DGAP-Ad-hoc: ALLGEIER SE / Key word(s): Merger/Letter of Intent
Munich, 08 November 2018 - Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) today reached an agreement with Otto Bock Holding GmbH & Co KG, Duderstadt, in the sense of a letter of intent with the aim of merging Allgeier Enterprise Services AG and Sycor GmbH. For Allgeier, this strategic step represents an important milestone on the Group's way to transforming itself into a global software services provider. The consulting and services portfolios of the two units complement each other perfectly. Together, Allgeier and Sycor will be able to successfully support their medium-sized and enterprise customers with innovative IT solutions for the digital transformation of their business processes.
With the planned merger of the two IT consulting companies, one of the leading full-service providers for SAP and Microsoft Services will be created under the entrepreneurial leadership of Allgeier as majority shareholder. With this agreement, both parties have set the stage for further steps in the process, in particular the mutual due diligence. Allgeier and Otto Bock Holding aim to conclude the corresponding contracts by the end of the year. The closing is expected to take place in the first quarter of 2019.
With the strategic merger, the Allgeier Enterprise Services division will almost double its current revenues and significantly expand its customer base, which is mainly located in the upper midmarket and enterprise environment. Allgeier Enterprise Services achieved a turnover of EUR 105 million in the past financial year 2017 with around 750 employees. In 2017, Sycor achieved a turnover of EUR 85 million with 690 employees. The joint unit has more than 1,500 employees and expects sales of EUR 220 million for the current 2018 financial year.
Sycor and Allgeier Enterprise Services will continue to operate in the market in the same units that are familiar to customers and employees, and leverage economies of scale and synergies together. Together they operate more than 50 locations in the DACH region, France, Denmark, China, Singapore, Canada and the USA with more than 1,500 highly qualified SAP and Microsoft experts. In addition to the significantly expanded know-how, the joint customers benefit from the market and partner access of an internationally active service provider and the highest scalability in the provision of services through the use of the joint resource pool.
Allgeier SE is one of the leading IT companies for digital transformation. With a growth strategy focused on innovations and future trends and an integrative entrepreneurial model, Allgeier is seizing the opportunities of digitization. Four segments with individual technical and industry-related focal points work together for around 3,000 customers from almost all industries. With more than 9,000 employees and more than 1,300 freelance experts, Allgeier offers its customers a comprehensive portfolio of solutions and services as a one-stop shop. Allgeier uses a highly flexible delivery model to map the complete IT service spectrum from onsite to nearshore to offshore: With strong footholds in India and China, flexibility and maximum scalability of services as well as highly qualified expert knowledge in high-end software development are ensured. Allgeier's customers include global corporations as well as innovative medium-sized companies that want to secure strategic advantages through high-performance IT solutions, intelligent software and flexible personnel services. The fast-growing group, headquartered in Munich, has around 140 branches in the DACH region, eleven other European countries and in India, China, Singapore, Vietnam, Malaysia, Japan, the United Arab Emirates, South Africa, Australia, Mexico and the USA. In fiscal 2017, Allgeier generated consolidated sales of EUR 574 million from continuing operations. According to the Lünendonk(R) List 2018, Allgeier SE is one of the ten leading IT consulting and system integration companies in Germany. According to Lünendonk(R) Market Segment Study 2018 "The Market for Recruiting, Placement and Management of IT Freelancers in Germany", Allgeier Experts is among the TOP 3 IT personnel service providers in Germany. Allgeier SE is listed in the General Standard of the Regulated Market of the Frankfurt Stock Exchange (WKN A2GS63, ISIN DE000A2GS633). Further information is available at: www.allgeier.com.
08-Nov-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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743203 08-Nov-2018 CET/CEST