Enea to Divest Software Development Services Business
Enea AB has signed an agreement to divest its Software Development Services business to AROBS Transilvania Software (AROBS), a leading provider of software development services and a public company headquartered in Romania. The divested business includes approximately 160 employees, who deliver software development and IT services to customers mainly in Europe and North America, across a range of industries such as medical technology, maritime, and embedded devices.
“The divestment of Software Development Services enhances our focus as a specialist in software products for telecom and cybersecurity. The market for 5G and advanced cybersecurity is entering an exciting phase, and we see opportunities to challenge established competitors and win market share,” says Jan Häglund, President and Chief Executive Officer at Enea. “The divested business will leverage AROBS’ significant international services organization to deliver further value to customers across multiple domains.”
Software Development Services has operated as an independent business within Enea. Following the divestment, AROBS takes over the responsibility for Enea’s customers in this area and becomes a provider of software services to Enea.
"AROBS has been providing expert software development and IT services for more than 20 years to a broad range of industries, which gives us the possibility to ensure continuity and offer broader services to Enea’s customer base,” says Voicu Oprean, Founder and Chief Executive Officer at AROBS. "We welcome the Enea software services team to AROBS and value their experience, which will be a great complement to AROBS' software services and embedded technology business line.”
The transaction entails a divestment of 100 percent of the shares in Enea Software AB’s wholly owned subsidiary Enea Services Romania SRL at an enterprise value of EUR 17.9 million on a cash and debt free basis, including normalized working capital. The divested company will operate under the AROBS brand following completion of the transaction. In 2021, the Enea Software Development Services business generated SEK 113 million in net sales (GAAP) and contributed with SEK 20 million in operating profit (pro forma).
Upon a successful closing, the transaction will increase the net result for Enea with approximately SEK 115 million. The purchase price will be paid in cash. The transaction will strengthen Enea’s financial position and have a positive impact on the gross margin of the company. Subject to customary closing conditions, the transaction is expected to close during the second quarter 2022.
Transaction costs are estimated to approximately SEK 11 million, including the separation process and operational realignment as a consequence of the divestment.
Invescom Corporate Finance has acted as M&A advisor and Popovici Nitu Stoica & Asociatii as legal adviser to Enea in this transaction.
Jan Häglund, President and Chief Executive Officer
E-mail: [email protected]
Ola Burmark, Chief Financial Officer
E-mail: [email protected]
Enea is one of the world’s leading specialists in software for telecommunications and cybersecurity. The company’s cloud-native products are used to enable and protect services for mobile subscribers, enterprise customers, and connected devices. More than 4.5 billion people rely on Enea technologies in their daily lives.
Enea is headquartered in Stockholm, Sweden, and is listed on Nasdaq Stockholm.
For more information: www.enea.com
AROBS Transilvania Software is the largest tech company in Romania listed at the Bucharest Stock Market. AROBS provides software services and solutions in various industries, with about 70 customers of the Software Services business line located in Europe and America, and more than 10.000 customers of the Software Products business lines, from Europe and Asia. AROBS is present in 10 locations in Romania and 7 abroad, and hundreds of AROBS specialists build the solutions of the future in the automotive, embedded, clinical trials, travel, IoT, Fintech, and Enterprise solutions.
More about the AROBS Group: www.arobs.com