HiQ acquires profitable specialist consultancy Computer & Audio-Technical Systems AB

HiQ acquires profitable specialist consultancy Computer & Audio-Technical Systems AB HiQ is acquiring the IT consultancy Computer & Audio-Technical Systems AB (CATS), which employs nearly 50 people at offices in Stockholm. CATS works on systems development of business-critical systems for the financial, printing and gaming industries. "CATS is a profitable, well-managed company which enjoys long-term relationships with its clients and has skilled employees. It is a company that is very reminiscent of HiQ. CATS will strategically strengthen our market presence in sectors such as finance, entertainment and gaming," says Lars Stugemo, President and CEO of HiQ. CATS develops advanced technical systems with high requirements on reliability and availability. CATS was established in 1985 by Dag Sundman, its current Managing Director, and had a turnover of approximately SEK 40 million during 2003. "CATS is a successful company that has exhibited good results through the years with margins well in line with those at HiQ. CATS and HiQ share a belief in basic values such as quality and profitability, which bodes well for our successful cooperation. We are looking forward to seeing CATS continue to develop well, along with the rest of HiQ," says Stugemo. CATS works on transaction-intensive systems for a number of industries. Its clients include OM HEX, Front Capital System, Tidningstryckarna (the printing works of Swedish newspapers Aftonbladet and Svenska Dagbladet), Le Monde, SEB and EssNet. "HiQ has a very strong brand and a good reputation in the consulting sector. HiQ's strong position in the Nordic region will provide us with plenty of opportunities for new business within finance, entertainment and gaming," says Dag Sundman, Managing Director of CATS. The purchase price is approximately SEK 56 million, of which around SEK 25 million will be paid in cash and the remaining part with 2 124 301 newly issued shares in HiQ, resulting in a dilution of approx. 4.3 %. The acquisition includes a cash position of approximately SEK 7 million. The acquisition is estimated to give rise to goodwill of around SEK 42 million that will be amortised over 10 years. CATS will make a positive contribution to HiQ's profit and to the earnings per share, from start. The company will be consolidated with immediate effect and CATS will in future operate as a fully-owned subsidiary of HiQ International AB, with Dag Sundman as Managing Director. The Board of HiQ has on 18 August resolved to issue the new shares, following the authorisation given by the AGM on 29 April. After the acquisition HiQ will have 480 employees with seven offices in Sweden, Denmark and Finland. For further information, please contact: Lars Stugemo, President and CEO, HiQ International, tel.: +46 (0)8-588 90 000 Dag Sundman, Managing Director, CATS, tel.: +46 (0)8-736 77 00 Annika Larsson, CIO, HiQ International, tel.: +46 (0)8-588 90 015, +46 (0)704-200 103 HiQ is an IT and management consultancy that focuses on high-tech solutions in the fields of communication, software development and simulation. The company is a leader in these fields and the Nordic region is its domestic market. HiQ employs around 480 people at offices in Sweden, Finland and Denmark. HiQ is listed on Stockholmsbörsen's Attract 40-list. For more information, please visit www.hiq.se. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/19/20040819BIT20040/wkr0001.pdf HiQ aquires CATS AB