Brief: NNIT A/S Acquires Excellis Health Solutions For An Upfront Payment Of $29.4 Mln

Nnit A/S

09/11/2020 16:31

Nov 9 (Reuters) - NNIT A/S  NNIT.CO :
    * REG-NNIT A/S: 12/2020 NNIT ACQUIRES EXCELLIS HEALTH
SOLUTIONS
    * SIGNED AN AGREEMENT TO ACQUIRE EXCELLIS HEALTH SOLUTIONS,
LLC.
    * WILL ACQUIRE 100% OF SHARES OF EXCELLIS FOR AN UPFRONT
PAYMENT
OF USD 29.4 MILLION
    * AGREEMENT CONSISTS OF AN EARN-OUT ELEMENT BEING REALIZED
UNTIL
END OF 2023, WHICH AT TARGET IS USD 12.6 MILLION, DEPENDING ON
PERFORMANCE
    * EXCELLIS WILL BE NAMED "EXCELLIS HEALTH SOLUTIONS - AN
NNIT
GROUP COMPANY"
    * NO EXTERNAL EQUITY OR DEBT FINANCING WILL BE NEEDED
    * FOLLOWING ACQUISITION, EXCELLIS WILL IN DAILY OPERATIONS
CONTINUE ITS CURRENT BUSINESS, WHILE WORKING TOGETHER WITH NNIT
    * NNIT- ACQUISITION EXPECTED TO GENERATE ADDITIONAL REVENUE
IN
LAST 2 MONTHS OF 2020 OF AROUND DKK 16 MILLION CORRESPONDING TO
ABOUT 0.5PP GROWTH IN 2020
    * NNIT WILL FINANCE ACQUISITION THROUGH ITS OPERATING CASH
FLOWS
AND EXISTING CREDIT FACILITIES
    * SEES FY 2020 REVENUE GROWTH AROUND -7.5% IN CONSTANT
CURRENCIES
    * SEES FY OPERATING PROFIT MARGIN BEFORE SPECIAL ITEMS OF
AROUND
6% IN CONSTANT CURRENCIES
    * FOR FY 2020, EXCELLIS IS EXPECTED TO GENERATE REVENUE OF
AROUND
DKK 110 MILLION, NORMALIZED OPERATING PROFIT OF AROUND DKK 19
MILLION
    * IN 2021 EXCELLIS REVENUE IS EXPECTED TO GROW 15-20% WITH
AN
OPERATING PROFIT MARGIN AT SAME LEVEL AS IN 2020

Source text for Eikon:  ID:nGNEwX3Ww 
Further company coverage:  NNIT.CO 

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