Pamica Group’s subsidiary Eskilstuna Dynamics Holding AB (“EDAB”) has entered into a settlement agreement with NicFreJon Holding AB. The agreement states that an earn-out of MSEK 12 will be paid to NicFreJon Holding AB for the operations of EDAB’s subsidiary. In addition, any profit earned by EDAB for the 2025 financial year will be distributed equally between the parties. NicFreJon Holding AB had previously asserted that EDAB was obligated to pay MSEK 50 due to an alleged breach of contract related to the non-payment of an earn-out. No further claims remain between the parties following the signing of the settlement agreement.
“The agreement is important from both a monetary and a commercial perspective. EDAB, which manufactures and sells software and hardware for use in targeting systems at shooting ranges, primarily in the US, is part of Pamica Group’s defense operations. The company has superior products and good customer relationships in the US market, and following the conclusion of this dispute, we see favorable opportunities to further develop existing partnerships,” says Jan-Olof Svensson, CEO of Pamica Group.
Background information
On February 20, 2025, Pamica Group announced that EDAB had received a notice of arbitration from the SCC Arbitration Institute (SCC). The arbitration was initiated by NicFreJon Holding AB, which submitted a request for arbitration to the SCC. The operations of EDAB’s subsidiary were acquired from NicFreJon Holding AB by Pamica Group, indirectly through EDAB, in November 2023. NicFreJon Holding AB asserted that EDAB was obligated to pay MSEK 50 due to an alleged breach of contract related to the non-payment of an earn-out. Additionally, NicFreJon Holding was seeking interest on the amount and compensation for legal costs.