AddNode acquires CAD-Quality in Sweden and Norway
" AddNode is acquiring CAD-Quality i Sverige AB in Sweden and CAD-Quality i Norge AS in Norway, jointly referred to below as the "CAD-Q companies."
" The CAD-Q companies are the Nordic region's leading supplier of model and drawing based IT solutions and work with implementation of software, training, support and IT support of CAD systems for the building and civil construction, facility management and manufacturing sectors. The CAD-Q companies were established in 1989 and currently have some 110 employees in 15 offices in Sweden and Norway.
" After completion of the acquisition, the Group's pro forma net sales for the period from January 1 to September 30, 2005 will amount to about SEK 590 M, with pro forma earnings before depreciation and write-downs of intangible fixed assets of SEK 58 M. The number of employees according to the pro forma accounts was about 500 persons at September 30, 2005.
" The acquisition is not expected to have any significant effect on the Group's operating income for the current year but is expected to have a positive effect on earnings next year.
" The CAD-Q companies' operations will supplement AddNode's Industrial business area through their broad Nordic presence, large customer base and in-depth expertise in systems for design, construction and drawing. The Industrial business area's sales are expected to increase by some SEK 200 M annually. The expansion of these operations is in line with the Group's goals and growth strategy.
" The acquisition is being financed through a non-cash issue of at most 4,000,000 Series B shares in AddNode, corresponding to a dilution effect of at most 19 percent of the total number of shares. An earnings-based supplementary purchase sum may be paid. The acquisition includes liquid funds of some SEK 17 M. The acquired companies' interest-bearing assets exceed interest-bearing liabilities by about SEK 5 M.
" The Board of Directors of AddNode will convene an extraordinary meeting of shareholders on November 24, 2005 for a decision on the share issue. Shareholders representing a total of more than 64 percent of the voting rights in AddNode have announced that they will vote for the acquisition and the new share issue.
"AddNode continues to play an active role in the consolidation of the IT industry through the acquisition of the CAD-Q companies. The acquisition creates opportunities for increased earnings potential and an expanded service offering with a broad and stable customer base in the Industrial business area," says Bo Strandberg, President and CEO of AddNode.
