Frontec reduces its ownership in Viewlocity

Frontec reduces its ownership in Viewlocity. Viewlocity has announced that it has received a commitment for a private placement of at least USD 29 million to several new and some of the existing investors. When Viewlocity's planned listing on a U.S. stock exchange was withdrawn in January, it became necessary to arrange other funding for the company's continued development. After having secured bridge financing, Viewlocity has now negotiated a new share issue in which new and existing financial backers are investing slightly over USD 29 million. "Frontec chose not to participate in this round of funding, since we want to use our money to invest in the development of Frontec eBusiness in Sweden," says Per Tjernberg, President of Frontec. "Frontec´s ownership interest will be deluted to about 5%, but the book value of our Viewlocity holding had already been written down to nil. At the same time, we are now assured that our customers can feel confident about AMTrix's continued development. "The investments Frontec has made in its international software operations have given us invaluable know-how," he continues. "The integration competence that Frontec has acquired is international in scope and more thorough than that of any other Swedish IT consultant. We are excited that Viewlocity will have the opportunity to devote resources for the development of its products and its marketing." +46 8 733 7505, Björn Sandberg, CFO, tel: +46 8 733 7521. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: