GFT Group sells staffing services provider emagine to management

GFT Group sells staffing services provider emagine to management

  • emagine division will continue as independent group of companies in Germany, France and the UK
  • GFT Group focussing on high-growth business with IT solutions for the finance sector
  • Forecast for financial year 2015 adjusted

Stuttgart, 27 July 2015 – The GFT Group today signed an agreement with Financière Valérien SAS regarding the sale of its emagine business division in the countries Germany, France and the UK. In Financière Valérien SAS the current management of emagine, headed by Jean-François Bodin, COO for emagine on the Executive Board of GFT Technologies AG, and the French financial investor MBO Partenaires will hold stakes on the completion of the transaction (closing). The transfer of ownership is planned for the third quarter of 2015. The two sides agreed not to disclose the purchase price. 
 
The emagine division specialises in the staffing of technology projects with highly skilled experts in the field of IT, engineering and business consulting. In 2014, its 129 employees generated revenue of EUR 86.09 million (prev. year: EUR 90.23 million) and earnings before taxes (EBT) of EUR 1.66 million (prev. year: EUR 1.08 million). With the sale of this division, the GFT Group is now focussing strictly on its business with IT solutions for the finance sector, which grew by 60 percent to EUR 279.22 million in 2014.

In accordance with the applicable IFRS regulations (International Financial Reporting Standards) for the GFT Group, the revenue and earnings of emagine will no longer be disclosed in the GFT Group’s financial figures for 2015. The Executive Board has thus adjusted its revenue forecast for the GFT Group in financial year 2015 accordingly and now expects revenue of around EUR 340 million (previously EUR 425 million). The full-year forecast for earnings before interest, taxes, depreciation and amortisation (EBITDA) has been reduced to EUR 42 million (previously EUR 44 million) and for earnings before taxes (EBT) to EUR 29 million (previously EUR 31 million). The exact impact in accordance with IFRS rules on the discontinued division’s net profit for the period have not yet been determined and will be announced together with the mid-year figures.

“Over the past few years, we have realigned emagine and improved its earnings position. In view of the growing shortage of skilled staff in the technology sector, we anticipate good growth prospects for emagine across all sectors,” said Ulrich Dietz, CEO of GFT Technologies AG. “However, there is hardly any synergy potential in this field which would further strengthen our core business with IT solutions for the finance sector. The GFT Group will continue to expand its range of services and international presence for the digitisation of banking processes and regulatory compliance.“

Following the transaction, emagine will continue to be headed by the current management teams of its national subsidiaries under the leadership of Jean-François Bodin, who has been responsible for the operations of this division as a member of the Executive Board of GFT Technologies AG since 2011.

“The successful strategic realignment and future independence of the company will significantly sharpen the profile and positioning of emagine in the marketplace,” states Jean-François Bodin. “emagine specialises in high-growth technology sectors, such as retail, transport, telecommunications, engineering, energy and IT. We help our clients put together teams of experts for complex technology projects. emagine is the ideal platform for highly skilled business consultants and technology experts to find attractive professional challenges.”