STOCKHOLM, Sweden, Jan. 13, 2004 (PRIMEZONE) -- Framfab AB has reached agreement with a majority of the shareholders of Paregos Mediadesign AB, to acquire Paregos headquartered in Stockholm. Framfab is negotiating to acquire the remaining shares, but Framfab retains the right to terminate the agreement should negotiations prove unsuccessful.
The acquisition is consistent with Framfab's strategy to consolidate the interactive media and Internet consulting sectors in Europe.
"Paregos has good positioning in the digital branding sector and is one of the Swedish market leaders," says Jesper Andersen, Managing Director of Framfab in Sweden and Denmark. "The acquisition will strengthen Framfab in Sweden, particularly in Stockholm."
Steve Callaghan, CEO of Framfab AB adds, "our Mergers and Acquisition strategy is based upon some straightforward criteria: we want to combine with profitable businesses which have strong international client bases. In addition, we look for consistency with Framfab's core competencies, and geographic footprint. The Paregos deal stacks up in every department."
Paregos, which posts annual sales of more than 16 million kronor, showed solid profitability for full-year 2003. Paregos draws its client base from large international companies such as Swedish Match, SEB, Mitsubishi, and Telia. As part of the Framfab group Paregos will maintain its branding in the marketplace.
"Becoming part of Framfab is a positive development for our clients, partners and employees," says Krister Mossberg, CEO of Paregos Mediadesign AB.
Based on an acquisition of 100% of the shares in Paregos, the transaction is valued at 13 million kronor, of which 9.5 million kronor is to be paid upon closing. Depending primarily on Paregos's financial performance in 2004, the remainder of the purchase price, a sum of between 0.8 and 5.5 million kronor, will be paid during the first quarter of 2005. The acquisition does not affect Framfab's net liquidity. Framfab's board has proposed financing the transaction by means of a special issue of new shares. Both the acquisition and the share issue are conditional upon approval by an extraordinary general meeting of Framfab shareholders scheduled for January 27, 2004. Expectations are that the acquisition will be completed in January 2004.
About Framfab: Framfab is a leading European specialist in digital media solutions and communication based on Internet technology. Most of Framfab's customers are large international companies, including 3M, American Express, AXA, Carlsberg Breweries, Cheltenham and Gloucester Building Society, the Coca-Cola Company, Danske Bank, DuPont, Ericsson, Hydro Texaco, Kellogg's, Kraft Food International, Lloyds TSB, Nike, Nobel Biocare, Observer, Philip Morris International, Philips, Postbank, SAAB, Sara Lee Douwe Egberts, Vodafone, Volvo Car Corporation, Volvo Group and UBS. Framfab operates in Denmark, Germany, the Netherlands, Sweden, Switzerland, and the UK. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For more information, please visit www.framfab.com.
About Paregos:
Paregos was founded in 1994. Since the late 1990s, the company has established itself as a Swedish market leader in digital communication and has become one of the Sweden's most acclaimed web agencies. Paregos focuses on web, mobile and in-store media. Among the company's clients are Canon, Mitsubishi, Telia, the Premium Pension Authority (PPM), and Eniro. For additional information, go to www.paregos.se
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