Dovre Group Plc Stock Exchange Release March 27, 2019 at 8.30 am
Dovre Group to acquire Tech4Hire
Dovre Group has entered into a conditional agreement to acquire a Norwegian staffing and consultancy company Tech4Hire AS specializing in providing highly qualified engineering consultants primarily to the oil and gas industry. The acquisition will strengthen Dovre Group’s position in this segment in Norway. The transaction is subject to customary closing conditions, and is expected to be finalised during the second quarter of 2019.
“This deal is an important next step in executing our growth strategy,” says Svein Stavelin, Chairman of Dovre Group. “Tech4Hire team will significantly strengthen our market share in Norway and give an extra boost in our plan to grow the profitability in our existing foot print.”
According to the conditional agreement signed on March 26, 2019, Dovre Group Projects AS, a Norwegian entity of Dovre Group has agreed to buy all shares of Tech4Hire AS. Tech4Hire has their operations in Norway with offices in Oslo and Stavanger. The company will be consolidated with Dovre Group’s business area Project Personnel.
In 2018, Tech4Hire recorded sales of NOK 73.5 million (around EUR 7.6 million) and an EBITDA of NOK 3.7 million (around EUR 0.4 million). In 2017, the company recorded sales of NOK 61.6 million (around EUR 6.3 million) and an EBITDA of NOK 2.2 million (around EUR 0.2 million). Tech4hire has delivered strong results also during the last years’ downturn and had an equity ratio of 26.4% at the end of 2018 (28.8% at the end of 2017). For 2019, Tech4Hire is expecting strong growth both in revenue and in EBITDA compared to 2018. Tech4Hire’s figures are based on unaudited 2018 financials. Tech4Hire has currently more than 90 employees. The sellers are committed to continue working for Dovre Group.
The enterprise value for Tech4Hire AS in the transaction is NOK 20 million (around EUR 2.1 million), of which Dovre Group Projects AS will pay NOK 16 million (around EUR 1.7 million) in cash and NOK 4 million (EUR 0.4 million) will be paid as Dovre Group Plc shares. In addition, the sellers may receive an additional consideration estimated between NOK 0 to 10 million (EUR 0 - 1.0 million), if certain financial targets are met by the end of 2019.
In 2018, the combined net sales of the companies in pro forma basis would have been around EUR 73.0 million, and the combined EBITDA would have been around EUR 1.4 million.
“The strategies of Tech4Hire and Dovre Group are a perfect match. Together we will be able to offer our existing clients and consultants an even stronger product and will be able to accelerate profitable growth in Norway,” says Trine Klungland, CEO of Tech4Hire.
“This acquisition is good news for our clients, employees, consultants and shareholders,” comments Arve Jensen, CEO of Dovre Group. “It will give us an even stronger offering within technical and engineering disciplines in Norway, we will increase our client base and we also see positive synergies adding capacity in the current positive market. We will be able to offer even more exciting career opportunities for our consultants and staff.”
Incepto AS acts as advisor for Dovre Group in connection with the transaction.
Dovre Group will issue an updated guidance for 2019 if the acquisition is completed as planned.
DOVRE GROUP PLC
For more information, please contact
Arve Jensen
CEO
Dovre Group Plc
+47 90 60 78 11
arve.jensen@dovregroup.com
Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. Dovre Group has offices in Canada, Finland, Norway, Singapore and the US, and employs about 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company website: www.dovregroup.com.
Tech4Hire is a Norwegian provider of consultants within engineering, IT and project administration. The company was founded in 2000 and employs currently more than 80 people. Company website: www.tech4hire.no
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