Netcompany enters into an agreement with SDC to create ‘the future of banking services’

Core Viewpoint - Netcompany Group A/S has entered into an agreement to merge with SDC A/S, creating a new company that will be fully owned by Netcompany, aimed at enhancing banking solutions and services for current and future banks on SDC's platform [1][2][6] Transaction Details - The transaction values SDC at DKK 1 billion, with a cash payment of DKK 1 billion to SDC's shareholders, funded through existing credit facilities [2] - The closing of the transaction is anticipated around mid-2025, pending regulatory and customary conditions [2] Strategic Rationale - This merger provides Netcompany with a strong position in the financial services sector, which is the highest spending vertical in IT services in Europe, with a total addressable market in Denmark, Norway, and Sweden estimated at over DKK 44 billion in 2025, growing more than 10% annually until 2028 [3] - The combined product suite will include Netcompany's offerings and SDC's core banking platform, aiming to improve the banking experience through enhanced digital services and personalized solutions [4] Workforce Impact - Post-transaction, the combined workforce of Netcompany and SDC will exceed 9,200 full-time equivalents (FTEs) [5] Leadership Statements - The CEO of Netcompany expressed excitement about the transaction, highlighting its alignment with the company's strategy to expand capabilities in the financial services industry and the potential for digital innovation [6] - The Chair of SDC noted the significance of this merger in enhancing competitiveness and setting new standards in banking services [7] Company Background - SDC is a leading IT service provider in the Nordic region, specializing in IT solutions for the financial services industry [8] - Netcompany is a prominent IT services company focused on digital transformation across Europe, with a strong portfolio of innovative solutions [9] Financial Guidance - For 2025, Netcompany expects organic revenue growth between 5% and 10% and an adjusted EBITDA margin of 16% to 19% [11] - The transaction is projected to be EPS accretive from 2026 and to provide double-digit percentage EPS accretion by 2028 compared to 2024 [12]