Ciber acquires majority stake in Novasoft

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Novasoft today announced that CIBER Inc., a US-headquartered IT-Consulting company bought a majority of the Novasoft shares. CIBER signed an agreement with the two founders and sole members of the board to acquire their 64.2 % stake in the company. Novasoft will therefore be a part of the CIBER-world for the future. CIBER will undertake a compulsory offer to all minority, public-shareholdings in approximately five weeks after the closing which is anticipated in approximately 7 to 10 days. The transaction is valued at 3.52 Euro per Novasoft share.

CIBER and Novasoft intend that Novasoft will build the SAP competence center within the CIBER group. As a result Novasoft will continue to work for their international clients with the focus on SAP-consulting and strengthen the position on the market due to the power of a group with more than 8,000 employees around the world

The founders of Novasoft decided to take that further step to be even better prepared for the changing demand of the IT-Services market. During the last year there was a strong tendency to concentration on that market and there have been numerous M&A activities taking place. This has been developing against the background of the requirements of the customers to fulfill the increasing demand in the area of IT-Infrastructure and Services from even less suppliers. In this context the requirements for the portfolio of an IT-Consultant have been enormously increasing. There is demand for e.g. strategy and management-consulting, industry-knowledge, support of running systems, outsourcing and worldwide local consulting combined with low-cost offshore development in addition to the classical SAP implementation.

Novasoft can cover this requirements in a perfect way in combination with CIBER. Novasoft has about 15 years of experience in the implementation of SAP-software especially in the Retail/Consumer products, Chemistry and Pharmaceuticals as well as Automotive-industry but also in some other industries. More than 65 % of revenue is achieved abroad predominantly in Europe. A majority of the customers are big international companies.

From a regional point of view Novasoft concentrates on the UK , Germany, Spain and Finland. Besides the UK there is no regional overlapping with CIBER whichs European activities are in Denmark, the Netherlands, Norway and Sweden. The majority of the CIBER business is conducted in the US however.

We are very pleased to announce Novasofts pending combination with CIBER. We have worked hard over the last few years to find the appropriate time and company to enter the German marketplace. With Novasoft, we not only think the time is right and the scale and reputation of their German operations are excellent, but we also get many other advantages: a significant U.K. blue-chip SAP practice (to work alongside our recent Ascent Technology Ltd. merger and its SAP SME practice), operations in Finland, Spain and Asia, additions to our current U.S. SAP practice, an Eastern Europe foothold in Prague, and vertical expertise in several SAP product lines. All of this nicely complements our Netherlands SAP practice and other European operations without any overlap, said Mac Slingerlend, CIBERs President and Chief Executive Officer.

Terje Laugerud, CIBERs European CEO, added, This transaction significantly rounds out our strategic go-to-market programs for Europe. We now will have approximately 1,300 employees in nine European countries. We are obviously now a major player o the continent and in the U.K. for SAP, Sage products and bespoke IT systems for several industries and the government sector.

CIBER was the right company at the right time for Novasoft, said Dr. Laszlo Gotthard, Co-Chief Executive Officer of Novasoft. George Konrad and I have grown Novasoft for 15 years. We became publicly held in 1999 and are operating in several countries. Merging with CIBER provides us the necessary scale to extend our vertical expertise to more clients in more countries.

We have found CIBERs management to be culturally a very good match to our own, which should make our employees and clients happy as well, added Dr. Konrad.

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