Linz, July 1, 2020 - S&T AG (ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock exchange symbol: SANT) today signed a contract for the acquisition of 55.5% of the German CITYCOMP Service GmbH including its subsidiaries in Austria and Switzerland. This concerns the 55.5% shares of the two shareholders who are no longer involved in the management of the company or will be involved in the future. The fixed purchase price for 55.5% of the shares is EUR 6 million. The remaining 44.5% of the shares, held by the remaining managing partners, are subject to mutual option agreements depending on the future EBITDA results. The transaction is expected to be completed in the third quarter of 2020.
Founded in 1988 as a third-party maintenance provider, CITYCOMP has developed over the years into a full-service provider for IT services with a comprehensive service network in DACH and BeNeLux. After the initial focus on data center systems, CITYCOMP has now expanded its competencies into all relevant IT areas. This includes network infrastructures, client systems and all kinds of devices in the retail environment. With its broad customer structure, the around 300-employee strong company generated approximately EUR 38 million in sales and positive net results in the financial year 2019. In recent months, the company has suffered from declining sales due to the Corona crisis and the shutdown of key customers, although the decline in sales can be regarded as temporary.
The acquisition gives S&T a nationwide service network in Germany, where it previously only had a regional presence. The S&T Group also anticipates a broadening of its customer structure in Germany, since well-known DAX companies are among CITYCOMP's long-standing existing customers. The acquisition will also generate numerous synergies with existing S&T customers in Germany and Austria. The future use of cost-effective S&T IT capacities from Eastern Europe to support the IT services provided in Germany represents a further competitive advantage.
Martin Heel, managing partner of CITYCOMP: "We have already enjoyed a long-standing partnership with S&T for the provision of services in Eastern Europe. With such a strong partner, now also as our shareholder, I am confident that we will be able to continue the rapid growth of recent years".
Hannes Niederhauser, CEO of S&T AG: "CITYCOMP is a great company, which is temporarily suffering from declining sales and capacity utilization problems due to the Corona crisis but will soon be able to return to earlier results. Through this acquisition, we will become an IT service provider with a nationwide presence in Germany and will be able to broaden our customer base and thus also better serve our existing customers"