07/14/2011

ALLGEIER HOLDING AG / Key word(s): Acquisition

15.07.2011 / 00:18

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Munich, 14 July 2011 – Allgeier Holding AG (WKN DE000508300), one of the
leading IT consultancy and service companies in German-speaking countries,
today signed a contract with the shareholders of IT solution provider and
software developer Nagarro Inc. to acquire all shares in the company. The
transfer of all the shares (closing) is dependent on compliance with the
usual contractual terms and is expected to be completed within the next few
days. The company, which has its headquarters in the Silicon Valley, USA,
has subsidiaries in Germany, Sweden, India and Mexico.

High-end software service provider Nagarro, known for their advertising
claim ‘the brightest minds’, develops tailored software solutions. Among
the company’s key customers are major corporations in the USA and Europe
which bank on Nagarro’s expertise and reliability in providing and
developing key internal applications. The company, which was established in
1996, achieved sales of approx. US$ 22 million in 2010 with a worldwide
staff of 840. Nagarro has seen constant major growth in both sales and
profits for many years now. For 2011, growth of 35 percent in sales up to
approx. US$ 30 million is anticipated.

To Allgeier, the transaction is a logical strategic move at an
international level so as to conquer key markets, and represents a
continuation of their policy to buy shares in high-end, medium-sized
companies. Given the predicted shortfall in IT experts in German-speaking
countries, the company will thus gain access to highly qualified IT staff
in global locations. Add these resources to the existing specialists in
Allgeier’s group of companies and customers will find that all of their
requirements can be fully covered. Allgeier’s large, international
customers will benefit from the holistic performance in global projects.
Another factor behind this transaction is to enhance the service portfolio
of the Allgeier Group in terms of both valuable knowledge of
state-of-the-art technology as well as geographical reach.
 
The board of Allgeier Holding considers the acquisition of Nagarro Inc. to
provide the basis for accepting further opportunities for international
growth and a response to the shortfall in experts. ‘We are positive that
Nagarro is a suitable partner, and we are looking forward to our joint
development,’ says Carl Georg Dürschmidt, CEO of Allgeier Holding AG.
‘Nagarro is known for their efficient use of state-of-the-art IT as well as
highly satisfied customers. With our support, Nagarro will be able to offer
their customers even more added value in future.’

To Nagarro, the affiliation to Allgeier means better access to the
German-speaking and international IT markets by taking advantage of
economies of scale and synergies. ‘This partnership with Allgeier Holding
opens the door to an exciting new set of opportunities for Nagarro,’ said
Mr. Vikas Sehgal, CEO of Nagarro Inc. ‘Nagarro looks forward to offering
our Global 500 customers the flexibility, intelligence and intensity they
have come to expect from us, combined with the reach and scale of a larger
global partner. By teaming up with Allgeier Holding, Nagarro can retain its
identity and focus while delivering the advantages of a much bigger
company.’

The initial purchase price is in the low 2-digit million euro range and may
well rise within the coming three years to somewhere in the mid-2-digit
million euro price range when the company’s earn-out targets are fully
realized. In the deal to sell their shares, Nagarro Inc.’s shareholders
acquired a block of shares in Allgeier Holding AG. They will continue to
have operational responsibility and serve as managing directors.

Short profile of Nagarro
Nagarro builds complex, business-critical products and applications that
help companies meet their core business goals and gain competitive
advantage. Nagarro’s complete commitment to the success of every project,
unmatched engineering skill and quality, and deep domain expertise in
numerous industries build on a shared vision of success between Nagarro and
each of its customers. Founded in 1996, Nagarro has offices in the US,
Mexico, Germany, Sweden and India. In 2010, Nagarro achieved sales of US$
22 million with a worldwide staff of 840.

Press contact
Allgeier Holding AG
Florian Kränzle
Wehrlestraße 12
81679 Munich, Germany
Telephone: +49 89 998421-0
Fax: +49 89 998421-11
E-mail: fkraenzle@allgeier-holding.de

Allgeier Holding AG, with its headquarters in Munich, is one of the leading
consultancy and service companies in the German-speaking countries. With
their units IT Solutions, IT Services & Recruitment and Project Solutions,
Allgeier offers a comprehensive range of services from the initial concept
through implementation to the operation of IT landscapes. Allgeier Group
has 16 operational subsidiaries with over 1,300 employees as well as more
than 1,400 freelance experts serving some 3,000 customers in virtually
every area of the economy. In Germany, the Group runs 52 subsidiaries as
well as 18 offices in Belgium, France, the Netherlands, Austria, Romania,
the Czech Republic, Switzerland and China. During the 2010 financial year,
Allgeier achieved sales of EUR 308.7 million. According to Lünendonk’s
market segment survey in 2010, Allgeier ranks no. 2 among the medium-sized
IT service companies and no. 2 among IT recruitment companies in Germany.
The company is listed on the official market (General Standard) at the
Frankfurt Stock Exchange.

End of Corporate News

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15.07.2011 Dissemination of a Corporate News, transmitted by DGAP – a
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Language: English
Company: ALLGEIER HOLDING AG
Wehrlestraße 12
81679 München
Germany
Phone: +49 (0) 89 – 99 84 21 0
Fax: +49 (0) 89 – 99 84 21 11
E-mail: info@allgeier.com
Internet: http://www.allgeier.com
ISIN: DE0005086300
WKN: 508630
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

End of News DGAP News-Service
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