The acquisition is taking place now that all the contractual terms and conditions have been satisfied. The transfer involves EDB taking over activities expected to generate operating revenue of around NOK 330 million in 2005. EDB is paying approximately NOK 185 million for this business.

 

Under the terms of the contract, EDB is taking over Capgemini's centralised and distributed IT operations for some 140 customers, principally in the transportation, shipping and industry sectors. The activities transferred to EDB include the operation of around 14,000 workstations and almost 4,000 servers as well as supplementary expertise in areas including SAP operations. The acquisition involves the transfer of 306 employees to EDB.

 

"Our ambition is to be the leading regional player for IT outsourcing in the Nordic market. During the course of 2004 we have doubled the size of our business in the Swedish market, and we are well positioned for the consolidation of this market, we believe will continue in 2005", comments Endre Rangnes, CEO of EDB.

 

EDB is paying an estimated NOK 185 million for the business acquired. The final purchase price will depend on the expected revenue growth during the transition period being achieved, and will be determined after the first six months of 2005 when the final instalment will be due for payment. EDB is making a provision for restructuring costs of NOK 25 million as a result of the acquisition, and is financing the transaction by drawing on existing loan facilities. EDB expects the business acquired to generate profitability in line with the group's operating margins.