EDB buys Swedish card processor Cekab
23 February 2007 | 11029 views | 0
Nordic IT services group EDB Business Partner has signed an agreement to acquire Centralen för Elektroniska Korttransaktioner (Cekab) - a Swedish card processing company established by Swedbank, Nordea, Svenska Handelsbanken and Danske Bank - for a total of Skr257 million.
Cekab was established in 1998 to provvide card servces to banks in the Nordic region. The company reported turnover of Skr134 million for 2006.
Nordea currently owns a 39% stake in the business, while Handelsbanken holds a 37% share. Swedbank owns 21% and Danske Bank holds a three per cent stake.
The unit is expected to have in the order of Skr20 million in cash at the time of acquisition, which is expected to close in March. EDB says Cekab will continue as a wholly-owned subsidiary under its existing management, which includes managing director Eva Menzing.
Comenting on the acquisition, Endre Rangnes CEO of EDB, says: "This acquisition puts EDB in the driver's seat for the future of card processing in the Nordic countries. Cekab is an exciting company and opens up entirely new opportunities for EDB in both the Swedish and Nordic banking and finance markets."