Just two days after admitting it was seeking to further expand its Nordic IT services operations, Finland-based IT services company Tietoenator Oyj announced it has bought Copenhagen, Denmark-based Dansk Informations Teknologi A/S (DIT) for an undisclosed sum.
The purchase of DIT, Tietoenator’s first since the formal merger of Finland-based Tieto and Sweden-based Enator on July 7, 1999, adds 75 employees to the company’s Danish presence, bringing the total to 320. These are distributed around various operations which also include Enator A/S, TietoTechnology A/S, Entra Financial Software AS and NetDesign A/S.
Tietoenator said DIT’s management team will remain unchanged after the takeover. DIT supplies IT solutions to a number of Denmark’ unemployment benefit funds and trade unions as well as high profile customers such as Lego.
DIT returned profit before tax of DKr16.6m ($2.38m) in FY1999 on revenue of DKr60m ($8.6m). Tietoenator expects this to have a positive effect on its share dividend for 1999, helping to overcome net profits that were down 1% to 32.7m euros ($34.4m) for the six months to June 30. The company says this was mainly due to restructuring in its Swedish services and communications operations, some of which recorded losses (CI No 3,728).
Further acquisitions are to be expected in both the Nordic region and central Europe, Tietoenator’s main targets for expansion.
