SDS COMPLETES THE ACQUISITION OF ESERVGLOBAL HOLDING SAS
SDS AB today
completes the acquisition of 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 revenues come from the Middle East, North Africa and Southeast
Asia markets. The company had sales of 7.1 million euro in 2018 of which 4.3
million euro is recurring 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.
The acquisition strengthens SDSs customer
base and footprint adding several important and respected global and regional
telecom operators such as Ooredoo Group, Zain Group and EITC (du Dubai). SDS
will handle and process annully more than 10 billion transactions, worth more
than 10 billion US Dollars.
"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 with operational
activities in more than 50 countries. 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"
The acquisition of eServGlobal have been financed by 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 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.
25 July 2019
For more
information contact:
Martin Schedin
Chief Financial Officer
+46 70 438 14
42
martin.schedin@seamless.se mailto:martin.schedin@seamless.se
The following
documents can be retrieved from beQuoted
SDS Pressrelease 2019-07-25
English.pdf-http://www.bequoted.com/beQPress/download.asp?Id=26679
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
more than 200 employees in Sweden, France, Belgium, Romania, South Africa
Ghana, Nigeria, United Arab Emirates , Singapore, Indonesia, Pakistan, India,
USA and Ecuador.
SDS, together with the added eServGlobal operations, will be
processing annually more than 10 billion transactions worth more than 10
billion US Dollars, facilitating monthly more than 2 million active points of
sales to sell digital products and serve more than 500 million consumers
globally.
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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