DnB NOR and EDB Business Partner have today entered into an agreement to extend and expand their commercial and strategic collaboration. EDB will provide DnB NOR with distributed services for operations and payments processing as well as services for applications development and administration over the period to 1 July 2010. The contract represents estimated business volume of approximately NOK 4.75 billion, and will ensure that DnB NOR realises the synergy benefits of lower IT costs that formed part of the basis for the merger of DnB and Gjensidige NOR.
"This agreement with EDB will play an important role in ensuring that DnB NOR offers efficient, high quality services", explains Bente A. Landsnes, Group Executive Vice President, IT and Payment Services at DnB NOR. "Three factors were important in our choice of EDB as a strategic partner; competitive prices, secure and reliable operations and the ability to continually improve the solutions offered", adds Bente A. Landsnes.
"We are delighted by the confidence in EDB that DnB NOR has shown with this agreement. The contract provides the foundation for comprehensive collaboration of a strategic nature", comments Endre Rangnes, Group CEO of EDB Business Partner. "We will now work closely with DnB NOR to ensure that the bank realises the commercial benefits it expects and to develop competitive solutions for the bank's future operations", adds Endre Rangnes.
DnB NOR and EDB announced in March that they had reached agreement to expand their collaboration. The framework agreement the parties have now signed represents an extension and expansion of the collaboration already announced. The agreement covers the period 1 January 2004 to 1 July 2010. EDB has recognised income on the basis of this agreement in its accounts for 2004. The framework agreement covers the following main areas:
* EDB will provide the DnB NOR group with centralised operating services for a period to 1 July 2010. This represents a one-year extension to the agreement announced in March. This will include the operation of DnB NOR's systems and applications together with its operations infrastructure and telecommunications, as well as publishing and distribution services. * DnB NOR has in addition selected EDB to supply operating services for its decentralised platform. The period for this aspect of the agreement also runs to 1 July 2010. This will include the operation of branch office systems for around 11,500 local workstations. This agreement on services for decentralised operations represents an addition to the contract announced in March. * EDB is to be DnB NOR's partner for systems administration and development. This will include the administration of parts of DnB NOR's applications portfolio and support for systems development in these areas. * As part of the project to integrate DnB and Gjensidige NOR, EDB will provide assistance with IT solutions and services to realise the physical reorganisation of the group's branch offices and facilitate savings in the group's IT costs. This work is planned to take place over the period to 1 January 2007.
The contracts represent estimated business volume for EDB of NOK 4.75 billion in total over the period to 1 July 2010. Of this NOK 3.1 million represents new turnover for EDB in addition to its existing contracts with DnB and Gjensidige NOR. The total volume represents an increase of around NOK 1.1 billion from the business volume announced in respect of the preliminary agreement in March. This reflects the extension of the contract by one year and the new agreement on distributed operations. EDB estimates that of the total volume, EDB IT Operations will book NOK 4.5 billion and EDB Bank & Finance will book at least NOK 250 million.