"This acquisition gives EDB a uniquely effective position in the Swedish market for IT consulting. Guide is well managed, generates good profitability and will give EDB a new dimension for its growth ambitions in Sweden", explains Endre Rangnes, CEO of EDB.

 

Following the acquisition, EDB will have 1,270 employees in Sweden and annual turnover in the order of SEK 1,500 million in this market.

 

EDB established IT consulting and applications services as a new area of strategic focus at the start of this year. This represents a further step in EDB's program to create a broader platform for the group in the Nordic IT services market. Together with the acquisitions of Avenir, Spring Consulting and STI, Guide will help to establish EDB as a significant Nordic player for IT consulting and applications services.

 

Taking into account the businesses acquired, around 40% of EDB's future turnover will come from Solutions and IT consulting, while IT operations will account for the balance of 60%.

 

Information on Guide
Guide is a leading supplier of IT consulting and applications services in Sweden. The group is a significant supplier for a number of major Nordic companies. The industrial focus of Guide's activities is on the car industry, pharmaceuticals, the public sector, the bank and finance industry and commerce.

 

Guide is currently represented in Gothenburg, Stockholm, Uppsala, Västerås, Malmö, Lidköping and Skövde. The head office is in Gothenburg. Guide has 520 employees, with the majority working in Gothenburg and Stockholm.

 

Guide reported revenue for 2005 of SEK 523 million, and had a 13% organic growth in revenue from 2004. EBITA margin strengthened from 8% in 2004 to 11% in 2005.   

 

The agreement provides for EDB to purchase the entire share capital of Guide Konsult AB for SEK 657.5 million. The sellers are Nordic Capital Fond IV, which owns 95% of Guide, and employees of Guide who hold the remaining 5%. EDB will continue to operate Guide as a separate company as part of its IT consulting and applications services unit. Guide will continue to be run by its current managing director, Bo Jangvik, and other senior management will also continue in their current roles. The acquisition is expected to take place no later than 1 May 2006.