Sigma increases functional sourcing and acquires Meteorit
Sigma has acquired all shares in the IT company Meteorit AB based in Örebro, Sweden, with slightly more than 100 employees in Örebro, Stockholm and Gothenburg.
“Meteorit is our second major acquisition in a short time and is an important step in our growth strategy,” says Sune Nilsson, President of Sigma. “The acquisition results in further focus on functional sourcing.” Meteorit works with long-term undertakings for a number of clients. The company’s services include document and business management, system administration, system integration as well as operations and support, in accordance with structured quality processes. Similar to Sigma, Meteorit is a Microsoft Gold Partner. “The acquisition is an important complement to our current operations,” continues Sune Nilsson, “The customers and work approach to functional sourcing with which Meteorit operates broadens the possibilities for Sigma’s expansion.” Meteorit was founded in 1997 by a number of IT consultants and at the time had 17 employees. The growth to the current level has occurred organically. The company’s net sales in 2005 amounted to approximately SEK 83 M, with profit after tax of about SEK 3 M. “Today, we are established as a strong and long-term IT partner with many large companies and organizations,” says Thomas Hallberg, President of Meteorit. “Sigma’s strength provides us improved opportunities for continued positive development and expansion, while at the same time Sigma’s strategic focus on functional sourcing fits our long-term strategy perfectly.” The total purchase consideration amounts to SEK 61.3 M. Payment for the acquisition is being made through a non-cash issue in which Sigma issues 1,633,212 new B shares, corresponding to dilution of 1.9% of the capital, and a cash payment of SEK 21.4 M at signing of the agreement and the remaining SEK 18.4 M in 13 months. The share issue is being made within the framework of the Board of Directors’ authorization. A supplemental purchase payment may arise and is based on development of the operations in the next three years. Such a payment will be made in cash and is maximized to SEK 27.6 M, with payments through 2009. The acquisition is being implemented as of January 1, 2006 and is expected to increase earnings per share by SEK 0.01 for 2006, corresponding to 15% compared with earnings per share in 2005. In conjunction with the acquisition, Meteorit is changing name to Sigma Meteorit AB. For further information, contact: • Sune Nilsson, CEO, Sigma AB, 0703-79 15 28 • Lars Sundqvist, CFO, Sigma AB, 0703-79 22 02