any claims
they may have arising under the U.S. federal securities laws, since the Offeror
and Efecte are located in non-U.S. jurisdictions and some or all of their
respective officers and directors may be residents of non-U.S. jurisdictions.
Efecte's shareholders or holders of Stock Options may not be able to sue the
Offeror or Efecte or their respective officers or directors in a non-U.S. court
for violations of the U.S. federal securities laws. It may be difficult to
compel the Offeror and Efecte and their respective affiliates to subject
themselves to a U.S. court's judgment. 



Forward-looking statements



This release contains statements that, to the extent they are not historical
facts, constitute "forward-looking statements". Forward-looking statements
include statements concerning plans, expectations, projections, objectives,
targets, goals, strategies, future events, future revenues or performance,
capital expenditures, financing needs, plans or intentions relating to
acquisitions, competitive strengths and weaknesses, plans or goals relating to
financial position, future operations and development, business strategy and
the trends in the industries and the political and legal environment and other
information that is not historical information. In some instances, they can be
identified by the use of forward-looking terminology, including the terms
"believes", "intends", "may", "will" or "should" or, in each case, their
negative or variations on comparable terminology. By their very nature,
forward-looking statements involve inherent risks, uncertainties and
assumptions, both general and specific, and risks exist that the predictions,
forecasts, projections and other forward-looking statements will not be
achieved. Given these risks, uncertainties and assumptions, investors are
cautioned not to place undue reliance on such forward-looking statements. Any
forward-looking statements contained herein speak only as at the date of this
release. 



Disclaimer



Danske Bank A/S is authorised under Danish banking law. It is subject to
supervision by the Danish Financial Supervisory Authority. Danske Bank A/S is a
private, limited liability company incorporated in Denmark with its head office
in Copenhagen where it is registered in the Danish Commercial Register under
number 61126228. 



Danske Bank A/S (acting via its Finland Branch) is acting as a financial
adviser to the Offeror and no other person in connection with these materials
or their contents. Danske Bank A/S will not be responsible to any person other
than the Offeror for providing any of the protections afforded to clients of
Danske Bank A/S, nor for providing any advice in relation to any matter
referred to in these materials. Without limiting a person's liability for
fraud, Danske Bank A/S, nor any of its affiliates nor any of its respective
directors, officers, representatives, employees, advisers or agents shall have
any liability to any other person (including, without limitation, any
recipient) in connection with the Tender Offer. 



Carnegie Investment Bank AB (publ), which is authorised and regulated by the
Swedish Financial Supervisory Authority (Finansinspektionen), is acting through
its Finland Branch ("Carnegie"). The Finland branch is authorised by the
Swedish Financial Supervisory Authority and subject to limited regulation by
the Finnish Financial Supervisory Authority (Finanssivalvonta). Carnegie is
acting exclusively for Efecte Plc and no one else in connection with the Tender
Offer and the matters set out in this announcement. Neither Carnegie nor its
affiliates, nor their respective partners, directors, officers, employees or
agents are responsible to anyone other than Efecte Plc for providing the
protections afforded to clients of Carnegie, or for giving advice in connection
with the Tender Offer or any matter or arrangement referred to in this
announcement.