The transaction in brief
Addnode AB (publ) has today, through its wholly-owned subsidiary Mogul AB, sold its total holding of 35 percent of the shares in the software company eviware software AB to the US based software company SmartBear Software Inc. The other sellers include management of eviware software AB. The purchase price consists of an upfront payment and an earn-out payment relating to future sales during the forthcoming two years.
Addnode has historically not consolidated results of operations from eviware, except for a dividend of SEK 0.9 M which will be recognized as operating profit in the second quarter of 2011. The purchase price for Addnodes total holding of 35 percent in eviware is expected to be SEK 21-25 M. The capital gain from the sale, expected to be SEK 19 – 23 M, will be included in the operating result for the third quarter of 2011. The range of the capital gain includes a maximum earn out payment of SEK 4 M that is contingent on future sales the forthcoming two years. The selling price of the shares is denominated in U.S. dollars and is subject to change depending on the dollar rate. Cash flow in the third quarter of 2011 will be positively impacted by approximately SEK 20 M from the sale.
Comments to the sale
"Eviware have successfully managed to establish soapUI as the de facto standard for Web Service testing during our ownership period. Focus on customer care and further international expansion were key parts of this process and eviware is now ready and well equipped for the next phase with new owners at the helm," said Urban Näsman, member of the Board of eviware and CEO of Mogul.
"We have a tradition of customer driven development that has resulted in a broad portfolio of products that are key assets to our group and a base for our solutions. All products and business ideas do not fit into our strategy. But when we believe in the idea we could still in various ways contribute. Eviware is an example of how we can assist employees with good ideas to the benefit of all parties, said Staffan Hanstorp", CEO and President of Addnode Group.
About eviware software
Eviware was founded in 2006 by former employees of the Addnode subsidiary Mogul AB, who seed financed the company.
Eviware has created soapUI, the most used Web Service testware worldwide. With more than two and a half million downloads and eight hundred thousand users, soapUI is the de facto standard for Web Service testing. soapUI is a free and open source cross-platform Functional Testing solution that allows to easily and rapidly create and execute automated functional, regression, compliance, and load tests. In a single test environment, soapUI provides complete test coverage and supports all the standard protocols and technologies.
Eviware has also created loadUI, a free and open source cross-platform Load Testing solution that allows the user to create, configure and redistribute Load Tests interactively and in real-time. In a single test environment, loadUI provides complete test coverage and supports all the standard protocols and technologies. Learn more about eviware at www.eviware.com (http://www.eviware.com/)
About SmartBear Software
SmartBear Software provides tools for over 100,000 software professionals to build, test, and monitor some of the best software applications and websites anywhere – on the desktop, mobile and in the cloud. SmartBears users can be found across 90 countries, in small businesses, Fortune 100 companies, and government agencies. Learn more about SmartBear at www.smartbear.com (http://www.smartbear.com/)
The information in this press release is such that Addnode must disclose in accordance with the Swedish Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was released on July 5, 2011 at 07.00 p.m.
