Addnode has sold its shares in eviware Software AB to SmartBear, resulting in a capital gain of SEK 19-23 M

Addnode has sold its shares in eviware Software AB to SmartBear,
resulting in a capital gain of SEK 19-23 M

 

The transaction in brief

Addnode AB (publ) has today, through its wholly-owned subsidiary Mogul
AB, sold its total holding of 35 percent of the shares in the software
company eviware software AB to the US based software company SmartBear
Software Inc. The other sellers include management of eviware software
AB. The purchase price consists of an upfront payment and an earn-out
payment relating to future sales during the forthcoming two years.

Addnode has historically not consolidated results of operations from
eviware, except for a dividend of SEK 0.9 M which will be recognized as
operating profit in the second quarter of 2011. The purchase price for
Addnodes total holding of 35 percent in eviware is expected to be SEK
21-25 M. The capital gain from the sale, expected to be SEK 19 - 23 M,
will be included in the operating result for the third quarter of 2011.
The range of the capital gain includes a maximum earn out payment of SEK
4 M that is contingent on future sales the forthcoming two years. The
selling price of the shares is denominated in U.S. dollars and is
subject to change depending on the dollar rate. Cash flow in the third
quarter of 2011 will be positively impacted by approximately SEK 20 M
from the sale.

Comments to the sale

“Eviware have successfully managed to establish soapUI as the de facto
standard for Web Service testing during our ownership period. Focus on
customer care and further international expansion were key parts of this
process and eviware is now ready and well equipped for the next phase
with new owners at the helm,” said Urban Näsman, member of the Board of
eviware and CEO of Mogul.

“We have a tradition of customer driven development that has resulted in
a broad portfolio of products that are key assets to our group and a
base for our solutions. All products and business ideas do not fit into
our strategy. But when we believe in the idea we could still in various
ways contribute. Eviware is an example of how we can assist employees
with good ideas to the benefit of all parties, said Staffan Hanstorp”,
CEO and President of Addnode Group.

About eviware software

Eviware was founded in 2006 by former employees of the Addnode
subsidiary Mogul AB, who seed financed the company.

Eviware has created soapUI, the most used Web Service testware
worldwide. With more than two and a half million downloads and eight
hundred thousand users, soapUI is the de facto standard for Web Service
testing. soapUI is a free and open source cross-platform Functional
Testing solution that allows to easily and rapidly create and execute
automated functional, regression, compliance, and load tests. In a
single test environment, soapUI provides complete test coverage and
supports all the standard protocols and technologies.

Eviware has also created loadUI, a free and open source cross-platform
Load Testing solution that allows the user to create, configure and
redistribute Load Tests interactively and in real-time. In a single test
environment, loadUI provides complete test coverage and supports all the
standard protocols and technologies. Learn more about eviware at
www.eviware.com (http://www.eviware.com/)

About SmartBear Software

SmartBear Software provides tools for over 100,000 software
professionals to build, test, and monitor some of the best software
applications and websites anywhere - on the desktop, mobile and in the
cloud. SmartBears users can be found across 90 countries, in small
businesses, Fortune 100 companies, and government agencies. Learn more
about SmartBear at www.smartbear.com (http://www.smartbear.com/)

The information in this press release is such that Addnode must disclose
in accordance with the Swedish Securities and Clearing Operations Act
and/or the Financial Instruments Trading Act. The information was
released on July 5, 2011 at 07.00 p.m.

For further information, contact:

Staffan Hanstorp, President and CEO, Addnode AB
Tel: +46 733 772 430, e-mail:
staffan.hanstorp@addnode.com (staffan.hanstorp@addnode.com)

Urban Näsman, CEO Mogul AB and Business Area Manager Content Management
in the Addnode Group
Tel: +46 705 85 85 23, e-mail: urban.nasnman@mogul.com

Johan Andersson, Head of Business development and Corporate
Communication, Addnode AB.

Tel: +46 704 205 831, e-mail:
johan.andersson@addnode.com (johan.andersson@addnode.com)