Acquisition of ReadSoft Consit in Denmark permits greater focus on the Oracle segment
ReadSoft has today acquired the remaining 50% of ReadSoft Consit, a Danish development company, and thereby become the sole owner of the company. The acquisition provides ReadSoft with proprietary products and Document Automation expertise in Oracle'sE-Business Suite system. The transaction is expected to boost ReadSoft's earnings per share as of 2007.
In February 2005, ReadSoft acquired a 50% stake in Consit Development, a wholly owned subsidiary of Consit (a Danish consulting group). ReadSoft is now acquiring the remaining stake in the company (which changed its name to ReadSoft Consit) in order to take advantage of the dynamic Oracle market on its own.
"As a world-leading Enterprise Resource Planning (ERP) system, Oracle E-Business Suite is used by more than 20,000 businesses, particularly in the United States and Europe," says ReadSoft CEO Jan Andersson. "That is one of our key segments, and now we will have the means to develop proprietary products for Document Automation in the system. Along with our previous acquisition of ReadSoft Ebydos, this transaction gives us both the expertise and solutions we need for Oracle and SAP, the world's two biggest ERP systems. This is strategically important and provides us with a unique opportunity to strengthen our position as the leading supplier of Document Automation solutions in these segments."
With eight employees who concentrate on product development, ReadSoft Consit currently generated annual sales of approximately DKR 5,3 million during 2005.
Morten Godsk, who will stay on as CEO of ReadSoft Consit, is very pleased by the merger. "Both our operations and products have experienced remarkable growth during our time with ReadSoft," he says. "Now that we can act as a single company with common interests, all the pieces for fully exploiting the market have fallen into place. I'm looking forward to the next few years with great confidence."
ReadSoft is paying DKR 4 million for the remaining 50% stake in ReadSoft Consit and is assuming a DKR 1.6 million loan left by Consit.
ReadSoft AB
Jan Andersson, President/CEO
Pho: +46-(0)708 - 37 66 00
Jonna Opitz, Vice President, Corporate Communication
Pho: +46-(0)708 - 37 86 68
E-mail: jonna.opitz@readsoft.com
More about ReadSoft on www.readsoft.com
About ReadSoft
ReadSoft is the world’s leading supplier of software for Document Automation. The company develops and markets a complete product platform for Document Automation named ReadSoft DOCUMENTS. The vision is to free businesses everywhere from manual document handling. Since its founding in 1991, ReadSoft has developed into a global group with 11 subsidiaries in Europe, North and South America and Australia, and a large number of local and global partners. ReadSoft is headquartered in Helsingborg, Sweden, and its primary R&D facility is in Stockholm. ReadSoft has been listed on the Stockholm stock exchange since 1999. For more information please visit www.readsoft.com