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Crayon announces its intention to launch an Initial Public Offering and apply for a listing on the Oslo Stock Exchange

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Crayon announces its intention to launch an Initial Public
Offering and apply for a listing on the Oslo Stock Exchange

Oslo, 11 October 2017: Crayon Group Holding ASA* (together
with its subsidiaries “Crayon” or the “Company”) today
announces its intention to launch an Initial Public Offering
(the “IPO”) and to apply for a listing on the Oslo Stock
Exchange.

Crayon is a leading software license lifecycle management
company. The Company is a strategic partner for the world’s
leading software developers (e.g. Microsoft, Amazon and IBM)
and advises its clients on optimising software spending
through the software lifecycle. This includes planning,
purchasing, deployment and compliance of software, resale of
software and assisting clients with selective deployment of
modern IT solutions. Crayon is experiencing strong demand
for its services on the back of the evolving digital
transformation into the cloud, the accompanied increased IT
complexity, and IT spending becoming a larger share of
companies cost base.

Crayon was founded in 2002 and listed on Oslo Børs following
the merger with Inmeta in 2011 until completion of the
voluntary offer for the shares in the Company by Norvestor
VI L.P. (“Norvestor”) in 2012. After the delisting, Crayon
has focused on international expansion. From 2014-2016
Crayon invested approximately NOK 280 million in expanding
globally and developing its IP solutions, and now the
Company is set to harvest the benefits as expansion markets
matures. At the same time, EBITDA from the core markets in
the Nordics is at record high. The Company is now present
across 21 countries worldwide with headquarters in Oslo,
Norway. As of 30 June 2017, Crayon had 1,079 employees.

Crayon has grown revenues from NOK 2,047 million in 2012 to
NOK 6,015 million in 2016, representing an annual growth
rate (CAGR) of 31% over the period. The strong momentum has
continued into H1 2017 with Crayon growing revenues by 18%
compared to H1 2016. Crayon reported gross profit of NOK
1,128 million and Adjusted EBITDA** of NOK 105 million in
2016. Gross profit and Adjusted EBITDA** last twelve months
as of Q2 2017 was NOK 1,175 million and NOK 134 million,
respectively.

Company Highlights

– Operating in an attractive market with digitalisation
accelerating software growth and complexity
– Uniquely positioned to aid customers reduce costs and
optimise software ROI
– Resilient business model with high share of recurring
revenue and loyal customer base
– Ready to harvest on recent successful international
expansion

Torgrim Takle, CEO of Crayon, commented:

“I am very proud of the strong growth the Crayon team has
demonstrated over a long period of time and the successful
development from being a Norwegian licensing provider to
having global ambitions and becoming a valued go-to-market
partner for global software vendors. I am also very excited
about the future of Crayon – we have invested in global
expansion, and we are now set to reap the benefits as the
expansion markets mature. We look forward to offering new
shareholders the opportunity to invest in Crayon’s growth.”

Henning Vold, Partner in Norvestor Equity AS and Chairman of
the Board of Crayon, commented:

“Norvestor sponsored the delisting of Crayon in 2012 to back
an ambitious growth plan. From a Nordic base the Company has
established a global position in 21 countries and is an
important partner for the large software vendors. The IPO is
a natural next step in the Company’s development and marks
the beginning of a new phase in which the Company is set to
harvest from investments made. The IPO will help the Company
to secure a broader, long-term shareholder base, and we look
forward to inviting new shareholders to join Norvestor as
owners. In addition, the listing will provide access to the
capital markets and enhance Crayon’s visibility among
potential partners.”