Sigma establishes operations in Norway
Sigma is establishing itself in Norway through an entrepreneur package. The plan is to create a customer-oriented organization that makes use of Sigma's supply capacity in Sweden and Ukraine. The aim is to achieve an annual turnover of SEK 200 million during the entrepreneur period.
Agreements have been entered into with two Norwegian entrepreneurs who are well-established on the local market and who will build up extensive operations in Norway over a number of years. Sigma becomes competitive with the supply capacity of other Sigma companies for the Norwegian market, which is characterized by a lack of resources. A certain amount of recruitment will also take place in Norway, but the business model is built on low fixed costs.
Sigma's proven model of Managed Services, in which Sigma undertakes and is responsible for execution and supply, is judged as being one of the success factors, as is Sigma's experience in delivering assignments coordinated from several geographical locations. Sigma has considerable experience of using this model in other parts of Scandinavia and, not least, from Ukraine.
"We look forward to the expansion in Norway with great confidence. It's a country with a high level of demand and many business opportunities, not least when you can create efficient and competitive services for the customers," says Håkan Karlsson, CEO of Sigma, adding "Sigma's entire supply capacity with 1,400 employees is supporting the move to establish there."
The acquisition is taking place in several stages. Sigma is initially acquiring 55% of the company, which will be named Sigma ITM AS Norway, for NOK 55,000 and after that a capital injection of a further NOK 495,000 will be made. If necessary, Sigma will act as guarantor for bank credits of up to NOK 2 million and has a commitment to help with the funding of working capital of a further NOK 2 million. Thus, the total maximum exposure for Sigma is NOK 4.5 million.
Sigma has the option to acquire a further 11.25% of the shares in 2016. Sigma then has the option to acquire the remaining shares once 2018 has ended. The price of the shares is based on a division of the profit after tax, which is generated through the operations in Norway during the entrepreneur period of 2013 to 2018. Sigma's purchase price is based entirely on already generated results and cash flows. The purchase price is provisionally estimated at NOK 30 million, but since the operations are presently being established, it will probably be revised later within the framework of current accounting standards.
The company will declare the estimated purchase price of NOK 30 million as goodwill with an obligation to value future purchase prices at the actual value. A complete explanation will be presented in the quarterly report for the first quarter of 2013.
For further information, please contact:
Håkan Karlsson, CEO Sigma +46 703-792000
Lars Sundqvist, CFO Sigma +46 703-792202
The information is that which Sigma AB (publ) is required to declare by the Securities Business Act and/or the Financial Instruments Trading Act. The information was submitted for publication on March 5, 2013.
Sigma is a long-term business partner wherever information technology makes a difference. We are a global actor with a Nordic base. We deliver the smartest solutions for our customers' business aims.Sigma is listed on the Stockholm Stock Exchange and has about 1500 employees in eight countries. www.sigma.se