SDS ACQUIRES ESERVGLOBAL HOLDING SAS
SDS AB has today signed an agreement to
acquire all shares and assets in eServGlobal Holding SAS (eServGlobal) with a
purchase price of two (2) million Euro (21.4 million SEK). eServGlobal SAS is a
global supplier of systems for electronic recharge of prepaid mobile phones and
mobile financial services. With this transaction SDS has doubled its
geographical presence and gained access to significant complementary
technologies.
eServGlobal is headquartered in Paris, France with its research
and development, customer support organizations and sales organizations located
in Paris, Grenoble, Bucharest, Dubai and Jakarta. More than 90% of its revenue
comes from the Middle East, North Africa and Southeast Asia markets. The
company had sales of 7.1 million in 2018 of which 4.3 million is recurring
support fees. The product portfolio includes software solutions for
distribution of recharge value for prepaid mobile phones and mobile financial
services.
The acquisition strengthens SDS operational efficiency by increasing
its product portfolio with complementary products from eServGlobal. At the same
time two new major development and technology centers in France and Romania
will be added.
"This is an important milestone in the growth of SDS as a
company. In one single step we have now moved to a new strategic level in terms
of size, revenue, profitability, customer base and geographical reach. SDS and
eServGlobal combined have nearly 50 years of experience in development,
delivery and operation of large-scale transaction systems. This acquisition
strengthens our presence in Africa and the Middle East further and at the same
time provides opportunities to reach new geographical markets with customers in
Southeast Asia," says Tommy Eriksson, CEO of SDS. A new phase of our journey to
attain sustained growth and profitability has now started and in the medium
term we expect to be able to increase the companys operations in Europe and
America as well"
Gunnar Jardelöv (Chairman of the Board of Directors of SDS)
further states that, "eServGlobal with its customer base, its employees, its
market position and product portfolio adds to and reinforces the current
business model of SDS. This acquisition constitutes a step in our strategic
ambitions to accelerate growth and profitability while actively contributing to
a structural consolidation in the industry ".
In a very short period of time
SDS has now executed two strategic transactions that increases the companys
annual turnover from approximately 80 million SEK to more than 250 million
SEK.
The merging of operations between the two companies is expected to
achieve significant synergies with high efficiency in product management and
development as well as economies of scale in support and administrative
functions. Significant business synergies in terms of profitability and growth
are expected to emerge as early as 2020 but the full effect would be visible in
2021.
We are pleased to have found a good home for eServGlobal with the
acquisition by SDS. We have worked hard to reshape the business into an asset
that now has greater value as part of a complementary entity within the SDS
organisation. This is good for our customers, and importantly should provide
better opportunity for many of our people who have worked hard to get the
company to this point. I wish SDS well in the future, says John Conoley,
Executive Chairman, eServGlobal.
The acquisition of eServGlobal will initially
be financed using an acquisition loan arranged by Handelsbanken and a bridge
loan from private investors including the Chairman of the Board Gunnar Jardelöv
and the newly appointed board member Martin Roos. The bridge loan is for a
period of 6 months from the date of the transaction. This bridge loan will
cover the period until a planned new rights issue is completed based on the
mandate the Board received at this years Annual General Meeting on April 25th.
The bridge loan has an annual interest rate of 15% and can be repaid in full or
in part in advance.
The completion of the acquisition process is conditional
of a formal approval at an EGM of eServGlobal. Such EGM is expected be held
within six weeks from today.
4 June 2019
For more information contact:
Martin
Schedin
Chief Financial Officer
+46 70 438 14 42
martin.schedin@seamless.se
mailto:martin.schedin@seamless.se
This information is the information that
Seamless Distribution Systems AB (publ) is required to disclose under the EU
Market Abuse Regulation. The information was submitted for publication through
the agency of the above contact person on June 4, 2019 at. 12.00 CEST.
The
following documents can be retrieved from beQuoted
Seamless Distribution
Systems Pressrelease
2019-06-04.pdf-http://www.bequoted.com/beQPress/download.asp?Id=26379
About
Seamless Distribution Systems AB (SDS)
SDS is a Swedish software company with
solutions for electronic distribution of services to private consumers through
mobile operators in emerging countries. The company offers its corporate
customers a comprehensive solution for digital transactions. The company has
customers in all parts of the world that reach over 300 million mobile users
through more than 1,000,000 active point-of-sales. SDS has approximately 150
employees in Sweden, Belgium, Ghana, Nigeria, USA, Pakistan, India, South
Africa, Ecuador and the United Arab Emirates. With over 18 years of experience,
SDS focuses on high level of customer satisfaction and effective development.
SDS manages over 5.3 billion transactions annually and enables the growing
population of emerging countries to become part of the mobile revolution.
SDS
shares are listed on Nasdaq First North Premier.
The companys Certified Adviser
is FNCA Sweden AB, telephone number 08-528 00 399. info@fnca.se
mailto:info@fnca.se
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