ADS System AG
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ADS System AG takes over Netlink B.V., one of the top 10
network service providers in the Netherlands.
Bad Homburg, Germany, 2nd August 2000. ADS System AG (security
code no.514 780) has succeeded in entering the Benelux market by taking
over Netlink B.V., Utrecht. Founded in 1993, Netlink is now one of the top
ten network service providers in the Netherlands. After the market launches
of ADS System AG in Austria and Switzerland, this move constitutes a further
step in its Europe strategy announced at the IPO. ADS System is to take
over all shares of Netlink B.V. retroactively as of 1st January 2000.
An agreement on contribution of capital was signed in Utrecht yesterday
evening. The transaction is still subject to the agreement of further bodies
of both companies.
Acquisition with own shares and success-dependent earn-out
Netlink covers the entire spectrum of network services and has a number of
reputed companies in its customer base, such as Nikon, Aegon, Randstad,
Stork, Reebok, Mannesmann, UPC, Energis, Bank Insinger de Beaufort, Fortis
Bank, ING, Rabo Bank, ABN AMRO etc. In the last few years, Netlink achieved
steady growth with annual sales increases of 20% and above. In 1999 the
company made sales of 30 million guilders and attained a pre- tax result of
3.3 million guilders. Netlink plans to increase sales to fl 35m and
EBIT to fl 4m in the year 2000. The purchase price will be paid in two
payments, and is made up of 393.540 of ADS System’s own shares, which are
issued from approved capital as part of a capital increase, and an earn-out
that depends on reaching the budgeted result for the year 2000.
Netlink – similar business model simplifies integration
In Netlink B.V. ADS System has found an ideal partner for entering the
Benelux market. Besides their similar business model, the companies have
several other things in common, such as the strategic cooperation with Cisco
systems, Nortel, Madge etc. and also the high qualifications of their staff.
The company cultures are also highly compatible. All 35 Netlink employees will
be kept on, and Hans Snel and Ruud Kroon will continue as company managers.
This will ensure a smooth transition into the joint future of the two
successful companies. Netherlands an attractive market for IP over wide-band
cable The Dutch network services market offers interesting potential in the
area of voice/data integration. With its recently agreed “Silver partnership”
with Cisco and the cooperative deal negotiated with Nortel Networks in June,
ADS System AG has done the spadework for joining the leading players in this
market segment in the Netherlands, too. The large number of cable network
operators and the high connection density of Dutch households make IP over
broadband cable particularly attractive in the Netherlands. Using cable modem
technology, TV broadband cable networks offer superior high-speed Internet
access and can be developed into multiservice networks of the future for
high-quality, fast communication services. ADS System has been successfully
expanding this business area in Germany since the beginning of this year.
By cooperating with General Instrument and Cisco Systems, ADS System has
concentrated competence on the German market, offering network operators
complete solutions for IP services over broadband cable.
Together with the unique competence of Netlink B.V. for IP management and
Service level management for large ( cable modem ) networks, ADS System AG
is perfectly equipped to serve this strong growing market.
contact:
ADS System AG – Investor Relations
Kay Fautz
Siemensstrasse 25A
D-61352 Bad Homburg
Tel. +49(0)6172-288-280
Fax +49(0)6172-288-403
e-Mail IR@ads.de
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