EDB buys Swedish IT firm Datarutin
10 January 2006 | 904 views | 0
Source: EDB Business Partner
EDB Business Partner has entered into an agreement to buy the Swedish IT company Datarutin AB and its subsidiary Datarutin Dokumentor AB.
The agreement strengthens EDB's position in Sweden. The company has expected turnover of SEK 220 million in 2005, and EDB plans to integrate Datarutin into its Swedish activities with effect from 15 February 2006.
Datarutin is one of the market-leading players in the Swedish market for IT operations, consulting services and document management, offering solutions for customers such as the Swedish unemployment benefit offices, other organisations and property companies. The company operates from Stockholm, Arjeplog and Herrljunga.
This acquisition will strengthen EDB's position in Sweden significantly, and brings with it new product areas that complement EDB's Swedish activities. EDB also achieves a larger platform for its IT-services. EDB has enjoyed sound growth in the Swedish market over the last 12 months.
"The acquisition of Datarutin takes us a major step closer to reaching our objectives in Sweden. We aim to generate continuing strong and profitable growth over the years to come, and the addition of Datarutin will make an important contribution to this objective", explains Endre Rangnes, CEO of EDB.
"We are very happy that EDB has chosen Datarutin, and we have been actively looking for a strong partner who can help to further strengthen our market position", comments Anders Berggren, Managing Director of Datarutin AB. "We have evaluated a range of alternatives for the company's future, and feel sure that the sale to EDB will be a positive development for our customers and employees", adds Mr Berggren.
Following the acquisition of Datarutin, EDB will have a strong market position in the document management area in both Norwegian and Swedish markets. Datarutin's products and customer base for traditional document management represent a significant supplement to the Norwegian activities, and provide a good basis to deliver EDB's solutions and services for e-business in the Swedish market.
EDB will pay SEK 123 million at the time of take-over, which is expected to take place 15 February 2006. The agreement also regulates that an amount not exceeding SEK 57 million will be paid in February 2007 on condition that certain goals for turnover is achieved. The acquisition will be financed from existing credit facilities. The agreement requires approval from the Swedish Competition Authority.
Datarutin will form part of EDB's Swedish activities, EDB Business Partner AB. The company's turnover in 2005 is SEK 220 million, with an EBITA margin of 6%. EDB expects turnover in 2006 to be in line with 2005 and the EBITA-margin in line with EDB's margins. The current owners of the company are contractually committed to EDB for the next 36 months.