First phase of synergy program to be implemented
(Thomson Reuters ONE) -
(Oslo, 29 December 2010) The Board of Directors of EDB ErgoGroup ASA has
approved the first phase of the synergy program announced in connection with the
merger. This first phase of the program will include headcount reductions in
staff and support functions, and also in IT Operations, totalling 105 employees,
and will be completed over the course of the first half of 2011. The company
will accordingly recognise a provision for restructuring costs in order of NOK
65 million in connection with its results for the fourth quarter of 2010.
Provisions related to reduction of headcount in the total synergy program is
estimated to be NOK 150 milllion which is in line with the information provided
at the time of the interim report for the third quarter of 2010.
According to the interim report for the third quarter of 2010 there will also be
total operational costs of NOK 150 million by second quarter of 2012 to realize
the synergy program. In fourth quarter of 2010 the operational cost related to
the synergy program is estimated to be NOK 10 million.
In addition EDB ErgoGroup will report NOK 25 million in operational cost in the
fourth quarter of 2010 related to planning, detailing and implementation of the
synergy program.
The total effect of cost synergies is estimated to be NOK 325 million, with the
full effect realised over the course of 18 months.
Any enquiries may be addressed to:
Eli Giske, Acting CFO. Tel: + 47 908 44 189
Geir Remman, SVP, Corporate Communications. Tel: + 47 970 55 017
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: EDB ErgoGroup ASA via Thomson Reuters ONE
[HUG#1475967]
Unternehmensinformation / Kurzprofil:
Datum: 29.12.2010 - 08:15 Uhr
Sprache: Deutsch
News-ID 50095
Anzahl Zeichen: 2417
contact information:
Town:
Oslo
Kategorie:
Business News
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