mic — Reverse takeover of Pyramid Computer

mic (DB: M3B)

Last close As at 18/05/2024


0.06 (2.44%)

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Research: TMT

mic — Reverse takeover of Pyramid Computer

mic has announced the reverse takeover of Pyramid Computer, subject to full financing requirements. Pyramid is active in the high-growth market of digital kiosk solutions and expects to realise revenues of €55m in 2020 and EBIT of €4m. mic expects to surpass estimated market growth of >10% per year by adding selective acquisitions and entering new market segments.

Johan van den Hooven

Written by

Johan van den Hooven




Reverse takeover of Pyramid Computer


Scale research report - Update

12 November 2020



Market cap


Share price graph

Share details




Deutsche Börse Scale

Shares in issue


Net cash at 30 June 2020


Business description

mic has transformed itself from a holding company into an operational company via the reverse takeover of Pyramid Computer. Pyramid is a specialist in automation solutions in the retail, hospitality and food retail sectors. The two investments in Securize and Smarteag will be divested.


High-growth market of digital kiosk solutions.

Room for expansion via acquisitions.

Ample room to enter new market segments.


Transaction is subject to full financing requirements.

Competitive market segment.

Risk of dilution from additional financing.


Johan van den Hooven

+44 (0)20 3077 5700

mic has announced the reverse takeover of Pyramid Computer, subject to full financing requirements. Pyramid is active in the high-growth market of digital kiosk solutions and expects to realise revenues of €55m in 2020 and EBIT of €4m. mic expects to surpass estimated market growth of >10% per year by adding selective acquisitions and entering new market segments.

Entering digital point-of-sale segment

Pyramid Computer is a specialist in automation solutions in the retail, hospitality and food retail sectors, with customers such as McDonald’s, Adidas and Lidl. It develops and produces hardware solutions for self-administration applications during the checkout process at the point of sale. The company’s digital kiosk technology enables end-customers to complete orders independently using touch screens. Management expects revenues of €55m in 2020 and EBIT of €4.0m, with significant increases in both revenues and operating result subsequently.

Details of transaction

The purchase price is €44m and will be paid in two steps in cash (€20m) and mic shares in kind. First, 52% of Pyramid shares for €20m in cash and 2.2m mic shares to the owners of Pyramid. The cash will come from an ongoing rights issue (aimed at raising €6.7m, subject to sufficient investor demand), debt of €5m and a second cash capital increase of €10.9m in Q221 (assuming a mic share price of €3.00–3.50). Second, 48% of the remaining Pyramid shares will be paid by the issue of mic shares to the owners of Pyramid. After completion of the transaction, the number of shares outstanding is projected to be 18.9m (subject to market conditions) and the shareholders of Pyramid and future management will hold 47.2% of mic. mic plans to divest its current holdings, Securize and Smarteag, and management expects proceeds of €2.5–3.0m over the next 12–18 months.

High growth potential at relatively low valuation

The global market for digital kiosk solutions at the point of sale is expected to grow >10% per year on average over the next five to seven years, according to expectations of market researchers such as Mordor Intelligence, Allied Market Research and Market Analysis. mic aims to outgrow the market by adding selective acquisitions and by entering new market segments. Alster Research issued a report about mic's transformation and its estimates are shown below. If the anticipated growth trends are met, the company’s valuation seems rather modest.

Consensus estimates




Net profit
































Source: mic, Alster Research. Note: *Valuation multiples adjusted for Pyramid acquisition, and Alster Research estimates of shares outstanding and net cash.

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