SYSOPENDIGIA EXPANDS TO RUSSIA BY ACQUIRING SUNRISE-R
SYSOPENDIGIA Plc STOCK EXCHANGE RELEASE 14.1.2008
SYSOPENDIGIA EXPANDS TO RUSSIA BY ACQUIRING SUNRISE-R SYSOPENDIGIA Plc (SYSOPENDIGIA) has today acquired all shares of a Finnish software company Sunrise Resources Oy (Sunrise-r or the Company). Sunrise-r operates in Russian near-shore development markets through its wholly-owned Russian subsidiary and has 80% of its personnel in Russia. Sunrise-r is an entry for SYSOPENDIGIA to the rapidly developing Russian software market. The sellers include Thomcapital Ltd and Sunrise-r's Founder and Managing Director Mr. Joakim Kytölä as well as other minority shareholders. Mr. Kytölä continues his duties in the Company. The acquisition price is EUR 3.60 million and is paid as cash consideration and SYSOPENDIGIA finances the transaction through its cash reserves. In addition, the sellers may receive an additional purchase price based on Sunrise-r objectives for the year 2008. The maximum amount of the additional purchase price is EUR 0.6 million, which may be paid either in cash or in SYSOPENDIGIA's shares, as decided by SYSOPENDIGIA. TRANSACTION STRENGTHENS SYSOPENDIGIA'S MARKET POSITION AND OFFERING The acquisition is part of SYSOPENDIGIA'S internationalisation strategy and strengthens SYSOPENDIGIA's current services with qualified near-shore development services as well as local support for customers operating in the Russian markets. Additionally SYSOPENDIGIA will enlarge its activities in the Russian markets with its current products and services. Sunrise-r's expertise of many years in the Russian markets will be highly beneficial in that respect. “The services, customers and competence of Sunrise-r are bringing great value to us. Russian engineering skills are highly respected within the software industry. Sunrise-r fits extremely well in the professional culture of SYSOPENDIGIA” says Mr. Tommi Laitinen, SVP Telecommunications in SYSOPENDIGIA. “Russia is an obvious region for us to establish local operations, providing us fast growing market potential, talented engineering skills and synergies with our current customers. Sunrise-r is a pioneer company in software development activities in Russia and is an excellent base for organic growth”, Laitinen continues. “During the recent years Sunrise-r has been able to grow organically and serve its customers with a high satisfaction level - this will continue also in the future”, says Mr. Joakim Kytölä, Managing Director of Sunrise-r. “We furthermore see the business opportunities in the growing Russian markets and would like to utilize the great expertise we have in the company also in that area. For that we needed a good partner. Of course we see the value for Sunrise-r joining SYSOPENDIGIA from our customers' perspective: for our customers this transaction will bring a wider range of services from a robust and highly recognised partner in the software development industry”, Kytölä continues. “I see the great potential in SYSOPENDIGIA - our services, products and skills can be utilized in international markets in a much larger extent than so far. Sunrise-r opens us the Russian market”, says Mr. Juha Varelius, new President and CEO of SYSOPENDIGIA. “Sunrise-r is an excellent tool for us to boost our organic growth also in new markets and engineering skills for our current businesses”, Varelius continues. SUNRISE-R IN BRIEF Sunrise-r revenues for 2007 were approximately EUR 2.4 million and operating profit approximately EUR 0.6 million. The Company's revenues for year 2008 are expected to exceed EUR 3.0 million and the Company employs currently over 50 software development professionals in St. Petersburg and in Jaroslaw, Russia, and 10 in Helsinki. All employees will transfer to SYSOPENDIGIA Group with their current terms. The 2006 balance sheet total of Sunrise-r was EUR 908 thousand. The company had intangible assets worth EUR 7 thousand, tangible assets and investments worth EUR 338 thousand and current assets amounting to EUR 563 thousand. The company had a shareholders`equity of EUR 709 thousand and current liabilities of EUR 199 thousand. Currently the Company's net assets are approximately EUR 1.0 million. The company does not have any long-term debt. SYSOPENDIGIA PLC Board of Directors Additional Information: Juha Varelius, President and CEO Mobile: +358 400 855 849 email: juha.varelius@sysopendigia.com Tommi Laitinen, Senior Vice President Telecommunications Division, SYSOPENDIGIA Plc Mobile: +358 40 505 1324 email: tommi.laitinen@sysopendigia.com SYSOPENDIGIA Plc is a modern and agile software company delivering ICT products, services and technologies for its customers to improve their competitive advantage - solutions for the needs of a transforming world. The company is based in Finland, operating globally and employing over 1,200 professionals. SYSOPENDIGIA is listed on the Nordic Exchange. Further information: www.sysopendigia.com DISTRIBUTION OMX Nordic Exchange Helsinki Key media