Know IT strengthens its position in Norway – acquires the IT-consultancy firm Reaktor AS
Published: 21 April, 2010
Know IT AB has signed an agreement to acquire Reaktor AS, a leading Norwegian IT-consultancy firm with operations in Bergen, Oslo and Stockholm. The company has around 100 employees and focuses on IT-solutions for the field of banking, finance and insurance. Reaktor develops self-service solutions and portals, as well as tailored IT-solutions. Reaktor also supplies services in market communication and IT maintenance and support. The acquisition means Know IT will grow to around 1,450 employees and strengthen its local presence on the Norwegian market.
Reaktor’s clients are mainly large and mid-sized companies, primarily in banking, finance & insurance as well as in retail and industry. Some of the larger clients are Skandiabanken, DnB Nor Bank, BMW Financial Services, Unison Forsikring and GE Money Bank.
Acquisition will be final as of May 2010. In 2009, the Reaktor Group showed an operating result (EBITDA) of NOK 22.8 million with net sales of NOK 103.8 million.
Know IT will initially acquire 53 percent of the shares in Reaktor AS. Over the coming 4 years, Know IT will acquire the remaining shares, divided equally over the years. The initial consideration totals approximately NOK 44.9 million. Payment will be made as shares in Know IT, on the condition that the annual general meeting gives such authority to the Board. The total price of each successive share acquisition will depend on Know IT’s market valuation and the results of the Reaktor Group.
– The acquisition of Reaktor means that we are strengthening our presence in Norway, partly thanks to gaining a local presence in Bergen, where the economy is developing fast. In addition, Reaktor strengthens our operations when it comes to both clients and services. The company has a long and very strong history and is similar to Know IT in terms of both business direction and corporate culture, says Anders Nilsson, CEO and President of Know IT.
– Together with Know IT, we are becoming part of a larger Nordic consultancy firm, where we contribute by broadening Know IT’s services and client base in Norway, in addition to providing a number of important frame agreements, a high billing ratio and high profitability. The companies complement one another well, both in competence and from a client perspective, says Henrik Lie-Nielsen, CEO of Reaktor AS.