Diginex Appoints New Leadership Following Strategic Acquisition

In a significant strategic pivot, Diginex has completed the acquisition of German sustainability software firm PlanA.earth GmbH. The move is designed to bolster its position in the European ESG and decarbonization software market, with a total deal value potentially reaching 80 million euros. A key outcome of the transaction is the appointment of the target company's founder as the new group CEO.

Effective January 28, Lubomila Jordanova, the founder and former CEO of Plan A, assumed the role of Chief Executive Officer at Diginex. She succeeds Mark Blick, who has stepped down and transitioned into an advisory capacity. This leadership change underscores the company's intent to fully integrate Plan A's specialized expertise in carbon accounting and EU sustainability regulations. The strategic goal is to create a unified platform that merges mandatory ESG reporting with actionable decarbonization strategies for corporate clients.

Acquisition Details and Performance Incentives

The acquisition was formally closed on January 14. The sellers of Plan A received a consideration of 3 million euros in cash plus 6.72 million Diginex shares valued at 52 million euros. These issued shares are subject to staggered lock-up periods ranging from 6 to 15 months, a standard mechanism to align the former owners with the long-term success of the combined entity.

Should investors sell immediately? Or is it worth buying Diginex?

Beyond the initial consideration, the deal includes an earn-out provision. The sellers could receive additional share-based payments of up to 25 million euros, contingent upon the acquired business achieving specific revenue targets in the fiscal years ending March 2027 and March 2028. This structure directly links the final purchase price to the future commercial performance of Plan A.

Capitalizing on a Regulatory-Driven Market

This consolidation occurs against a backdrop of escalating regulatory pressures across Europe. Businesses face growing mandates to disclose detailed climate and emissions data, driving increased demand for compliance and management software. By integrating Plan A's capabilities, Diginex is positioning itself as a comprehensive provider of ESG, carbon accounting, and decarbonization solutions, aiming to capture a larger share of this expanding market.

Key Transaction Points:

• PlanA.earth was acquired for 55 million euros (3 million euros cash + 52 million euros in Diginex stock).
• Additional earn-out payments of up to 25 million euros are possible based on future performance.
• Lubomila Jordanova, founder of Plan A, is the new CEO of Diginex.
• The merger combines strengths in ESG reporting and carbon footprint calculation.