NNIT A/S (“NNIT”), a leading provider of IT services and consultancy announces that it has signed an agreement to acquire SCALES Group Holding ApS and its majority owned affiliates (“SCALES Group”).
SCALES Group is a leading Danish-based consultancy with a fully dedicated focus on delivering state-of-the-art implementations of Microsoft Dynamics 365 ERP and CRM solutions (“Dynamics AX”). In 2016, SCALES Group generated revenue of DKK 116 million and currently has 113 employees in Denmark and Norway.
Today, NNIT entered into an agreement with the shareholders of SCALES Group to acquire 100% of the shares of SCALES Group for an upfront payment of DKK 122 million and an earnout payment of DKK 52 million at target and depending on performance.
The Board of Directors at NNIT and the selling shareholders of SCALES Group have unanimously approved the transaction.
Per Kogut, CEO of NNIT, comments: “I am excited to announce the acquisition of SCALES, and I very much look forward to welcoming them to the NNIT Group. SCALES and NNIT combined now cater for the entire ERP value chain, from outsourcing through application management, operation and further development of our clients’ ERP solution, Dynamics AX.”
Hasse Bergman, CEO of SCALES Group, comments: “We have great ambitions for the future. To continue to achieve our key strategic business priorities, we believe that joining NNIT is the right solution. Moreover, we see a great cultural fit between our two companies and we look forward to be part of the NNIT team.”
Transaction overview NNIT will acquire 100% of the shares of SCALES Group for an upfront payment of DKK 122 million. Further, the agreement consists of an earnout element, which at target is DKK 52 million and depending on performance.
Following the acquisition, SCALES Group will in daily operations continue its current business, while working together with NNIT on new business opportunities within larger projects and application outsourcing. SCALES will be named “SCALES, an NNIT Group company”.
NNIT will finance the acquisition from existing cash funds and its committed bank facility as well as from its holding of treasury shares. No external equity or debt financing will be needed.
Closing of the agreement is expected to be May 31, 2017 and SCALES Group is expected to be a part of NNIT from June 1, 2017.
Strategic rationale With the acquisition NNIT will supply a full stack offering for Dynamics AX spanning advisory, implementation and operations, including application and infrastructure.
SCALES Group’s deep knowledge, technical competencies and experience with Dynamics AX and particularly with the Dynamics 365 platform combined with NNIT’s ability to handle large Dynamics AX environments will ensure NNIT a powerful Dynamics AX offering. NNIT’s strong portfolio of Microsoft products, its ability and experience with integration as well as the company’s offshore capabilities, position NNIT uniquely as a leading Dynamics AX consultancy in the Danish market.
Further, the acquisition complements NNIT’s SAP capabilities creating an unrivalled Danish ERP house providing a full stack value proposition for the leading ERP solution providers in the Danish market.
https://erpnews.com/v2/wp-content/uploads/2017/05/Group-acquire-268x200-1.jpg200268webmasterhttps://erpnews.com/v2/wp-content/uploads/2018/10/[email protected]webmaster2017-05-18 00:00:002018-11-14 14:10:16NNIT A/S: 5/2017 NNIT acquires SCALES Group and changes outlook for 2017
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