TietoEnator acquires 51% of Latvia's SIA IT Alise

Source: TietoEnator

TietoEnator has signed an agreement to acquire 51% of the shares of SIA IT Alise (IT Alise). TietoEnator has an option to acquire the remaining shares.

IT Alise has approximately 200 employees and is the largest independent IT professional services company in Latvia with strong relations to the telecom operators. This acquisition strengthens TietoEnator's presence in the Baltic area and provides access to comprehensive skills for Oracle's EBS (E-Business Suite) business system.

IT Alise was established in 1994. 95% of the company's employees are based in Latvia and 5% in Estonia. IT Alise's net sales for 2005 is expected to exceed EUR 7 million and the operating margin (EBITA) is expected to be in line with the operating margin of the TietoEnator Group. The company is owned by the management team and some key employees of the company.

IT Alises's business consists of system management, development projects, consultancy assignments and to some extent sales of licences. A large part of the net sales comes from the telecom industry, where the largest customers are Latvian Mobile Telephone and Lattelekom. Other customers are found within the energy, banking and public sectors.

The purchase price is approximately EUR 2.4 million. The aim is to conclude the transaction during September 2005. The agreement is subject to the approval of the Estonian competition authority.

"This acquisition strengthens our customer and skills base in the Baltic area. The deal means that TietoEnator will now be able to offer all of its telecom customers a more interesting mix of prices and skills," comments Ari Vanhanen, president of TietoEnator Telecom & Media.

"We welcome TietoEnator as the new majority owner of IT Alise. Together with their Nordic and international telecom activities, we will be able to develop locally and contribute globally as well as provide additional value to our long term customers by utilising experience and solutions from an international, well known IT service provider. Being part of TietoEnator will also provide exciting, challenging opportunities for our employees," comments Elmars Gengers, Chairman of the Board, IT Alise.

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