Engineering Ingegneria Informatica SpA and F-Net AG, a German stock corporation with its registered office in Stuttgart, yesterday evening, on May 11, 2016, executed the agreement for the sale and the transfer of 51% of DST shares Consulting GmbH ("DST") and EMDS GmbH ( "EMDS"), two wholly owned subsidiaries of F-Net AG, to Engineering.
The seller, F-Net AG, will continue to be a shareholder with 49% to support the development and integration of the two companies.
Engineering Ingegneria Informatica SpA at the closing date will make a payment for the 51% of a preliminary price of about 9.5 million euro. The commitment to purchase a further 15% of the two companies, DST and EMDS, will occur during the year 2017 according to the occurrence of certain economic performance.
The transaction will be concluded with the creation of a NewCo 51% owned by Engineering and 49% by F-Net, to which will be conferred the respective shareholdings in the two companies DST and EMDS.
The transaction is subject to the fulfillment of certain conditions, including merger clearance, between the date of signing and the closing which is envisaged for the end of the month of June 2016. The purchase will be made using cash.
The operation is part of the expansion strategy in foreign markets Engineering wants to implement thanks to the M&A.
The integration between Engineering and the two companies, DST and EMDS will enable the realization of synergies and strong growth in the German market activities.
Paolo Pandozy - CEO of Engineering - said: "I am very satisfied to announce today a strategic partnership aiming at developing the Engineering Group offer in the German markets. The two companies will develop an integrated range of services starting from the respective market specializations".
Peter Eisenbacher - CEO of F-Net AG - said: "I am excited about the potential of this strategic partnership with Engineering. Knowing Engineering’s capabilities for some years I know that together we will be able to deliver a significant impact in the German IT market".
The F-Net Group AG is an independent group founded in Germany in 2007, specialized in consultancy and Information Technology sector.
DST Consulting GmbH is a company specialized in IT system integration with over 10 years of experience and marked by a continuous growth of activities.
EMDS GmbH is an innovative consulting firm that offers its customers an active and continuous support in reshaping and re-implement their business strategies.
The two companies, DST and EMDS, employ about 300 people with a turnover of about 35 million Euro.