TeliaSonera’s subsidiary Cygate acquires Avansys
- 2008-04-03 06:00 UTC
Cygate, a TeliaSonera subsidiary specialising in systems integration, is acquiring Avansys AB in Sweden for SEK 120 million (enterprise value). The acquisition will strengthen Cygate in the business communications area with services such as server management, data storage and security services.
“Our business customers are increasingly demanding complete communications solutions, which puts heavier demands on our competence within telecommunication related systems integration services,” says Juho Lipsanen, Head of Business Services at TeliaSonera. “Cygate’s acquisition of Avansys will strengthen us further in this area.”
The transaction requires the approval of the Swedish Competition Authority.
“Avansys’s expertise and experience will create value for our customers, who will now gain access to a broader range of system integration services,” says Bengt Lundgren, CEO of Cygate. “Avansys’s strong presence in the fast-growing Öresund region (eastern Denmark and southern Sweden) will make us a market leader in the area.”
Avansys AB, established in 1999, currently has 85 employees. The company operates from offices in Malmö, Helsingborg and Kristianstad, Sweden, and had sales of SEK 177 million during 2006/2007 (split financial year). Over the past three years of operation, Avansys’s sales growth has averaged approximately 13 percent annually. Cygate will use the Avansys brand during a transition period.
“Cygate enjoys a fine reputation in system integration and we are convinced that the acquisition will be positive for our customers and our employees,” says Pelle Svensson, CEO of Avansys AB.
Since TeliaSonera acquired Cygate at the end of 2006, the company has operated as an independent subsidiary of the TeliaSonera Group. In 2007, Cygate purchased the Swedish systems integrator Dimension Data Sverige whose personnel and operations were successfully integrated with Cygate’s business within a very short period of time. Cygate operates from 16 locations in Sweden and Finland today.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 8.00 (CET) on April 3, 2008.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.