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Shelly Group acquires LOQED assets and expands into growth segment smart locks

Sofia / Munich, 11 July 2024 – Shelly Group AD (Ticker SLYG / ISIN: BG1100003166) (“Shelly Group”), a provider of IoT and smart building solutions based in Sofia, Bulgaria, is strategically broadening its product categories and expanding into the growth segment of intelligent door locks (smart locks). To this end, the Company has acquired the material assets, including the technology (intellectual property, IP) and the inventory, of the Dutch company LOQED B.V., which is currently undergoing insolvency proceedings. The deal also includes direct access to the contract manufacturer’s plant in the People’s Republic of China and to the suppliers of the primary products, so that both the immediate takeover of production and its future optimization can take place seamlessly. The purchase price payment is in the region of EUR 0.15 million and will be made in cash. Shelly expects significant revenue and earnings contributions from the sale of smart locks from 2025.

Shelly will integrate LOQED into the Shelly product portfolio and Shelly Cloud solutions as quickly as possible in order to provide the Shelly user experience that customers cherish. For customers to continue using their existing LOQED locks without restriction, Shelly will initially continue to operate the LOQED platform and subsequently embed it into Shelly Cloud solutions as part of the upcoming integration.

With its expansion into the smart locks product category, Shelly is tapping into a globally growing segment which, according to market studies, is set to grow by an average of 15.4% annually to up to USD 5.8 billion by 2029. Growth drivers besides the use in private households are in particular applications for companies and public institutions for the secure and simple management of various physical entrances via remote access as well as the ability to monitor the security of premises. For example, various hotels are planning to introduce Bluetooth or WiFi-enabled locks instead of RFID locks accessible via smart cards in order to improve security, customer service, and the quality of stay in their premises. In addition, smart locks offer high growth potential for use in companies and organizations, as many people need access to the same facility.

Wolfgang Kirsch, Co-CEO of the Shelly Group, explained: “By acquiring LOQED’s technology and inventory, we are intelligently tapping into a sustainable growth market. The double-digit growth rates in this market segment are an excellent fit for Shelly. In addition, we will be able to generate revenue from the sale of existing products from day one while we continue to develop the technology and realize efficiency potential. We are confident that with LOQED as part of Shelly, we will be able to generate significant revenue and earnings contributions as soon as 2025. True to our ‘value for money’ approach, the cost benefits will of course also be reflected in the prices for our customers.”

LOQED smart locks are characterized by high-quality and robust stainless-steel hardware and are compatible with a variety of home automation systems. The door is opened via a smartphone using Bluetooth or alternatively by entering a code manually. The locks have numerous intelligent functions such as time-controlled opening and closing or access notifications. Guest links can be sent to friends and guests to open and close the door via their browser. LOQED locks are certified in accordance with EN 1303, EN 15684, and SKG-IKOB-Opleidingen, the leading test institute for the construction sector in the Netherlands and Belgium, as particularly robust and burglar-resistant (3 stars).

Dimitar Dimitrov, Co-CEO of Shelly Group, added: “LOQED’s smart locks fit perfectly with our approach of seamless integration and interoperability of hardware and software. We intend to add further APIs to the locks for a wide range of providers and use cases, offering even more added value in smart building solutions. We will also take cost and energy efficiency into account and make smart locks accessible to an even wider range of users. Based on our experience with the existing product categories, we also want to set new standards of excellence for end users and professional users in this segment.”