August 25, 2005
Tietoenator acquires SIA IT Alise in Latvia - strengthens presence in baltic area
TietoEnator has signed an agreement to acquire 51% of the shares of SIA IT Alise (IT Alise). TietoEnator has an option to acquire the remaining shares. IT Alise has approximately 200 employees and is the largest independent IT professionalservices company in Latvia with strong relations to the telecom operators. This acquisition strengthens TietoEnator's presence in the Baltic area and provides access to comprehensive skills for Oracle's EBS (E-Business Suite) business system.
IT Alise was established in 1994. 95% of the company's employees are based in Latvia and 5% in Estonia. IT Alise's net sales for 2005 is expected to exceed EUR 7 million and the operating margin (EBITA) is expected to be in line with the operating margin of the TietoEnator Group. The company is owned by the management team and some key employees of the company.
IT Alises's business consists of system management, development projects, consultancy assignments and to some extent sales of licences. A large part of the net sales comes from the telecom industry, where the largest customers are Latvian Mobile Telephone and Lattelekom. Other customers are found within the energy, banking and public sectors.
The purchase price is approximately EUR 2.4 million. The aim is to conclude the transaction during September 2005. The agreement is subject to the approval of the Estonian competition authority.
"This acquisition strengthens our customer and skills base in the Baltic area. The deal means that TietoEnator will now be able to offer all of its telecom customers a more interesting mix of prices and skills," comments Ari Vanhanen, president of TietoEnator Telecom & Media.
"We welcome TietoEnator as the new majority owner of IT Alise. Together with their Nordic and international telecom activities, we will be able to develop locally and contribute globally as well as provide additional value to our long term customers by utilising experience and solutions from an international, well known IT service provider. Being part of TietoEnator will also provide exciting, challenging opportunities for our employees," comments Elmars Gengers, Chairman of the Board, IT Alise.
TietoEnator is one of the leading architects in building a more efficient information society and the largest IT services company in the Nordic countries. TietoEnator specialises in consulting, developing and hosting its customers' business operations in the digital economy. The Group's services are based on a combination of deep industry-specific expertise and latest information technology. TietoEnator has close to 15,000 experts in more than 20 countries.
About IT Alise
IT ALISE, founded 1994, is one of the largest IT service companies in the Baltic States with offices in Riga and Tallinn. IT ALISE customers are leading enterprises and public sector entities in the region. www.it-alise.com
For further information:
Ari Vanhanen, President
Telecom & Media, TietoEnator
+358 500 432 830
Berth-Ola Sundbom, Vice President
Telecom & Media (Telecom Operators),
+46 70 5845 550
Elmars Gengers, Chairman of the Board
IT ALISE, +371 703 00 00
Jurgis Kirsakmens, Marketing Director
IT ALISE, +371 703 00 00
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