CANCOM SE — M&A Activity 2006

May 24, 2006

News Details

Ad-hoc | 24 May 2006 03:57

CANCOM IT Systeme AG acquires majority stake in NSG Netzwerk-Service GmbH

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— CANCOM IT Systeme AG acquires majority stake in NSG Netzwerk-Service GmbH Jettingen-Scheppach, Germany, 24 May 2006 – CANCOM IT Systeme AG has acquired economically 75.1 percent of the shares in NSG Netzwerk-Service GmbH. The acquisition is to take effect from 1 July 2006. The purchase price of EUR 6.0 million will be paid in cash. In this course of this transaction, Siemens Business Services GmbH & Co. OHG will be reducing its minority holding from 48.47 percent to 24.9 percent. CANCOM IT Systeme AG will also be given a call option which it may exercise until 2009 to acquire the remaining shares. Siemens Business Services GmbH & Co. OHG will be given a put option until 2009, depending on how NSG’s business develops. If the option is exercised, the remainder of the purchase price will depend on NSG’s future EBIT. It could be as much as EUR 2.5 million. NSG Netzwerk-Service GmbH, which is domiciled in Feldkirchen near Munich, is a provider of IT services and has 7 locations in Germany. In financial 2005 the company, which employs around 650 staff, generated sales of EUR 54.7 million and achieved a net result of EUR 1.3 million. The takeover will allow CANCOM to benefit from multiple synergies and will set the Group with a future number of approximately 1,300 employees on course for a substantial expansion in the German market for IT services. The Executive Board expects gross profits to double after NSG is included, with a correspondingly positive impact on net profits, especially from the 2007 financial year. The takeover is subject to review by the German Federal Cartel Office. Any questions should be directed to: Armin Blohmann Investor & Public Relations Phone: +49 (0)8225 996 1051 Fax: +49 (0)8225 996 4 1051 E-mail to: armin.blohmann@cancom.de (c)DGAP 24.05.2006 ————————————————————————— Language: English Issuer: CANCOM IT Systeme AG Messerschmittstraße 20 89343 Jettingen-Scheppach Deutschland Phone: +49 (0)82 259 96-1000 Fax: +49 (0)82 259 96-41051 email: ir@cancom.de WWW: www.cancom.de ISIN: DE0005419105 WKN: 541910 indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————