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Tieto to pick up Evry in NOK 13bn deal
Posted on Tuesday, 18 June 2019 10:03
Finland-based technology company Tieto has agreed to acquire Norwegian rival Evry in a cash and stock transaction that values the consultancy firm at NOK 13.16 billion (EUR 1.51 billion).
Under the terms of the transaction, the buyer is offering NOK 5.28 in cash and 0.12 new shares for every one item of stock held in the target.
Tieto is bidding a total NOK 35.48 apiece - based on its last closing price on 17th June and the 44.30 million new scrips being issued as part of the deal - this represents a 15.4 per cent premium to Evry’s last trading price of NOK 30.70 yesterday.
Following closing, expected in either the fourth quarter of 2019 or the first quarter of 2020, shareholders in the Oslo-listed firm will hold about 37.5 per cent of the combined company.
Together, the two businesses will create a digital consultancy group with 24,000 employees and annual revenue of around EUR 2.90 billion.
Once completed, the net debt to earnings before interest, taxes, depreciation and amortisation ratio will temporarily increase to above 2.0x.
Tieto has obtained financing for the deal from Nordea Bank and Skandinaviska Enskilda Banken, including EUR 300.00 million bridge loan facility and EUR 400.00 million term loan facility.
With Evry, the acquiror will come the leading digital services and software company in the Nordic region (Sweden, Norway and Finland) with EUR 327.00 million in combined pro forma adjusted earnings before interest and tax for fiscal 2019.
People with information on the two businesses told Reuters that Tieto has been interested in buying the target for years and considered tabling an offer back in 2014.
Closing still remains subject to approval from both sets of shareholders and competition authorities, with meetings expected to take place in September last year.
© Zephus Ltd