PROHA PLC PURCHASES CM-SYSTEMS OY
PROHA PLC PURCHASES CM-SYSTEMS OY The Proha Plc Group (hereinafter Proha) has made a binding precontract with all shareholders of CM-Systems Oy. With this agreement Proha acquires the entire stock capital of the Helsinki-based CM- Systems Oy. CM-systems is a company concentrated on the information technology of project management. The CMPro product group of CM-Systems is already widely used in several industrial and service sector companies in Finland. CM-Systems Oy will continue as an independent subsidiary company within the Proha Group, constituting a part of Proha's activity in the field of project management information technology. At the same time as the CMPro product group strengthens and expands the supply provided by the Proha Group, Proha's products and expertise open new opportunities for developing the CMPro product further. The purchase will be conducted as an exchange of shares. The owners of CM- Systems Oy are offered a total of 357,000 new shares of the Proha Plc Group and a sum of FIM 275,000 in exchange for the capital contribution property of CM-Systems' entire stock capital. The shares offered amount to approximately 8.8 % of the stock capital of the Proha Plc Group after the exchange of shares. The new shares include a sales restriction which will expire in two years. The purchase will come into effect after the board of directors of the Proha Plc has reached a decision on the approval of the purchase and carries out a share issue. Through this acquisition, CM-Systems becomes an subsidiary company owned completely by the Proha Plc Group. The purchase is a part of Proha's strategy for attaining a leading position in its area of expertise in the Nordic countries' market, and also for strengthening its firm position in Finland. CM-Systems in a nutshell CM-Systems, founded in 1994, is a software supplier specialising in project management. Its expertise is based on strong practical experience in the sectors of industry and construction. The company's CMPro product group offers solutions for various companies and public organisations involved in project activity. Users of the CMPro systems include e.g. investment-making industry, suppliers of installations and systems, developers and contractors, commercial enterprises and companies operating in the field of services and consulting. CM-Systems Oy employs 9 persons. The main owner of the company is its own key personnel. The net turnover of the company during the financial year 1 January - 31 December 1998 was FIM 4.9 million; the profit before taxes FIM 1.4 million. The estimated turnover of the present financial year is approximately FIM 6 million, profit before taxes some FIM 1.7 million. Proha in a nutshell The Proha Plc Group is a Finnish service enterprise of information technology. The key areas of Proha's activity are project management information technology, automatisation of information system testing, and Internet trade applications. After this contract, the number of persons employed by the Proha Oyj Group will be 83. Proha Plc Pekka Pere Chief Executive Officer Additional information available at PROHA PLC CEO Pekka Pere, tel. +358 20 4362 000 pekka.pere@proha.fi http://www.proha.fi DISTRIBUTION: Helsinki Stock Exchange Major media ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/17/19991217BIT00870/bit0001.doc http://www.bit.se/bitonline/1999/12/17/19991217BIT00870/bit0002.pdf