MALMO, Sweden, March 10, 2005 (PRIMEZONE) --
-- Telelogic has decided to issue 18 million shares and raises
SEK 296 million
-- Purpose of the new issue is to strengthen the financial position
to allow for continued acquisition-driven expansion
-- The new issue expands the ownership base of international and
Swedish institutional investors
The Board of Telelogic (Stockholm Exchange:TLOG) has today decided to issue 18 million shares in a directed new issue. Through the new issue Telelogic raises SEK 296 million before issue costs. The shares have been subscribed for by Swedish and international institutions outside Telelogic's current ownership base, thus diversifying the company's ownership base. The issue has been made utilising a mandate from the AGM 2004.
The capital raised will be used to strengthen Telelogic's financial position and allow for continued expansion in line with Telelogic's long term strategy to expand their operations fivefold in the next five years. Telelogic has during the period 1998-2004 increased its turnover from SEK 179 million to SEK 1039 million. The strong growth has been achieved organically through successes with Telelogic's own products, and through acquisitions. Large acquisitions include QSS and Continuus.
Telelogic has created an integrated development environment that has been successful on the market compared to competitors. However, lately, competition has intensified. A number of acquisitions and mergers among the competitors have resulted in substantially larger and financially stronger competitors compared to the situation a few years back. To meet this competition and to maintain a leading market position and high profitability going forward, the Board of Directors of Telelogic will prioritise growth, and a strong financial position is a prerequisite for this.
"The market consolidation is an ongoing process and Telelogic sees two alternative routes. We can either acquire or be acquired" says Anders Lidbeck, President & CEO of Telelogic. "Telelogic has succeeded in reaching a very strong global market position and we expect to generate better value for our shareholders by leading the consolidation. We have already grown the company fivefold with good profitability and we will continue on that route."
The new issue increases the number of shares by 18,000,000 from 217,629,780 to 235,629,780, of which the newly issued shares account for 7.6 percent. The share capital increases by SEK 180,000. The new shares are issued at SEK 16.45. The new issue was placed by Enskilda Securities.
About Telelogic Founded in 1983, Telelogic(R) is a leading global provider of solutions for advanced systems and software development. Telelogic's intuitive, best-in-class software tools automate and support best practices throughout the application lifecycle, leaving development teams free to concentrate on core competencies and apply their skills and energy to value-added tasks. By optimizing each phase of development, Telelogic enables companies to deliver higher quality systems and software with greater predictability, reduced time-to-market and lower overall costs.
To ensure interoperability with third-party tools, Telelogic's products are built on an open architecture and standardized languages. As an industry leader and technology visionary, Telelogic is actively involved in shaping the future of advanced systems and software development by participating in industry organizations like ETSI, INCOSE, ITU-T, OMG and others. Headquartered in Malmo, Sweden with U.S. headquarters in Irvine, California, Telelogic has operations in 17 countries worldwide. Customers include Alcatel, BAE SYSTEMS, BMW, Boeing, DaimlerChrysler, Deutsche Bank, Ericsson, General Motors, Lockheed Martin, Motorola, NEC, Nokia, Philips, Siemens, Thales and Vodafone. For more information, please visit www.telelogic.com
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