TietoEnator has acquired AttentiV Systems Group

Has acquired

TietoEnator, one of the largest IT services company in the Nordic countries has acquired AIM (Alternative Investment Market ) listed AttentiV Systems Group plc for £ 56.0 million (€82.2m).

TietoEnator of Finland is the largest IT services company in the Nordic countries, with close to 13,500 employees and annual net sales of about €1.5 billion. TietoEnator's shares are listed on the Helsinki Exchanges and Stockholmsbörsen, with a market capitalisation of approximately €2.15 billion. TietoEnator reported net sales of €1,525 million and pre-tax profit of €189 million in 2004.

TietoEnator has four vertical business areas: Banking & Insurance, Telecom & Media, Public & Healthcare and Production & Logistics. TietoEnator's Banking & Insurance business area is one of the leading suppliers in Europe of high-value-added IT services and solutions to top tier banks and the finance and insurance industry, with close to 1,900 employees and 400 customers worldwide, and generated revenues of €199 million in 2004.

AttentiV is an experienced provider of software solutions and associated services to the financial service sector in the UK and is listed on AIM. AttentiV provides software solutions and associated services to the financial services sector. AttentiV has two main product sets, Summit, which focuses on retail banking, and Portfolio, which focuses on organisations offering asset-backed finance products, personal loans and debt management. In addition to the sale of these two products, AttentiV derives revenue from the delivery of custom-built solutions. Following a successful £33 million share placing, AttentiV made its debut on AIM on 31 March 2004. In the year ending 30 September 2004 AttentiV's total revenue was £32.1 million and its operating profit was £3.2 million. AttentiV has approximately 350 employees.

The transaction forms a part of TietoEnator's strategy of expanding its Banking & Insurance business globally. This business has several customers among the top-tier UK banks, but does not currently have a significant local presence in the UK. The acquisition will give TietoEnator this presence along with the opportunity to build upon AttentiV's valued customer base. As AttentiV's products and TietoEnator's global banking solutions are to a large extent complementary, the combination of the two businesses will create a highly attractive offering to the entire UK banking industry.

TietoEnator expects to be able to generate revenue synergies as a result of the transaction. As part of the TietoEnator group AttentiV will be able to expand its current business more rapidly, particularly in the top-tier banking market, benefiting from TietoEnator's broad range of solutions and services. At the same time AttentiV will be able to expand its current business into areas where TietoEnator has particular strength, such as core banking, payments, cards and internet banking solutions, and additionally use TietoEnator's global organisation to promote its own solutions outside the UK.

TietoEnator also expects to create significant potential for AttentiV to expand its business through its service model "Core Application Modernisation Partnership", which combines long-term application management with component-based systems renewal.

"The acquisition of AttentiV, a well-established company with a strategic customer base, means that TietoEnator is establishing an excellent platform for further growth in the UK financial services market," says Mr Matti Lehti, President and CEO of TietoEnator. "Our aim is to continue the business operations of AttentiV with the current management team and product portfolio. We will integrate our existing UK banking solutions business with AttentiV and, supported by our strong IT services competency in general, we plan to extend the scope of our offering to the UK market. After the transaction, we will serve our customers with the skills and resources of more than 2,200 Banking & Insurance specialists."

Mr Peter Bertram, Chairman of AttentiV, states:

"We believe that the offer by TietoEnator reflects AttentiV's fundamental strengths and prospects and provides our shareholders with certainty and value at a premium to the current market value of AttentiV. As a result of the acquisition, TietoEnator's Banking & Insurance business area will gain a strong platform to develop its UK business. AttentiV customers will benefit from the broader range of products and services that TietoEnator can add to AttentiV's existing offering. In turn, the management and employees of AttentiV will have the opportunity to become part of one of Europe's largest IT services companies."

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