07/14/2011

Allgeier Holding AG (WKN DE000508300) 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.

Nagarro is a high-end software service provider which 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. In 2010, Nagarro achieved sales of approx. USD 22 million with a worldwide staff of 840. The company, which was established in 1996, has seen constant major growth in both sales and profits for many years now. 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. The existing shareholders of Nagarro Inc. will continue to have operational responsibility and serve as managing directors.

To Allgeier, the transaction is a strategic move at an international level so as to conquer key markets. 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 even 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.