"We greatly respect Plenware's capabilities and business – which is why the new combined Group now fortifies its position as a leading Nordic consultancy within TIM and industry," says Patrik Boman, president and CEO, Cybercom Group. "We see excellent strategic fit between the businesses of Plenware and Cybercom. The acquisition will enable us to expand into new geographic markets, and we further broaden our customer base. We recognise Plenware's extensive knowledge within the industry and will continue the strong development of the Plenware's business as well as its highly skilled personnel. Buying Plenware is a continuation of Cybercom's growth strategy to strengthen its position in the Nordics and obtain valuable nearshore operations in Estonia and Romania – which is what our customers are demanding. In addition, the acquisition will give us an important connection to the rapidly growing Chinese market."
The acquisition is in line with Cybercom's growth strategy, and the new combined Group's delivery capacity becomes more attractive for major projects and assignments. The new Group will have about 1,850 employees and offices in China, Denmark, Dubai, Estonia, Finland, India, Poland, Romania, Sweden, and the UK. Sales are expected to increase to SEK 1,800 million annually, on a rolling 12-month basis. Plenware's customers include Nokia, Nokia Siemens Networks, Sandvik, Alma Media, Kone, and John Deere Forestry.
"As a part of the Cybercom Group, Plenware has an excellent opportunity to develop its business and participate in significant, large-scale customer projects. The two companies complement each other excellently," says Hannu Meskanen, co-founder, president and CEO, Plenware. "Building a future with Cybercom will be extremely stimulating and in many ways also fulfils Plenware's growth objectives."
Cybercom will hold an extraordinary general meeting (EGM) on 23 January to get approval of the acquisition. The companies' boards and major owners support the deal. Plenware is expected to be consolidated from 1 January 2008. The purchase price for 100% of the equity is EUR 33 million; in addition there is about EUR 14 million in liabilities and obligations in Plenware. An additional purchase price is expected to be paid based on 2007 and 2008 profit. Plenware runs a high-margin operation with EBITDA of EUR 7 million (adjusted for one-offs) and sales of about EUR 37 million forecasted for 2007. Plenware's telecom services business unit generates 50% of sales, and its industry and service business unit generates 50%. Very limited structural costs are expected with the deal and besides sales synergies, minor cost synergies were identified, which will have a positive effect during 2008. Earnings per share is expected to increase already in Q1 2008 due to the deal.
"Cybercom has a strong balance sheet," says CFO Per Jonsson, "and we will primarily finance the deal via credit facilities, with the addition of a directed issue of Cybercom shares to current Plenware shareholders. We will maintain a solid equity/asset ratio, which will be about 40% after the acquisition. This deal is attractive because besides increased size, we will expand our customer base, and at the same time diversify our industry sector and geographical focus."
Additional information will be published in the EGM notification and Cybercom's final year-end 2007 statement that will be issued on 5 February 2008.
Questions? Please get in touch with:
Patrik Boman, president and CEO, Cybercom Group +46 73 983 89 79
Hannu Meskanen, president and CEO, Plenware +358-501487
Per Jonsson, CFO, Cybercom Group +46 70 770 46 22
Patrik Anshelm, acting IR and communications director, Cybercom Group +46 70 971 12 84