Data Respons strengthens its position in Denmark
Data Respons ASA has entered into an agreement to acquire TechPeople A/S.
TechPeople was established in 2010 and is specialists in software and application development, architecture and system design as well as communication for embedded and IoT solutions. The acquisition strengthens Data Respons’ position as a leading player within R&D Services in Denmark.
– TechPeople has highly skilled employees and a culture that matches our own. The company has built up a strong client list in Sjælland and recently in Jutland as well. Over the last 5 years, we have owned 50% the company together with the founder Kim Fahrenholtz and we are impressed by the level of competence, quality and project execution in TechPeople. The company is well positioned in respect to the digital transformation that will influence the industry and technology companies in the coming years, says Kenneth Ragnvaldsen, CEO of Data Respons.
– We are really looking forward to join forces with Data Respons, even though we know each other very well from the past. Together with Data Respons’ specialist teams in the Nordic and German region we now have the best prerequisites to participate in more innovative projects and build smarter technology solutions for our customers, says Kim Fahrenholtz, continuing as Managing Director also after the transaction.
TechPeople had a turnover of DKK 52 million for 2016, resulting in a growth of 49 % and a profit before tax of DKK 3,6 million. By the end of 2016 the company had approximately 50 consultants in R&D assignments at the customers. As of 31 December 2016, total assets in the company was DKK 15.3 million. Previously, Data Respons has recognized 50% of TechPeople’s net profit in the consolidated accounts, but from 1 March 2017, TechPeople’s profit and loss statement and balance sheet will be fully consolidated in the consolidated accounts of Data Respons.
It has been agreed an upfront consideration at closing of the agreement where the seller receives 434,000 newly issued shares in Data Respons ASA through a private placement. In addition, the seller will receive annual earn-out payments depending on the company’s actual EBIT for 2017, 2018 and 2019. The annual earnout payments will be due for payment in Q2 the year following the respective earnout year.
The transaction is expected to close within the next 2 weeks.