Atle Buys 27% of High-growth Norwegian IT Servicing Player InfoCare.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--May 12, 2000 Atle has signed an agreement to acquire 27% of the shares in InfoCare ASA- a provider of servicing and delivery logistics to the IT and telecom industries. InfoCare, with a secure market position in Norway, and annual growth exceeding 30%, is now embarking on a pan-Nordic expansion strategy encompassing organic growth and acquisitions. The objective is to at least double sales within a two-year period. Looking further ahead, the goal is a stock market flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. . InfoCare, with a headcount of some 360, achieved sales of NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 238 m in 1999, achieving earnings before tax exceeding NOK 13 m. The acquisition will be effected through a NOK 45 m private placement in InfoCare ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and , with a stock acquisition of NOK 5 m-plus. The transaction is dependent on approval by InfoCare's shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. . InfoCare, until the present owned by its management and some 100 shareholders, develops and supplies field service and spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. logistics for IT and telecom industry equipment. InfoCare's Norwegian field service corps extends to 280 professionals that provide equipment installation, configuration, servicing and repair. Major clients include ICL (International Computers Ltd., London) The former name of Fujitsu Services, the European-centered arm of the global Fujitsu Group and one of the leading IT services companies in Europe, the Middle East and Africa. , IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , Compaq, Cisco, Siemens, Ericsson, HP and several other prominent telecom and IT players. For several years, operations have been in brisk, profitable growth- the company enjoys a very secure position on the Norwegian market. Now, with Atle's assistance, InfoCare will embark on a pan-Nordic, and northern European, growth strategy. The overall market is growing by 12- 15% annually, while significant opportunities for still faster growth are possible through successful corporate acquisitions, the result of a fragmented sector structure and a market where increasingly, the heavyweight IT and telecom players are outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. this type of service. Commenting on the transaction, Gustav Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. , Atle Mergers & Acquisitions' Chief Executive said: "in the IT and telecom industry, there is an acute need for the highly cost-efficient and competitive services concept InfoCare is offering." ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITING ADDRESS: REGERINGSGATAN 48 TELEPHONE +46 (0)8 506 10100 TELEFAX +46 (0)8 506 10110 CORPORATE IDENTITY NO.: 556454-8799 "The combination of a skilled management and organisational resources, a tried-and-tested concept, bright growth prospects in the Nordic region and northern Europe, plus a pronounced growth culture within this enterprise mean we take an upbeat view of InfoCare's ongoing development and expansion." In response, Helge B. Risnes, InfoCare ASA's Chief Executive, said: "Atle's entry gives us a partner with an extensive contact network, rigorous corporate development and acquisition expertise, plus the financial clout that will allow InfoCare's Nordic growth strategy to take a big step up in tempo. Our long-term ambition is to refine a profitable and sustainable servicing concept, where in partnership with customers, we provide services that allow them to sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp their focus on core business yet further. InfoCare has substantial growth opportunities both inside and outside Norway." Stockholm, 12 May 2000 Atle AB (publ) Atle- key facts Atle is a growth company that intends to be 2-3 times its current size in 5 years' time. Atle is a private equity player, investing in unlisted companies, participating actively in their development, and after a few years, finding them a suitable new home- through an exit- thereby realising value growth. Since 1993, the Atle group's earnings have risen progressively, from SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 373 m to SEK 1,025 m in 1999. Atle maintains a high transaction tempo, acquiring over 20 enterprises across all sectors each year. Since inception in 1992, Atle has invested in approximately 200 businesses and exited from over 100. Its annual return from these exits has exceeded 50%. 43 of its holdings (26% of invested capital) are in IT and other technology enterprises. Atle is quoted on the Stockholm Stock Exchange's A-list and has approximately 16,000 shareholders. -------------- Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/12/20000511BIT00940/bit0001.doc http://www.bit.se/bitonline/2000/05/12/20000511BIT00940/bit0002.pdf |
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