Linedata Services has agreed the acquisition of French pensions and insurance software house ESDS in an all-share transaction planned for Q4 2003.
The acquisition of ESDS, whose activities have developed around its proprietary Oracle-based Master A software solution, will enable Linedata Services to strengthen its market share in retirement savings and pensions in France while also providing inroads into the buoyant life insurance segment.
As part of the deal, Linedata will also acquire billing software designed exclusively for telecoms operators, and which accounted for 20% of ESDS activity in 2002.
With revenues of €12 million forecast for 2003, ESDS boasts 50 employees and over 30 customers in France, including leading institutions in the insurance sector such as ACMN, AGF-Allianz, AIG, Fortis, MAIF, Socapi, and Zurich Financial Services.
The operation will be marketed under Linedata Services' Employee Savings, business which recorded revenues of €20 million in 2002.
Anvaraly Jiva, CEO of Linedata Services, comments: "By consolidating our position in France, we will be ideally placed to offer a response to the needs of the main European markets that already boast funded private pension schemes."