The Reply Group is a global leading systems integrator and consulting firm with a market capitalization of approximately EUR3.9bn, operating in over 16 countries worldwide. Its subsidiary, Net Reply, specializes in network innovations and supports clients facing networking challenges in the context of digital transformation. Net Reply's expertise lies in defining, testing, and commercializing IoT solutions, as well as delivering IoT data to enhance productivity, environmental sustainability, and energy efficiency. Net Reply's team supports IoT product marketing across various business sectors, including telecommunications, manufacturing, energy, and logistics. Wyld's satellite connectivity and Wyld Fusion data platform will complement Net Reply's IoT requirements by providing global coverage for sensors and devices.

From our perspective, Net Reply should be regarded more as a value-added reseller, as they not only resell Wyld's offering but also provide consultancy and system integrations to their clients. Although details about the agreement remain limited, we assume that Net Reply will place orders for hardware modules once they finalize turnkey agreements with customers. Furthermore, we believe that all hardware orders from Net Reply will be accompanied by data and software orders, given that Net Reply provides comprehensive turnkey solutions.

We anticipate that Net Reply will target the European, Middle East, African and US markets with Wyld's offering as a part of their service solution, with initial orders expected to materialize within the next nine-twelve months. We also expect orders from Net Reply to be of a significant size due to the nature of its offering.

To the best of our knowledge, the agreement between Wyld and Net Reply represents Wyld's first global distribution and system integration agreement. Considering the relatively small size of Wyld's sales team, such agreements can play a vital role in facilitating geographical expansion and market penetration across new segments.

At present, we maintain our fair value range, with a Base case of SEK20 per share, as we monitor the progress of the partnership before making any revisions to our forecasts.