The home alarm company Sensor Alarm plans to carry out a reverse acquisition of Norrlands Online.

Sensor Alarm and Norrlands Online have entered into a non-binding letter of intent. In this deal, Sensor would sell its existing business to a company owned by, among others, certain board members and senior executives of the company, according to a press release.

"Sensor Alarm has for a long time had a tough economic situation after the aftermath of Covid combined with inflation, which has negatively affected sales and operations. The prevailing market situation over the last 2 years has also made it difficult for the company to secure financing to pay debts and cope with expansion going forward. In order to manage the company's difficult situation and pay off the company's debts while giving shareholders an opportunity to be part of a new journey, the solution of selling off the existing business has been worked out as an alternative to ceasing operations," writes Sensor Alarm.

Norrlands Online is a Swedish public limited company focusing on broadband services, primarily in Norrland, but also in the rest of Sweden.

Norrlands Online plans to finance the business to a positive cash flow with capital from existing and external investors and a guaranteed rights issue totaling approximately SEK 7 million.

Sensor Alarm is planning an extraordinary general meeting around August 23 where shareholders will be asked to decide on the reverse acquisition and the sale of the existing business.

"Early revenues and a plan for rapid profitability in Norrlands Online's operations indicate that Sensor Alarm's shareholders can take part in an interesting journey in innovative broadband deployment," says Jonas Liedberg, CEO of Sensor Alarm.

The plan is that the merged company will continue to be listed on Spotlight.