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E-consulate, a dynamic and rapidly expanding software development and consulting firm in Sri Lanka, has grown into a powerhouse of nearly 100 developers with expertise spanning multiple advanced technologies, Robotics and Artificial Intelligence. Backed by strong profitability and sustained growth, the company has built a robust organizational framework tailored to serve the complex demands of international clients.

Through the acquisition, Frontwalker intends to create a customer offering that provides a great opportunity to directly access cost-effective, competent teams in Europe with a mix of Swedish and Sri Lankan resources in, among other things, artificial intelligence and SaaS-based business systems. Frontwalker has an aggressive growth plan for this business area for the coming years, and the Acquisition is a very important piece of the puzzle.

"This transaction marks the next phase in Frontwalker's new strategy, and I am very pleased to together with our management, being able to present this Sri Lankan investment, marking a strong beginning of Sri Lankan business presence in Sweden",  says Marcus Pettersson Berver, chairman of the board of directors of Frontwalker

"Partnering with Frontwalker AB (publ) turns Sweden's tech leadership into a global delivery edge, offering clients across Europe and beyond proximity, speed, and scale in one team. Combining Frontwalker's market access with E-consulate's cost-effective, high-performance squads, we will drive AI-enabled modernization and resilient digital products for world-class enterprises. This is not a bridge but a platform for Sweden and the world to share the best talent working as one. Our vision is clear: we as a team will be the go-to builder of globally distributed high-tech teams for the next generation of European and international champions," says Subodha Perera, CEO and founder of E-consulate.

The new venture in Colombo is growing rapidly and has currently an approximate yearly turnover of SEK 42 million and earnings of approximately SEK 15 million.

Frontwalker estimates that the Acquisition will have a positive effect on Frontwalker's earnings in 2026.

The initial purchase price is intended to amount to approximately SEK 96.7 million (based on the total number of shares in Frontwalker as of the date of this press release) and will be paid in the form of newly issued shares of series B in Frontwalker. The subscription price for the consideration shares shall amount to SEK 0.5 per share. The subscription price has been determined by the Board of Directors through arm's length negotiations with the Sellers. It is the Board of Directors' assessment that the subscription price reflects current market conditions and current demand and is thus on market terms. Furthermore, three earn-outs may be paid, corresponding to 50 % of the Company's net profit during the financial years 2026, 2027 and 2028. Each earn out payment may not exceed USD 1.0 million, which means that the potential total earn out is USD 3.0 million. Any earn out payment shall be made in cash.

The transaction is subject to due diligence by Frontwalker and the sellers, the parties agreeing to enter into a share purchase agreement, any regulatory approvals, and the approval of the transaction by the general meeting of Frontwalker. The signing of the share purchase agreement is scheduled for October 2025, and the Acquisition is expected to be completed in December 2025.

For more information, please contact:

Marcus Pettersson Berver
Chairman of the board of directors of Frontwalker
marcus.pettersson@mysafety.se
Mobile +46 730 29 99 01
Switchboard +46 8 60 10 100

This information is information that Frontwalker AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 22 September 2025 at 08:00 CEST.

Briefly about Frontwalker
Frontwalker AB, is listed on NORDIC SME since 2017. The company offers services within IT and Management, tech and digitalisation as well as development and management of systems. The group has offices in Malmö, Stockholm, Uppsala and Sundsvall.