The fixed acquisition price amounts to NOK 70 (approximately EUR 8.7) million and additional price NOK 15 (EUR 1.8) million at maximum. Both fixed and additional price will be paid in cash on closing date. Basware finances the acquisition with a bank loan.
The acquisition is subject to the approval of the Norwegian competition authorities and the transaction is expected to be closed in 2008, after the necessary approvals from authorities have been received. Basware will announce more information about the final acquisition price, expected synergy benefits as well as financial guidance related to the acquisition on closing date.
Contempus was part of Component Software Group ASA which Affecto acquired in 2007. On June 30, 2008, Contempus had 55 employees and a net cash position of approximately NOK 17 (approx. EUR 2.1) million and it is estimated that there has been no substantial change to those by the time of the acquisition. In 2007, Contempus generated revenue of NOK 69.3 (approx. EUR 8.7) million and EBITA of NOK 6.8 (approx. EUR 0.85) million. The growth of net sales in the first half of 2008 has been 28% compared with the first half of 2007.
Contempus has over 17 years of experience in the development and implementation of electronic document management solutions and the operations are focused around its proprietary Contempus software products. The company has service organisations that distribute, implement and maintain the installations in Norway and Sweden. It has established a new fully owned subsidiary, Contempus UK Ltd, in 2008, serving both customers and partners in the UK. Furthermore, the company has partners in the US and Benelux countries to cover international markets.
"The acquisition strengthens Basware's position in the Enterprise Purchase to Pay markets in Norway, Sweden and the United Kingdom. Additionally, we will gain valuable expertise to improve our competitiveness," says Hannu Vaajoensuu, Chairman of the Board, Basware Corp.