In July 2001 EDB Teamco and Telenor jointly signed an agreement with Den norske Bank (DnB) in respect of the transfer of the operation of the bank's IT systems. Telenor's involvement related to telephony as well as the network and operation of NT servers and workstations for 6,000 users, while EDB Teamco took over responsibility for the bank's centralised computer operations.

 

Working in consultation with DnB, EDB Teamco and Telenor have implemented a process to re-evaluate the division of responsibilities between the parties to this agreement. The parties have agreed that responsibility for the operation of NT servers and workstations should be transferred to EDB Teamco, and this will be done by transferring the activities carried out by Telenor for the DnB contract.

 

This extends the scope of contract for EDB Teamco, and will increase EDB Teamco's annual billings to DnB by around NOK 120 million, starting from the fourth quarter of 2002. The contract with DnB runs until 1 July 2006, with the renewal options for a further three years. The purchase consideration of NOK 53.5 million is classified as goodwill. Settlement of this purchase price will take place with cash effect in 2003.

 

EDB Teamco already operates similar arrangements with many Norwegian banks, and taking over DnB's decentralised operations will strengthen EDB Teamco's position in this market and pave the way for further growth and cost synergies in this area of computer operating services.