Bloomberg News

Innofactor Rises After Acquisition of Rival: Helsinki Mover

June 07, 2013

Innofactor Oyj (IFA1V) jumped the most in almost three weeks in Helsinki trading after the Finnish information-technology services provider bought a competing distributor of Microsoft Corp. (MSFT:US) software.

Innofactor shares gained as much as 18 percent, the biggest intraday increase since May 20, and traded up 16 percent to 85 euro cents at 10:17 a.m. in the Finnish capital. Trading volume was more than 50 percent above the average daily trading over the past three months. The jump was the biggest on the OMX Helsinki All-Share Index (HEX), valuing the Espoo-based company at 25.6 million euros ($33.9 million).

Innofactor acquired atBusiness Oy for as much as 7.6 million euros, valuing the purchased operations at as much as 15.7 million euros. At least 45 percent of will be paid in cash, and the rest in shares, Innofactor said in a statement today. The company will borrow 11.5 million euros to pay the cash and rearrange loans in the acquired unit.

Innofactor raised its full-year sales forecast to as much as 37 million euros from its prior estimate of 24 million euros. It predicts operating profit before depreciation and amortization of as much as 5 million euros compared with 2 million euros earlier, according to a separate statement.

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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