STOCKHOLM, Sweden, March 21, 2002 (PRIMEZONE) -- WM-data Ellips, which is active in the utility sector, is currently owned by Sydkraft AB, with a 65% interest, and WM-data AB, with a 35% interest. Now WM-data is to acquire an additional 25% of the shares, making it the majority owner of the company. For WM-data, the transaction represents a venture into a new sector with a focus on energy, the environment and water.
WM-data Ellips is one of the leading suppliers of IT services in the Swedish utility sector, which comprises the subareas energy, environment and water. The company had sales of approximately SEK 300 M in 2001, with some 250 employees. The company's offering comprises complete and integrated solutions based on standard software, customized system solutions, advanced consulting services and data services. Customers outside the Sydkraft Group currently account for around 50% of sales.
"I am convinced that WM-data Ellips will develop more rapidly as a subsidiary within an IT group," said Anders Palsson, head of Sydkraft's Consulting and Contracting business sector and Board chairman of WM-data Ellips. "We believe that this deal will strengthen the company's resources in terms of skills and know-how, which in turn will greatly benefit Sydkraft in the future."
WM-data Ellips will provide the platform to enable WM-data to become active in a new sector. The Nordic market for utility solutions is estimated to amount to more than SEK 2 billion, and is expected to show solid growth during the next few years. The aim is to further strengthen WM-data's position in this market.
"WM-data Ellips already has a strong position in the utility sector, and we see excellent prospects for further expansion. Ellips's product portfolio and know-how are competitive strengths, and the need for investment in IT development has increased since the industry was deregulated," noted Crister Stjernfelt, CEO of WM-data.
Payment for the acquired shares will be in the form of 1773 000 newly issued Series B shares in WM-data AB, which represents a dilution of less than 1%. The transaction is contingent on approval from the competition authorities, as well as approval at WM-data's Annual General Meeting of a motion to authorize the Board of Directors to issue shares in accordance with the proposal to be presented to the Meeting.
Sydkraft has an option to sell, and WM-data an option to buy, the 40% of the shares in WM-data Ellips that Sydkraft will still own after the transaction, and these options may be exercised in spring 2006.
WM-data is one of the Nordic area's leading IT companies. Group sales amounts to SEK 7,500 million and the number of employees are now approximately 7,000. WM-data's business concept is to provide "customer benefit through a complete range of IT-related services." And that means that WM-data offers solutions in all areas of information technology. For more information, visit the company website at www.wmdata.com.
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