Getronics receives binding offer for French business from APX Synstar
Getronics announced today that it has received a binding offer from the French ICT Services and Solutions company APX Synstar to acquire a majority stake in Getronics' operations in France. As part of the proposed deal, APX Synstar would transfer its business activities in Belgium to Getronics, strengthening the current operations of Getronics in Belgium. Getronics would retain a 33% stake in the French subsidiaries.
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Getronics has initiated a consultation on the proposed transaction with the Works Councils of its French subsidiaries. The transaction is expected to be signed once the Works Councils have rendered their final opinion and is expected to close in Q4 2006.
"This deal is strategically excellent for Getronics," says Klaas Wagenaar, CEO of Getronics, "It strengthens our business, while also enabling our clients to benefit from an expanded footprint in the French market, and the combined capabilities and know-how of Getronics and APX Synstar."
"This strategic partnership will reinforce our leading position in the IT Solutions and Services market in France," said Noël Saille, CEO of APX Synstar. "It will extend our expertise on the Application Services and the Managed Services side for APX Synstar clients, while also bringing to Getronics clients a new set of capacities around Integration Services on Critical Secured Infrastructure."
The proposed new French partnership would create a focused national player and a strong partnership between APX Synstar and Getronics. APX Synstar has extensive knowledge of the French market, a prestigious client base and considerable ICT expertise in IT integration and services, which would enable it to maximise the value of Getronics' business activities in France. APX Synstar would be able to leverage the first class global ICT services delivery capabilities of the Getronics operation and its skilled and dedicated workforce.
The total estimated 2006 revenue of Getronics' French business amounts to approximately €65 million. The net loss for 2006 until closing in respect of Getronics' French business is expected to be €8 million. Also, as a result of this transaction, Getronics expects to write-down goodwill of approximately €15 million. The estimated 2006 cash flow used in operating activities is €8 million and the total 2006 cash flow used in investing and financing activities is an estimated €6 million..