Data Respons acquires EPOS CAT in Germany - strengthening its position within industrial digitalization and R&D services.
Data Respons ASA has today signed an agreement to acquire 100% of the shares in EPOS CAT GmbH, a German software technology and R&D services company with 100 employees headquartered in Ingolstadt. The company is a leading specialist provider to the automotive industry offering advanced computer aided testing (CAT), R&D IT services, software development and systems integration.
- With this acquisition, we continue to expand our footprint in Germany, the largest market in Europe. EPOS CAT is a highly regarded industrial digitalization specialist to the automotive industry offering a wide range of services including advanced digital measuring and testing solutions assisting the continuous R&D processes, a cost efficient solution ensuring high quality in the software development. Their specialist competence offers great synergies and strengthens Data Respons' position as a complete technology partner for industrial digitalization, smarter embedded and IoT solutions, says Kenneth Ragnvaldsen, CEO of Data Respons.
- Data Respons shares the same value and vision as we have built our company on over the last 17 years. Both companies are developing and implementing innovative technology solutions for the future in close collaboration with our customers. Joining forces with Data Respons will enable us to capitalize on our knowledge and expand into new industries and markets, says Günter See, Managing Director of EPOS CAT.
- I am very pleased to welcome EPOS CAT to the Data Respons family. They have 100 specialists, which will contribute and strengthen the core asset of our company - competent people. I am confident that we jointly can take on large ground breaking technology projects and create highly valuable smarter digital solutions for our customers, concludes Kenneth Ragnvaldsen.
EPOS CAT expect a turnover of EUR 9.2 million in 2017 and an EBIT of EUR 2.6 million, equal to an EBIT margin of 28%. The transaction is structured as an earn-out with an upfront consideration of EUR 9.8 million due at closing and an additional amount based on the company's EBIT performance over the next 3 years (2018, 2019 and 2020). The total consideration for the purchase will be determined by the average EBIT during the next 3 years multiplied by 7.0x (however not lower than the upfront amount of 9.8 MEUR). EPOS CAT is debt free and has cash in hand of EUR 0.6 million. The earn-out payments will be due in Q2 the year following the respective earn-out year with the first payment on April 30 2019, the second payment on April 30 2020 and the last payment on April 30 2021.
The initial cash consideration will be funded by a combination of a new 7-year bank loan of NOK 85 million and existing cash reserves. EPOS CAT will be consolidated into Data Respons' consolidated financial statements from December 2017. Total transaction costs is estimated to NOK 6.0 million, which will be recognized in the Q4 2017 accounts.
The transaction is expected to close within the next 2 weeks.
For further information:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, tel. +47 913 90 918.
Rune Wahl, CFO, Data Respons ASA, tel. + 47 950 36 046
About Data Respons
Data Respons is a full-service, independent technology company and a leading player in the IoT, industrial digitalization and the embedded solutions market. We provide R&D services and embedded solutions to OEM companies, system integrators and vertical product suppliers in a range of market segments such as Medical, Industry Automation, Smart grid/Smart home, Bank and Insurance, Automotive, Defense, Maritime, Energy and Telecommunications.
Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT), and is part of the information technology index. The company has offices in Norway, Sweden, Denmark, Germany, and Taiwan. www.datarespons.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading