Finnish merger creates a company with 450 Symbian developers

^{SysOpen Digia acquires Yomi Software} Finnish merger creates a company with 450 Symbian developers

23 Mar 2005 at 06:22 GMT Timo Poropudas

SysOpen Digia Ltd has acquired Yomi Software Ltd, an operator middleware provider. The deal will complement its service offering and expand the size of its business to become a comprehensive systems integrator for smartphone and information systems.

The expansion will also support SysOpen Digia’s international business operations.

The acquisition of Yomi Software will strengthen both SysOpen Digia’s core business. In integration business, especially the operator segment and enterprise key technology based operations will grow. In addition, the company’s project based business is expected to increase.

In the Smartphone Business, the acquisition will make SysOpen Digia a key player globally. Scalability provided by 450 Symbian experts after the acquisition, SysOpen Digia will be one of the world’s largest Symbian houses.

SysOpen Digia after the acquisition

As a result of the acquisition, SysOpen Digia will become an information systems and communication solutions integrator with approximately 800 professionals. The company provides contract engineering services, software solutions, products, training and consultation to enterprises, smartphone manufacturers, operators, public organisations and associations.

SysOpen Digia’s products and services cover the entire implementation chain from terminal device development to communications solutions and operational information systems.

SysOpen Digia’s pro forma figures for 2004 (FAS) including Yomi Software are as follows:

Turnover, MEUR 64.1
EBITA, EUR 5.8 (9.1% of turnover)
Net gearing 38%
Equity ratio 44%

EUR 12.1 million

The acquisition price of Yomi Software is 12.1 million euros. The acquisition price will be paid in cash, and SysOpen Digia will finance it from its own cash funds. In conjunction with the acquisition, SysOpen Digia will assume liability for Elisa Corporation’s debt of approximately MEUR 1.5 to Yomi Service Oy, a wholly owned subsidiary of Yomi Software Ltd.

SysOpen Digia’s Board of Directors approved the acquisition at its meeting on 21 March 2005.

Immediately after the signing of the agreement, the meeting of the shareholders of Yomi Software Oy elected the following new members to the board of directors of the company: Pekka Sivonen, Jari Mielonen, Arto Sahla and Tomi Merenheimo. The board of directors appointed Jari Mielonen as the managing director of the company.

SysOpen Digia expects to achieve annual cost savings of 1.8 million euros as of 2006. This figure includes the cost savings of 0.8 million euros announced in connection with the combination of SysOpen Plc and Digia Inc.

Pekka Sivonen, Chairman of the Board of Directors, SysOpen Digia Plc said:

“This acquisition provides SysOpen Digia with extended resources to carry out its current business. At the same time, it communicates to the market that we are proceeding actively in order to strengthen our position as a supplier of comprehensive mobile and business solutions. The expertise that Yomi Software adds to the company, particularly in the Symbian business, in the operator segment and enterprise applications, is a major step forward in this development.”