Nexus is selling its Consulting business

Security company Nexus, listed on Stockholm stock markets small cap-list (NEXU), is selling its consulting business to IT-consulting company Cybercom Sweden East AB, part of Cybercom Group. With this Nexus is fulfilling its strategy of refining to a product company selling solutions for secure access to information, applications and processes. Sales amount is 30 M SEK in fixed compensation and 5 M SEK in result based additional purchase price during 2008. Capital gain is calculated to between 23-28 M SEK and cash flow will increase with 30 M SEK plus the additional purchase price (maximum 5 M SEK).

The Consulting business (43 Consultants) corresponds to 60.5 M SEK of Nexus total turnover of 134.1 M SEK. Revenue of the product company was 70.4 M SEK for year 2007.
For all of 2007 software license revenue increased with 53 percent compared to the previous year.

During 2008 Nexus will continue to invest in product development and also look for possibilities to increase the product suite by complementary acquisitions to better meet customer demands.

- The timing is right for Nexus to take this step, says Peter Gille, CEO of Nexus. The strategy is to develop Nexus into a pure product company to reach higher share value.
Up till now we have let the two companies grow side by side but now we need to increase focus on the product company. We believe that the consulting company can develop better by merging with a significantly larger consulting company like Cybercom Group, who has a similar business. Nexus will apart from better focus also get the financial resources necessary for long-term development of the product company. Priorities are to continue develop market offerings and increase sales.

As a consequence of selling the consulting business Nexus will make a final business agreement with the landlord about the company’s premises in Marievik, Stockholm. The rental contract will end on May 31 2008. During quarter 2, Nexus will move to new and for the business more appropriate premises with a lower cost.

Selling of the consulting business is dependent of an approval by Nexus extra shareholders meeting to be held on April 9, 2008.


Contact information:

Peter Gille, CEO, Technology Nexus AB
Phone: +46 8 655 39 00
E-mail: peter.gille@nexussafe.com