Cybercom divests Chinese operations
Cybercom has signed an agreement with Wicresoft to divest the Chinese operations.
”In line with our strategy to intensify focus on our major businesses in the Nordics and streamline our client proposition, Cybercom is now leaving China. Through this we are initiating the optimisation of our international structure,” says President and CEO Niklas Flyborg. “Our clients will continue to benefit from offshore deliveries, but going forward we will focus on our successful Indian operations.”
Cybercom’s business in China, with about 100 employees, has long been unprofitable. The purchase price is negative, i.e. in the agreement between Cybercom and Wicresoft, Cybercom undertakes to pay SEK1.3 million in connection with the divestment.
The transaction will be conducted through a transfer of shares, whereby Wicresoft will take over all assets, client contracts, employment agreements and other obligations as of 6 June 2012. Cybercom’s second quarter 2012 earnings will be charged with an estimated non-recurring expense of SEK 9 million in connection with the transaction. The transaction is expected to generate annual savings of SEK 10 million, with a positive effect as early as during 2012. In addition, Cybercom and Wicresoft have today signed a cooperation agreement that will make it possible for Cybercom’s clients to benefit from delivery from China.
”I am very pleased to conclude this agreement with Wicresoft, which is a successful Chinese outsourcing company with over 4,000 employees and an international client list. I am convinced that Wicresoft will offer a good future for existing employees and ongoing client projects,” says Niklas Flyborg.
For additional information, please contact:
Niklas Flyborg, President and CEO +46 70 594 96 78
Camilla Öberg, CFO +46 73 398 50 01
Kristina Cato, Communications Director and IR Manager + 46 70 864 47 02
About Cybercom. Cybercom is an IT consultant that offers global delivery capacity for local and international business. The group has become established as a recognised provider of turn-key solutions in telecom management, connected devices, Internet services and security. Cybercom has approximately 1,500 employees, Cybercom’s consultants work around the world and the company has its own offices in 9 countries. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999. For additional information please visit www.cybercom.com.
About Wicresoft. Wicresoft is a leading ITO/BPO ITO (Information Technology Outsourcing; BPO — Business Process Outsourcing) service provider in China. Through advanced process control, innovative technologies & tools, and efficient people & project management systems, Wicresoft analyze customer requirements and consistently help the clients streamline business process, improve core competency and reduce operational expenditure to create value and achieve competitive advantage. Based on continuous innovation and investments, Wicresoft fully complies with world-class service/technology standards and aims to build itself into a trusted global outsourcing service provider.