Company announcement 9/2018 October 9, 2018 NNIT acquires fast-growing US company to accelerate delivery of IT services to the international life sciences industry and increases revenue outlook for 2018 NNIT A/S ("NNIT"), a leading provider of IT ...
October 9, 2018
NNIT acquires fast-growing US company to accelerate delivery of IT services to the international life sciences industry and increases revenue outlook for 2018NNIT A/S ("NNIT"), a leading provider of IT services and consultancy announces that it has signed an agreement to acquire Valiance Partners, LLC. ("Valiance Partners").
Valiance Partners is a computer software and services data migration company primarily for the life sciences industry. Established in 2003 and headquartered in New Jersey, US, Valiance Partners provide end-to-end data and content migration software solutions and services for IT, quality, validation and test management.
Today, NNIT entered into an agreement with the shareholders of Valiance Partners to acquire 100% of the shares for an upfront payment of USD 25.0 million and an earn-out payment of USD 10.7 million at target, depending on performance.
Per Kogut, CEO of NNIT, comments:
"Valiance Partners provides a perfect strategic and cultural match and I am excited to welcome this fast-growing company to NNIT. They come with a strong experience and have delivered migration services to many of the world's most successful pharmaceutical companies. Together we will strengthen our growth potential and the acquisition will boost NNIT as a global IT provider to the international life sciences industry."
Richard Higger, Founder and President of Valiance Partners, comments:
"We are excited to become part of the NNIT Group and continue our successful growth. With NNIT's experience in international life sciences, we see an opportunity to expand our successful business in additional markets. Our two companies have already collaborated on several projects and learned that we make a good fit."
NNIT will acquire 100% of the shares of Valiance Partners, LLC for an upfront payment of USD 25.0 million. Further, the agreement consists of an earn-out element being realized until the end of 2021, which at target is USD 10.7 million, depending on performance.
Following the acquisition, Valiance Partners will in daily operations continue its current business, while working together with NNIT on new and existing business opportunities. Valiance Partners will be named "Valiance Partners, LLC - an NNIT Group Company".
NNIT will finance the acquisition through its operating cash flows and existing credit facilities. No external equity or debt financing will be needed.
Closing of the agreement is expected to be November 1, 2018.
With the acquisition NNIT will strengthen its foothold as a leading IT services provider to the international life sciences industry. The demand for migration services has increased significantly over the past decade and Valiance Partners has become a leading migration partner to the life sciences industry. Our companies complement each other, combining Valiance Partners' migration solutions and references within international life sciences with NNIT's experience delivering advisory and other services to life science companies.
The addition of Valiance Partners' world-class data migration tools and services to NNIT's existing system integration methodology, positions NNIT as a leading implementation provider of highly complex Software-as-a-Service solutions to the life sciences industry.
About Valiance Partners
Headquartered in New Jersey, US. Valiance Partners is a computer software and services data migration company primarily for the life sciences industry. The company employs 60+ staff and independent contractors, located in its headquarters and the company's Dublin, Ireland office.
For the financial year 2017, Valiance Partners generated revenue of USD 9.8 million and normalized operating profit of USD 2.0 million equal to an operating profit margin of 20%. In 2018 revenue is expected to grow with more than 35% with an operating profit margin of around 24%.
Valiance Partners has managed more than 500 migrations for over 100 companies, including the world's leading pharmaceutical, medical device and biotechnology brands.
The acquisition is expected to generate additional revenue in the last two months of 2018 of around DKK 15 million corresponding to approximately 0.5pp growth in 2018. As a result, the outlook for 2018 in constant currencies is increased:
- Expected revenue growth is increased to be 4-7% in constant currencies (previously 3-6%)
- Expected operating profit margin is maintained at 10-10.5% in constant currencies
- The expected level of investments is maintained at 6-8% of total revenue and excludes the acquisition of Valiance Partners
NNIT will host a teleconference October 9, 2018 at 14:30 CET about the acquisition of Valiance Partners. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under 'Investors - Events & presentations'. Presentation material will be available on the website at the start of the presentation.
Conference call details
Webcast link: https://nnit.eventcdn.net/20181009
Participant telephone numbers:
Denmark: +45 3544 5583
United Kingdom: +44 203 194 0544
Sweden: +46 8 5664 2661
United States +1 855 269 2604
Contacts for further information
Klaus Hosbond Skovrup
Head of Investor Relations
Tel: +45 3079 5355
Tel: +45 3077 8141
NNIT A/S is one of Denmark's leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of June 30, 2018 NNIT A/S had 3,122 employees. For more information please visit//www.nnit.com.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NNIT A/S via Globenewswire
Source(s) : NNIT A/S
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