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Sopra Group to buy Tieto's UK FS business

13 February 2012  |  3985 views  |  0 Source: Sopra Group

Sopra Group (NYSE Euronext: SOP) announced today two proposed acquisitions which will significantly boost its presence in the United Kingdom.

These transactions are expected to close during the first quarter 2012, subject to regulatory approvals and other customary closing conditions. Under the proposed deals, Tieto Corporation's UK financial services product business and the UK subsidiary of Business & Decision would join Sopra Group.

Both companies would be integrated as soon as possible within Sopra Group's UK subsidiary, which generated revenue of approximately €58 million for financial year 2011.
On completion of the transactions, the new entity will offer its UK clients a wide array of know-how, services and solutions, ranging from innovative service delivery in targeted vertical segments to the distribution of solutions for the financial services sector. These transactions will also enhance the Group's capacity to provide services on an international scale.

Further information about Tieto's "Financial Services UK"
Tieto's UK financial services product business provides mortgage, savings, credit, asset finance and debt collection systems to UK organisations including banks, building societies, consumer and corporate finance companies and debt recovery agencies in the UK and parts of Europe. It generated revenue of approximately €22 million in financial year 2011.

Further information about Business & Decision UK
Business & Decision's UK subsidiary provides consulting and IT services, including business intelligence (BI), customer relationship management (CRM) and e-business for clients in the financial services, retail, public sector and transport verticals, among others. It generated revenue of approximately €26 million in financial year 2011.
Strategy
These transactions are perfectly in line with the Group's announced strategy of reinforcing positioning in Europe and better aligning its European subsidiaries' business models with the operational business model in place in France (consulting, IT services, software development) in order to capitalise on synergies and Group know-how. Moreover, for employees of all three companies, it will create exciting career opportunities during a transformative period in the information technology sector.
Financial information
Sopra Group expects these transactions to be accretive. Given the highly complementary nature of the businesses, the Group anticipates synergies through both revenue growth and cost savings.
On a pro forma basis, Sopra Group's UK subsidiary would have generated revenue of around €106 million in 2011.
The proposed transactions have been approved by Sopra Group's Board of Directors as well as by Tieto's and Business & Decision's respective Boards. The transactions are subject to regulatory approval and other customary closing conditions and are expected to close during the first quarter 2012.
Sopra Group will fund the transactions through its existing lines of credit. Financial terms have not been disclosed. 

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