TAG will continue as a separate company. The business currently has 100 employees and is based in Mo i Rana.

TAG has reported strong growth over recent years. The company's operating revenue is expected to show a 20% increase in 2005 to NOK 114 million. TAG generates an EBITA margin of 20%. Revenue is expected to show continued growth next year, with an equivalent EBITA margin.

 

The acquisition will take place with effect from 15 January 2006. EDB will finance the purchase from its existing credit facilities. The company will be part of the Bank & Finance unit in the Solutions business area of EDB.

 

"The acquisition of TAG Systems gives EDB a stronger market position and expands our expertise in the card area. The products, services, expertise and experience of the two companies complement each other well. We can now offer a complete value chain of solutions and services for Norwegian and international banks. This provides the basis for faster growth in the Bank & Finance sector, and also offers opportunities for business with other sectors. Card and payment services represent a major area of focus for EDB, and we are positioning ourselves to take a larger share of this market", comments Endre Rangnes, CEO of EDB.

 

"EDB is the best choice to develop TAG's business. The two companies complement each other, and will together be a powerful force in the card area. We already enjoy excellent close relationships with EDB through our current collaboration. EDB offers the financial strength and expertise needed to succeed in a larger and competitive market", comments Ståle Lønnum, Managing Director of TAG Systems. When he retires, Jon Neeraas will replace him as new Managing Director of Tag Systems.

 

TAG has supplied the largest Norwegian banks for many years, and has won a leading position as a supplier of smart cards. TAG has several long term contracts. These customer relationships will continue under EDB's ownership. TAG and EDB have worked together since 2004. In addition, TAG's products are included in EDB's range of card services that are currently used by seven offshore-based international banks, Reliance Bank and Handelsbanken's UK operation.

 

TAG Systems AS

TAG Systems was incorporated in 1991, and is a VISA and MasterCard certified company. The company supplies banks with card personalisation and other services for their card activities. TAG currently supplies both Norwegian and international banking and finance customers. In addition, TAG supplies customers in other sectors. TAG is based in Mo i Rana. TAG Systems was voted the Norwegian winner of the Ernst & Young Entrepreneur of the Year award in 2004.

 

 

Contact persons:

Endre Rangnes, CEO, EDB. Tel: +47 48221111

Petter Idar Jenssen, EVP - Solutions, EDB. Tel: +47 928 97 381

 

Ståle Lønnum, Managing Director, TAG. Tel: +47 915 44 636

Jon Neeraas, Head of Marketing, TAG. Tel: + 47 91371350