IBS divests Brazil operations

IBS has signed a final agreement with the management of IBS Brasil Informática Ltda, a wholly owned subsidiary of IBS AB, to divest the operation to the management team led by Managing Director Marco Esteves. As communicated earlier, divestiture of non-core operations is a key step in the development in IBS and part of the strategy to focus on international distribution management solutions.

The agreement covers the transfer of all existing nine employees, as well as the office in São Paulo. The terms include a Business Partner section giving the company exclusive rights to sell IBS products in the Brazilian market for a period of three years. All existing contracts are also transferred, ensuring that customers get continued support. The transaction is effective as of October 24, 2008.

“Part of the new strategic initiative is to optimize the route to market and take advantage of different models in different markets. Brazil is clearly an interesting market place and one where we do have important customers”, says Mike Shinya, CEO. “By turning this subsidiary into a business partner with experienced management and staff, IBS is provided with a good and knowledgeable platform for taking advantage of the potential for new business that exists in this market while minimizing our exposure to financial risks.”

For more information, please contact:
Oskar Ahlberg, Senior Vice President of Communications, IBS AB
Tel: +46-70-244 24 75
oskar.ahlberg@ibs.net