| EDB closes its acquisition from IBM |
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(Oslo, 3 January 2005) EDB Business Partner has taken over IBM's activities in the area of IT operations and applications services for Norwegian customers in the local public sector, distribution and industry sectors with effect from 31 December 2004 in accordance with previously signed contract. The acquisition is taking place now that all the contractual terms and conditions have been satisfied. The transfer involves EDB taking over activities that are expected to generate operating revenue of around NOK 500 million in 2005. EDB is paying approximately NOK 473 million for this business.
Under the terms of the contract, EDB is taking over IBM's outsourcing activities for local public sector entities and medium-sized companies, IBM's Infobank, EDI services, an operations centre at Hamar and IBM's ownership interest in Kommunedata AL. This business provides services for some 300 municipalities, major public registries as well as customers in the distribution and industry sectors. The acquisition involves the transfer of 232 employees to EDB.
"This acquisition gives us a markedly stronger position in the public sector market, and means that EDB can now offer products and services for this growing market across the entire value chain. The expertise this acquisition brings to EDB will strengthen our competitive position in this demanding market", comments Endre Rangnes, CEO of EDB.
The agreement involves EDB taking over this business from IBM for a total price of NOK 473 million, of which NOK 60-70 million relates to business premises and approximately NOK 20 million to other fixed assets. EDB is financing the transaction from liquid assets and drawings on existing loan facilities. EDB expects the business acquired to have a positive effect on the group's margins.
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