Cidron IT, a subsidiary of private equity fund Nordic Capital, has acquired IBM's 50.09% stake of EDB Gruppen A/S and has made a bid of approx. DKK 600m (USD 125.9m) to buy the remaining shares. EDB Gruppen is a Danish based IT company that supplies IT solutions and consultancy services for the Scandinavian market. According to a company press release, the board of directors of EDB Gruppen is unanimously recommending the offer.
Lars Bruhn, chairman of EDB gruppen says: "It is the board of directors' view that Cidron IT will make an excellent owner of EDB Gruppen. Cidron IT has presented clear plans regarding further development of the company and potential participation in industry consolidation, which will be beneficial to both staff and customers in the long term."
The plan is to increase EDB Gruppen's growth through acquisitions. Lars Terney, partner in Nordic Capital and head of its Danish operations says to financial daily newspaper Børsen:
"That can reduce earnings in the short term, but we believe that in the long term it will increase the company's position and value. It is appropriate to delist the company from the bourse [the OMX Nordic Exchange Copenhagen – Ed] and develop EDB Gruppen in the next three to seven years with an owner that has the financial strength and competence to accelerate the future expansion without consideration for short-term fluctuations in earnings."
EDB Gruppen was founded in 1977 and is headquartered in Herning, Jutland. The company has offices in a number of towns in Denmark, Norway and Sweden. EDB Gruppen employs 900 people and has approx. 4,000 customers.