31.08.2016
DATAGROUP AG DE000A0JC8S7
DGAP-News: DATAGROUP AG: Over 300 IT specialists are coming to DATAGROUP
DGAP-News: DATAGROUP AG / Key word(s): Mergers & Acquisitions
DATAGROUP AG: Over 300 IT specialists are coming to DATAGROUP
31.08.2016 / 07:35
The issuer is solely responsible for the content of this announcement.
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Over 300 IT specialists are coming to DATAGROUP
Pliezhausen, 31 August, 2016. Exactly ten years after its IPO in September
2006 DATAGROUP AG (WKN A0JC8S) initiates the next step of corporate
development. The IT service provider will take over 306 IT specialists from
Hewlett Packard Enterprise (HPE) in Germany on September 1. Accordingly,
over 92% of the original 332 HPE employees agreed to a transfer of
undertakings to DATAGROUP. The transaction is connected with a multi-year
major order from HPE, which will result in an increase in revenues of some
EUR 33m for the IT service provider already in the next FY 2016/2017.
"The very high rate of change of over 90% is a tremendous success for us",
comments DATAGROUP CEO Max H.-H. Schaber. "It was our goal to convince as
many as possible of these sought-after SAP and application management
specialists to participate in DATAGROUP's growth story. We are very pleased
that so many employees see attractive vocational and personal development
opportunities at DATAGROUP. While this transaction provides an excellent
basis for additional strong growth in the strategic core business segments,
it also sustainably improves our profitability."
An integral part of this deal is a guaranteed commitment from HPE to
purchase DATAGROUP's services in the area of SAP and application management
services. For these services, DATAGROUP will initially use the employees
taken over from HPE. This guarantees a full utilisation of the new
employees in the first year. In the subsequent years, the guaranteed
purchase volume will gradually decrease to some EUR 22m. Overall, the
contract has a guaranteed term of 64 months and the option to extend it by
another 20 months. The total volume of the delivery contract over the
maximum term of 7 years is c. EUR 180m.
DATAGROUP intends to leverage the resources that will gradually become
available to drive organic growth. The IT service provider also plans to
exploit additional synergies by standardising the services provided. To
this end, the delivery chains will be modified in the medium term,
analogous to DATAGROUP's established and ISO-certified CORBOX IT services,
the production processes will be changed from a time-and material-basis to
defined service level agreements.
"This transaction catapults us into the top tier of SAP and application
management service providers in Germany at one go", says Dirk Peters, COO
of DATAGROUP AG. "What is more, the new employees contribute interesting
competencies and extensive experience with customers, for example in
business intelligence and SAP Hana. As a result we can significantly
further develop the existing offers of CORBOX, our full outsourcing offer,
once more."
This is the 18th takeover for DATAGROUP since its IPO. The company's
integration of the new employees is based on the good practice of careful
integration and the guidelines "100 days DATAGROUP". A new subsidiary,
DATAGROUP Enterprise Services GmbH, was established for this purpose. It
takes over the employees and provides the services for HPE's existing
customers.
As DATAGROUP's current FY 2015/2016 will end on September 30, one month of
the revenue and earnings contributions generated with the new activities
will flow into the financial statements. Additionally, DATAGROUP can post a
one-time positive earnings effect caused by a negative purchase price, the
magnitude of which has not been disclosed by the parties. The deal's impact
on revenues and earnings has already been included in the managment's full-
year forecast.
About DATAGROUP:
DATAGROUP is a leading German IT service company. Over 1700 employees
(including the new specialists taken over from HPE) in locations across
Germany design, implement and operate IT infrastructures and business
applications such as SAP. With its product CORBOX, DATAGROUP is a full-
service provider, serving over 550,000 global IT workstations for medium
and large enterprises as well as for public-sector clients. In other words:
"We manage IT." The company is growing organically and through
acquisitions. The acquisition strategy is particularly noted for its
optimal integration of the new companies. DATAGROUP is actively
participating in the IT service market's consolidation process with its
"buy and turn around" and its "buy and build" strategy.
Contact:
DATAGROUP AG
Dr. Michael Klein
Investor Relations
Wilhelm-Schickard-Str. 7
D-72124 Pliezhausen
T +49-7127-970-059
F +49-7127-970-033
[email protected]
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31.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: DATAGROUP AG
Wilhelm-Schickard-Str. 7
72124 Pliezhausen
Germany
Phone: +49 (0)7127 970 000
Fax: +49 (0)7127 970 033
Internet: www.datagroup.de
ISIN: DE000A0JC8S7
WKN: A0JC8S
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart, Tradegate Exchange; Open Market (Entry
Standard) in Frankfurt
End of News DGAP News Service
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496959 31.08.2016
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