IXOS Software AG
IXOS Software AG english
IXOS becomes European market leader after two acquisitions
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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IXOS becomes European market leader after two acquisitions – increased revenue
growth forecasts – half-yearly figures met in full
Munich/Grasbrunn, January 24, 2003 – IXOS SOFTWARE AG, a leading provider of
document management software solutions, has acquired Obtree Technologies Inc.,
Basel, and the operating business of PowerWork AG, Kempten. With the two
takeovers, IXOS is rapidly implementing its previously announced growth strategy
for the enterprise content management market, and immediately becomes the
European market leader.
IXOS is taking over Obtree Technologies Inc., a leading provider of content
management products at a price of SFR 0.52 (EUR 0.36) per share for 96,4% of the
company`s 14,790,347 ordinary shares against cash. This corresponds to a
purchase price of SFR 7.7 million (EUR 5.3 million) for a 100% interest. The
transfer of beneficial ownership is scheduled to take place on February 1, 2003.
In the case of PowerWork AG, IXOS is acquiring all operating assets for a cash
payment of EUR 1.2 million, effective as of January 1, 2003 retroactively.
According to preliminary estimates, IXOS` consolidated revenue for the second
quarter of fiscal 2002/2003 (to December 31 2002) rose by 5% to EUR 34.6 million
(previous year: EUR 33.0 million). Consolidated income from operations (EBIT)
improved to EUR 4.1 million (previous year: EUR 4.0 million). As a result,
consolidated revenue for the first half of the fiscal year was up 10% to EUR
60.6 million (previous year: EUR 54.9 million); EBIT increased 12% to EUR 1.9
million (previous year: EUR 1.7 million). The acquisitions will lead to revenue
growth for the current 2002/2003 fiscal year in excess of the 10% previously
announced. In addition, IXOS is forecasting substantially greater revenue growth
in the coming fiscal year, 2003/2004.
Due to these M&A transactions IXOS will postpone publication of its full results
for the second quarter and the first half of fiscal year 2002/03 to February 4,
2003, and will release the information prior to the start of the Frankfurt
Stock Exchange trading.
end of ad-hoc-announcement (c)DGAP 24.01.2003
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
IXOS European market leader after two acquisitions
Grasbrunn/Munich, January 24, 2003 – IXOS SOFTWARE AG (NASDAQ: XOSY, NEUER
MARKT: XOS, German Securities Code 506150), the document management software
specialist, has become the European market leader following two acquisitions.
The purchase of Swiss-based Obtree Technologies Inc. and of the operating
business of PowerWork AG will increase revenue growth by the IXOS Group in the
course of the present fiscal year 2002/2003. In the first half of the current
reporting period, IXOS bucked the general market trend, continuing its growth
strategy and fully meeting the targets it had set itself. According to
preliminary estimates consolidated revenue rose by 10% to EUR 60.6 million
(previous year: EUR 54.9 million). Income from opera-tions (EBIT) rose 12% to
EUR 1.9 million (previous year: EUR 1.7 million).
These two acquisitions make IXOS the European market leader and represent a
major step on the way to achieving our medium-term goal – to become one of the
top five companies on the market worldwide, said IXOS CEO Robert Hoog. IXOS has
positioned itself as a leading European provider of enterprise content
management (ECM) solutions that enable customers to manage documents and
business related content electronically, and helps to optimize their business
processes.
The two new acquisitions are specifically designed to complement our portfolio
in this dynamic environment. We have acquired technologies that ideally
complement our products in the key fields of content management, workflow and
process management, as well as a number of products that are already established
on the market and additional development and marketing resources, he continued,
explaining the strategy behind the move.
The expanded product range will generate additional customer demand and improve
IXOS` position in the key customer segment of the banking and finance section in
particular. Hoog announced that IXOS will continue its strategy of combining
organic and external growth and that it will actively exploit current market
opportunities.
IXOS successfully implements external growth strategy
Obtree Technologies Inc., Basel, the closely held Swiss public company that IXOS
has acquired, is a software company offering development, sales, services and
support. Obtree is a leading European supplier of content management solutions
and offers a product range that can be integrated seamlessly into key systems
environ-ments of SAP, Microsoft and others. The company increased sales in 2002
by 60% to EUR 12.0 million. New licenses, a key factor, accounted for 61% of
total revenue. Obtree already has 500 installations at 200 customers.
IXOS is acquiring Obtree Technologies Inc. with a total of 86 employees in
return for the cash purchase of the company`s shares. IXOS is buying 96.4% of
the company`s 14,790,347 ordinary shares at a price of SFR 0.52 (EUR 0.36) per
share. This corresponds to a purchase price of SFR 7.7 million (EUR 5.3 million)
for a 100% interest. The transfer of beneficial ownership is scheduled to take
place on February 1, 2003. IXOS` advisors on the transaction are the Technology
Group at Commerzbank Securities.
In the case of the German non-listed PowerWork AG, Kempten, which is also pri-
vately held, IXOS is acquiring its entire operating assets plus 24 employees in
return for EUR 1.2 million in cash, effective as of January 1, 2003
retroactively. PowerWork is a software house offering development, sales,
services and support. The company is positioned as an innovative supplier of
process management and workflow technologies in Germany, Austria and
Switzerland. It generated revenue of EUR 2.2 million in fiscal year 2001/2002,
43% of which was due to its license business with a total of 80 customers. IXOS`
acquisition of PowerWork gives it access to innovative workflow technology for
developing sector-specific document management solutions. Among other things,
PowerWork is the technology leader for process management systems based on
Microsoft Exchange.
H1 2002/2003: revenue targets met, earnings slightly exceeded
IXOS has successfully maintained its profitable growth strategy, despite the
contin-ued difficult market, said CFO Peter Rau. The company met the revenue
growth target of 10% that it announced in September 2002 and slightly exceeded
its guidance for income from operations of 10%.
Outlook
As a result of the acquisitions, revenue growth for the current fiscal year
2002/2003 will exceed the forecast 10%. In addition, IXOS is expecting revenue
growth to increase substantially in the coming fiscal year 2003/2004.
Due to these M&A transactions, IXOS will postpone publication of its full
results for the second quarter and the first half of fiscal year 2002/03
(31.12.02) to February 4, 2003; the quarterly report will be published before
the start of trading on the Frankfurt Stock Exchange.
Contact: IXOS SOFTWARE AG, IR-HOTLINE, ++49-89-4629 2400
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WKN: 506150; ISIN: DE0005061501; Index: NEMAX 50
Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
240700 Jän 03
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