CCC and Webmedia to merge, creating software development leader
HELSINKI, Finland, 16 May 2011 CCC Corporation Oy and Webmedia Group AS have merged as the leading software provider in the Baltics and Finland. The consolidated company aims to double its revenues in three years.
“Because of its long-term experience and strong customer base, CCC is a suitable partner for Webmedia. CCC is a well-managed and profitable company with a strong balance sheet and good growth prospects”, says Priit Alamäe, co-founder and CEO of Webmedia Group.
“With Webmedia we can serve our customers even better. Together we are able to deliver even larger software projects and a larger product portfolio”, says Jorma Kallio, CEO of CCC. Kallio considers it possible that CCC may have to recruit more staff in the near future. There is no need to reduce the workforce because the merging companies have no overlapping activities.
CCC and Webmedia will continue to function under their current names and organizational structures. The estimated combined revenues of the merged companies for 2011 will be 40 m EUR and their operating profit 4 m EUR.
The new corporation will be owned by Enterprise Investors, one of the largest venture capital investors in the Central European region, Priit Alamäe and other members of the Webmedia and CCC management teams. Keva, which is responsible for funding the earnings-related pension cover of Finnish municipal sector employees, has also invested in Enterprise Investors.
Strong provider of software solutions
CCC is able to provide larger, more agile software projects with close to 600 software specialists in the merged company. CCC can now deliver new solutions developed by Webmedia to customers in the public administration and business sector.
The two companies have know-how from different vertical markets, so they complement each other perfectly. CCC is a strong provider in industrial production and materials management. Webmedia excels in finance, healthcare and telecom sectors, among others. The merged company is the leading software development provider for public administration in Finland and the Baltics. About half of the company’s revenues come from the public sector.
Webmedia estimates it has delivered about half of Estonian public administration e-solutions and portals in use today. With Estonia being one of the leading information societies in the world, Webmedia is clearly among the forerunners in public sector solutions.
“The experience Webmedia has had in developing both back-end systems and e-services will be of great use to our clients from the public administration and business sector”, says Jorma Kallio.
The intention to create new e-services is a part of the Finnish information society strategy, so there is a real need for Webmedia’s experience. CCC already has several customers from the public sector, the Finnish Tax Administration and the National Board of Patents and
Registration of Finland, to name but a few. CCC will introduce different Webmedia solutions to the Finnish market, with the initial focus on the Webmedia eHealth Platform and StaffLogic, a workforce optimization and advanced scheduling platform. Both companies are relying the same core technologies (SharePoint, .NET, Java and open source) and the shared competence enables the smooth introduction and support of Webmedia solutions. The shared competence base also makes it easier for them to allocate resources to development projects and further improve internal efficiency.
A lot in common
CCC and Webmedia are strong providers of business critical applications, building long-lasting customerships and partnerships. CCC has experience from customerships lasting more than 20 years. “I am sure we will access extra power from the young professional Webmedia team. Similarly, we can contribute our long-term business experience to Webmedia”, says Jorma Kallio of CCC.
Webmedia and CCC are employers that look after their employees. Webmedia has been awarded twice for being the best company to work for in Estonia by the local media and Ministry of Social Affairs, in 2008 and 2010. CCC considers human capital as the most important resource for a specialist organisation. Over the years, CCC has put considerable investment into developing the professional skills as well as the general well-being of their employees.
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