Data Respons ASA has today signed an agreement to acquire 100% of the shares in Donat group GmbH (“DONAT”), a German R&D Services company headquartered in Ingolstadt with 140 employees. The company is a leading niche provider of software solutions and specialist services within software development and architecture, system integration and test management as well as business critical R&D IT services (DevOps).
– With this transaction, we continue to strengthen our position in Germany, which is the largest industrial market in Europe and strategically important for Data Respons. Digitalisation and connection of vehicles, transformation of powertrains, increasing environmental- and security requirements are challenging the automotive industry to innovate at a faster pace than before. In order to keep up, the industry is investing heavily in advanced software and data-driven tools supporting an efficient development and testing of new platforms. DONAT’s deliveries are highly specialised software services and represents a business-critical part of the customer’s development process for some of Germany’s leading automotive brands, says Kenneth Ragnvaldsen, CEO of Data Respons.
– We are looking forward to becoming part of Data Respons. We share the same technology profile and culture. Both companies provide specialist services and develop niche software solutions in close cooperation with our industry leading customers. At DONAT, we focus on recruiting the best talents with a passion for technology and working in multidiscipline teams, says Hans Donat jr., CEO of DONAT.
– We are pleased to welcome DONAT into the Data Respons family. We have already identified several synergies with our German group companies in relation to both customer structure and competence sharing. Together we are better equipped to become a complete technology partner for our customers and contribute to the increasingly automated, digitalised and connected solutions, Ragnvaldsen concludes.
DONAT had a turnover of EUR 9.2 million and a total EBIT of EUR 0.5 million in 2018. DONAT expects good growth in 2019 and significant improvements in profit due to non-recurring items in 2018. The company has no net interest bearing debt at closing. The company will be consolidated into Data Respons’ consolidated financial statements from July 2019. Total transaction costs are estimated to NOK 5.5 million, which will be recognised in the third quarter 2019.
The consideration for the transaction has two parts. The first part is a cash consideration of EUR 8.5 million which was paid today at closing of the transaction. The second part is an additional amount (earn-out) which will be paid out based on a positive development in the company’s EBIT in the current and over the next three financial years (2019, 2020, 2021 and 2022). Earn-out payments will be due in the second quarter of the year following the respective earn-out year. The maximum total consideration will not exceed 7 times the average EBIT of the current and the next three financial years.
For further information:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, tel. +47 913 90 918.
Rune Wahl, CFO, Data Respons ASA, tel. + 47 950 36 046
About Data Respons
Data Respons is a full-service, independent technology company and a leading player in the IoT, Industrial digitalisation and the embedded solutions market. We provide R&D services and smarter solutions to OEM companies, system integrators and vertical product suppliers in a range of market segments such as Transport & Automotive, Industrial Automation, Telecom & Media, Space, Defense & Security, Medtech, Energy & Maritime, and Finance & Public Sector.
Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT), and is part of the information technology index. The company has offices in Norway, Sweden, Denmark, Germany and Taiwan. www.datarespons.com