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Sweden’s SDS to acquire eServGlobal business in Romania, open tech centre – SeeNews


BUCHAREST (Romania), June 4 (SeeNews) – Seamless Distribution Systems (SDS) said on Tuesday it has signed an agreement to acquire all shares and assets in eServGlobal Holding SAS (eServGlobal) in Romania, Dubai and Indonesia for 2 million euro (SEK 21.4 million).

SDS plans to add two major development and technology centres in France and Romania, it said in a press release, without eleborating.

The acquisition will also strengthen SDS operational efficiency by providing complementary products. Significant business synergies in terms of profitability and growth are expected to emerge as early as 2020, but full effect will be visible in 2021, SDS said.

The completion of the acquisition is conditional on a formal approval of the transaction at an extraordinary general meeting of eServGlobal, which is expected to be completed within six weeks.

“The acquisition means that we are entering a new switchboard in our growth and profitability journey. We expect to be able to increase the company’s operations in Europe and America in the medium term,” SDS CEO Tommy Eriksson said.

The acquisition of eServGlobal will initially be financed through an acquisition loan arranged by Swedish bank Handelsbanken as well as through a bridge loan from private investors.

“With its customer base, its employees, its position on the market and electronic transaction solutions, eServGlobal complements and strengthens SDS’s current business and is a step further in our strategy to accelerate growth and profitability. The move is also actively contributing to a structural consolidation of the industry,” SDS chairman of the board of directors Gunnar Jardelov said.

Headquartered in Paris, France, EservGlobal develops mobile software solutions to support mobile financial services, with a focus on emerging markets and has its own development, customer management and sales organizations in Bucharest, Romania, Dubai and Jakarta, Indonesia. More than 90% of the company’s revenue is from the Middle East, North Africa, and Southeast Asia. The company posted sales of 7.1 million euro ($7.98 million) in 2018.

SDS is a Swedish technology and business solutions provider, specialized in digital distribution systems for telecom operators. SDS has approximately 150 employees in Sweden, Belgium, Ghana, Nigeria, USA, Pakistan, India, South Africa, Ecuador and the United Arab Emirates.

($=0.889 euro)





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