BASWARE CORP. STOCK EXCHANGE RELEASE SEPTEMBER 29, 2008
Basware Corporation's ('Basware') acquisition of the entire share
capital of Contempus AS ('Contempus') from Affecto has been endorsed.
The acquisition price amounts to NOK 83.6 million (approximately EUR
10.1 million, using exchange rate of EUR/NOK 8.27). Contempus was
part of Affecto's Norwegian operations and provides Purchase to Pay
as well as Enterprise Content Management solutions.
The acquisition strengthens Basware's market position in Norway,
Sweden and the UK as well as brings valuable expertise to Basware to
improve competitiveness. In addition Basware can extend its
distribution channel through existing Contempus' sales channel in the
United States and Benelux countries.
Synergy benefits can be reached by unifying the businesses as well as
by transferring to common infrastructure and common offices in Oslo,
Stockholm and Manchester. Cost savings will be realized starting from
the beginning of 2009 and they will be approximately EUR 3 million by
the end of 2009. One-off-items are approximately EUR 1 million and
they will all be realized in the fiscal year of 2008. The financial
figures of Contempus will be integrated into Basware as of October 1,
2008 and the profit of Contempus will be positive before
one-off-items. Basware's financial guidance for 2008 remains
unchanged and will be reviewed in the next interim report on October
14, 2008.
Contempus was part of Component Software Group ASA which Affecto
acquired in 2007. On June 30, 2008, Contempus had 55 employees and a
net cash position of approximately NOK 17 (approx. EUR 2.1) million
and it is estimated that there has been no substantial change to
those by the time of the acquisition. In 2007, Contempus generated
revenue of NOK 69.3 (approx. EUR 8.4) million and EBITA of NOK 6.8
(approx. EUR 0.82) million. The growth of net sales in the first half
of 2008 has been 28% compared with the first half of 2007.
Contempus has over 17 years of experience in the development and
implementation of electronic document management solutions and the
operations are focused around its proprietary Contempus software
products. The company has service organizations that distribute,
implement and maintain the installations in Norway and Sweden. It has
established a new fully owned subsidiary, Contempus UK Ltd, in 2008,
serving both customers and partners in the UK. Furthermore, the
company has partners in the US and Benelux countries to cover
international markets."The acquisition strengthens Basware's position in the Enterprise
Purchase to Pay markets in Norway, Sweden and the United Kingdom.
Additionally, we will gain valuable expertise to improve our
competitiveness," says Hannu Vaajoensuu, Chairman of the Board,
Basware Corp.
For further information, please contact:
Chairman of the Board Hannu Vaajoensuu, Basware Corporation, tel.
+358 9 8791 7250 or +358 40 501 8250
CEO Ilkka Sihvo, Basware Corporation, tel. +358 9 8791 7251 or +358
40 501 8251
BASWARE CORPORATION
Hannu Vaajoensuu
DISTRIBUTION
Helsinki Stock Exchange
Principal Media
www.basware.com