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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.
More information about Nagarro here: www.nagarro.com