edyoutec AB (NGM:EDYOU) announced the work to complete the acquisition of the German target company is ongoing at the time of writing. The target company specializes in the development of primarily digital educational apps. The apps have been downloaded over 18 million times and have around 200,000 organic downloads a month.

Since it was founded, the company has won several awards for its apps aimed at children aged 4-10. The company produces a subscription-based educational platform for children between 6 and 10 years of age. The platform is aimed at both parents and schools worldwide.

The app will already be launched in second quarter of 2024 on both Apple and Android devices. The app has shown particularly strong results from its beta launch, successfully transitioning users from its one-time organic downloads to signing up for a monthly subscription service. This conversion rate is around 18%.

By being able to channel organically acquired users, marketing costs are low, almost non-existent, per download. The subscription price is set at EUR 9.99 per month/user. Within 12 months, the target company is expected to have 50,000 monthly subscribers and within 24 months approximately 100,000 monthly subscribers.

The math then becomes the following; within 12 months the company must generate SEK 5.5 million per month and during the following 12 months SEK 11 million per month must be obtained. According to the target company's management, these figures are highly reasonable and to some extent low. One can compare the target company with eEducation Albert, which is listed on First North.

eEducation Albert can be assumed to have a turnover of approximately SEK 200 million per year and has primarily penetrated Sweden. The target company we intend to acquire, with its 18 million downloads and 200,000 monthly organic downloads, has its primary market in German-speaking countries. This math is the basis of intention to acquire the company.