NNIT A/S: 5/2017 NNIT acquires SCALES Group and changes outlook for 2017
(Thomson Reuters ONE) -
NNIT A/S ("NNIT"), a leading provider of IT services and consultancy announces
that it has signed an agreement to acquire SCALES Group Holding ApS and its
majority owned affiliates ("SCALES Group").
SCALES Group is a leading Danish-based consultancy with a fully dedicated focus
on delivering state-of-the-art implementations of Microsoft Dynamics 365 ERP and
CRM solutions ("Dynamics AX"). In 2016, SCALES Group generated revenue of DKK
116 million and currently has 113 employees in Denmark and Norway.
Today, NNIT entered into an agreement with the shareholders of SCALES Group to
acquire 100% of the shares of SCALES Group for an upfront payment of DKK 122
million and an earnout payment of DKK 52 million at target and depending on
performance.
The Board of Directors at NNIT and the selling shareholders of SCALES Group have
unanimously approved the transaction.
Per Kogut, CEO of NNIT, comments:
"I am excited to announce the acquisition of SCALES, and I very much look
forward to welcoming them to the NNIT Group. SCALES and NNIT combined now cater
for the entire ERP value chain, from outsourcing through application management,
operation and further development of our clients' ERP solution, Dynamics AX."
Hasse Bergman, CEO of SCALES Group, comments:
"We have great ambitions for the future. To continue to achieve our key
strategic business priorities, we believe that joining NNIT is the right
solution. Moreover, we see a great cultural fit between our two companies and we
look forward to be part of the NNIT team."
Transaction overview
NNIT will acquire 100% of the shares of SCALES Group for an upfront payment of
DKK 122 million. Further, the agreement consists of an earnout element, which at
target is DKK 52 million and depending on performance.
Following the acquisition, SCALES Group will in daily operations continue its
current business, while working together with NNIT on new business opportunities
within larger projects and application outsourcing. SCALES will be named
"SCALES, an NNIT Group company".
NNIT will finance the acquisition from existing cash funds and its committed
bank facility as well as from its holding of treasury shares. No external equity
or debt financing will be needed.
Closing of the agreement is expected to be May 31, 2017 and SCALES Group is
expected to be a part of NNIT from June 1, 2017.
Strategic rationale
With the acquisition NNIT will supply a full stack offering for Dynamics AX
spanning advisory, implementation and operations, including application and
infrastructure.
SCALES Group's deep knowledge, technical competencies and experience with
Dynamics AX and particularly with the Dynamics 365 platform combined with NNIT's
ability to handle large Dynamics AX environments will ensure NNIT a powerful
Dynamics AX offering. NNIT's strong portfolio of Microsoft products, its ability
and experience with integration as well as the company's offshore capabilities,
position NNIT uniquely as a leading Dynamics AX consultancy in the Danish
market.
Further, the acquisition complements NNIT's SAP capabilities creating an
unrivalled Danish ERP house providing a full stack value proposition for the
leading ERP solution providers in the Danish market.
About SCALES Group
Headquartered in Søborg/Copenhagen, Denmark, SCALES Group is a leading Danish-
based consultancy fully dedicated to delivering state-of-the-art implementations
of Microsoft Dynamics AX ERP solutions. For the financial year 2016 SCALES Group
generated revenue of DKK 116 million and an operating profit of DKK 15 million
equal to an operating profit margin of 12.7%. SCALES Group employs 113 full-time
employees and growing being located in Copenhagen, Aarhus, Odense and Aalborg in
Denmark as well as Oslo, Norway.
SCALES Group is among the largest Microsoft Dynamics 365 consultancies in
Denmark.
In November 2016, SCALES Group was recognized as the '2016 Microsoft ERP Cloud
Partner of the year in Denmark' and has been among the final three nominated for
this award the past four years in a row.
SCALES Group has implemented, or is implementing, 11 clients on the newest
Dynamics 365 platform, making SCALES Group the leader on this platform in
Denmark and in Scandinavia.
Outlook
As a result of the acquisition outlook for 2017 in constant currencies is
revised:
* Revenue is forecasted to grow 4-8% in constant currencies, while expected
organic growth in constant currencies is maintained at 1-5%
* Operating profit margin is maintained and forecasted at around 10% in
constant currencies
* The expected level of investments in 2017 is revised to 16-18% of revenue of
which around 4% is related to the acquisition of SCALES Group. NNIT
maintains expectation for investments related to operation and new
datacenter of 12-14% of total revenue
Enquiries
Investor contacts:
Jesper Wagener, Head of Investor Relations: +45 3075 5392, jvwa(at)nnit.com
Media contacts:
Helga Heyn, Press relations: +45 3077 8141, hhey(at)nnit.com
Rikke Dalager, Head of Communications: +45 3077 8080, rida(at)nnit.com
About NNIT
NNIT A/S is one of Denmark's leading IT service providers and consultancies.
NNIT A/S offers a wide range of IT services and solutions to its customers,
primarily in the life sciences sector in Denmark and internationally and to
customers in the public, enterprise and finance sectors in Denmark. As of
December 31, 2016, NNIT A/S had 2,809 employees. For more information please
visit www.nnit.com.
5/2017 NNIT acquires SCALES Group and changes outlook for 2017:
http://hugin.info/163771/R/2104888/799211.pdf
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NNIT A/S via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 17.05.2017 - 17:30 Uhr
Sprache: Deutsch
News-ID 543021
Anzahl Zeichen: 6718
contact information:
Town:
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Kategorie:
Business News
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