Eniro acquires DA business in Finland and exit Ukraine
Through the acquisitions of the Directory Assistance Businesses in the cities of Joensuu, Jyväskylä and Tampere, Eniro will strenghten its geographical coverage and market position in the DA business in Finland.
The combined acquisition price for the Directory Assistance Businesses of Soon Com Oy and TikkaCommunications Oy is 25 MSEK and the transactions will increase the Eniro Group's goodwill by the same amount.The goodwill amortizations will be tax deductible.The combined annual operating revenues are 13 MSEK with an operating income before depreciations (EBITDA) of 5 MSEK.The acquisition multiple is approximately 5 times EBITDA and the acquisitions are expected to have a positive effect on cash earnings per share as well as on earnings per share from 2004. Eniro is one of Europe's leading suppliers of search-related services and one of the largest Internet players in Northern Europe. Eniro's business concept is to facilitate trade by connecting buyers and sellers.This is achieved by providing information on the user's terms whenever a purchase need arises. In Finland, Eniro already operates a nationwide directory assistance service - Eniro:0100100 - and a directory assistance service - 118 - for Elisa and Radiolinja subscribers. Through the acquisitions, Eniro Finland will also operate directory assistance service - 118 - for Soon Com in Tampere, Kestel in Jyväskylä and for TikkaCom subscribers in Joensuu. The acquisitions will be finalized in the beginning of January 2004. Exit in Ukraine Eniro is exiting Ukraine through the sale of its operation, TeleMedia Ukraine, as per Dec 31, 2003. The exit will have no financial impact on the result of 2003. The operating revenues forTeleMedia Ukraine amounts to approximately 5 MSEK annually with a breakeven EBITDA.The operation has 80 employees. For information Lars Guldstrand, President and CEO, Tel. +46 8 634 70 01, +46 70 528 81 81 Lennart Bernard, CFO, Tel + 46 8 634 70 30, +46 70 825 18 34 Boel Sundvall, VP Communications & IR, Tel +46 8 634 70 06, +46 70 560 60 18 www.eniro.com