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AKKA TECHNOLOGIES ACQUIRES MBTECH AND TURNS INTO THE EUROPEAN CHAMPION




  • 900 M€ pro forma revenue cap to be exceeded

  • AKKA acquires 65% of MBtech and Daimler remains partner with 35%

  • AKKA becomes a leader in Europe with half of its revenue generated outside of France

 


1. MBtech - a profitable company and a major player in engineering services in Germany


Created by Daimler in 1993, MBtech has rapidly became one of the Top 5 engineering companies in the German market. MBtech is specialized in high technology in the automotive industry. It has a specific expertise that covers the entire value chain: vehicle engineering, powertrain solutions, electronics solutions and consulting.


Daimler wants to keep a stake of 35% because of the strategic importance of MBtech, and  guarantees a high recurrence of the revenue over the 5 years to come. This will help AKKA to make MBtech autonomous and to diversify its clients.


MBtech employs 3504 experts and generated a revenue of 300 M€ in 2010 and 350 M€ is expected in 2011. 91% of the revenue derives from the automotive industry in Germany. MBtech is a profitable company at 4% operational margin but there are rooms for improvement to rapidly reach the AKKA Technologies group profitability.  The integration of MBtech will be eased by the AKKA Technologies proven track record in integrating large companies and upturning their profitability (Coframi in 2007, Ekis in 2009 …).


 


2. Creation of the European Champion - a group well positioned in Germany and France


When AKKA became public, it announced it wishes to reach a critical size, to be a major player in the embedded IT and to generate more than 1/3 of its revenue outside of France because it permits the group to deliver the best services to manufacturers that are diminishing the number of their suppliers, want to increase the productivity of their engineers and to keep high added value engineering in Europe.


Through MBtech acquisition, AKKA Technologies accelerates the rolling over of its strategic plan and fullfills its commitment to grow in Germany. In less than one year the group will double its size exceeding 900 M€ proforma revenue.


Following the acquisition of  Aeroconseil in September 2011 that has turned AKKA into the leader in the Aeronautics engineering, the acquisition of MBtech permits AKKA Technologies to gain a foothold in the German market, one of the most prosperous in Europe.


 




AKKA Technologies – New step of the strategy of balances




The acquisition of MBtech by AKKA Technologies will create the impetus :



  • To diversify in the German car industry.


  • To pace up the expansion of the group in the Aeronautics and Aerospace. AKKA wants to rapidly diversify with other automotive german customers and increase dramatically the revenue with the EADS group in Germany.


  • To offer best career opportunities for engineers and experts, benefiting from a truly complementarity geographical, sector and expertise coverage.

Both MBtech and Daimler will benefit from the AKKA Technologies deep knowledge in diversifying through cross fertilisation and confidentiality management and in expanding while increasing profitability.


The price will be paid in cash. The financing will only be made through a syndicated loan. The gearing for 2012 of AKKA Technologies will remain below 1.


 


3. AKKA Technologies – a new leader with 900M€ revenue expected


The acquisition of Aeroconseil and MBtech Groups is the achievement of the Strategy of Balances pursued by AKKA Technologies since its very creation:


• Balance in sectors: AKKA Technologies is a global leader of the Engineering and High Technologies in Europe in the aeronautics and automotive industry and will strengthen its positionning in other industries such as energy, aerospace, defense, railway, etc.


• Balance in clients: AKKA Technologies is accelerating the diversification of its clients in the automotive industry.


• Geographical balance: AKKA Technologies is with 2 solid axes of growth in France and Germany.


 


With the acquisition of MBtech, AKKA Technologies:



  • Strengthens its global development in order to serve its customers with a worldwide workforce of more than 10 000.


  • Will generate 50% of its revenue internationally and have over 50 locations worldwide to support its customers in transnational projects.


  • Will focus on its organic growth and will open new opportunities for growth in Germany on sectors such as aeronautic and aerospace.

 


Signing of the MBtech acquisition protocol


The closing will occur after obtaining permission from the Competition Authorities which is expected at the end of the first quarter 2012.


An information meeting will present more details on this acquisition on 13 December 2011.


 


About AKKA Technologies


“The best way to predict the future is to invent it.

Let’s share our passion for technology.”


AKKA Technologies, a European Engineering and Technology Consultancy Group, supports major industrial and service sector clients throughout the various phases of their projects, from R&D and design studies to industrial production. Expertise in a range of complementary fields means that AKKA Technologies can offer real added value to its clients in every market segment, including aviation, automotive, space/defence, consumer electronics, telecommunications, chemicals, pharmaceuticals, iron and steel, energy, rail, marine and the service industry.

The mobility of its teams and its international position mean that AKKA Technologies works on projects at the cutting edge of technology all over the world.

Following the takeover of Aeroconseil, the AKKA Technologies Group now has 7,000 employees working at 50 sites throughout the world, including Belgium, France, Germany, India, Italy, Morocco, the Netherlands, North America, Romania, Spain, Switzerland, Tunisia, the UAE and the United Kingdom. The pro forma, unaudited Group revenue for 2011 is expected to be 545 million Euros, over 16% of which comes from international activity.


AKKA Technologies is listed on EuronextTM Paris – Compartment B – ISIN Code: FR0004180537.

Indexes CAC® Small, CAC® Mid & Small, CAC® All-Tradable, CAC® All-Share

Brokers: ARKEON, CM CIC, GENESTA, GILBERT DUPONT, ID MIDCAPS, ODDO,  PORTZAMPARC

More information at www.akka.eu, investor area http://investisseurs.akka.eu/


AKKA TECHNOLOGIES


Contacts:


AKKA Technologies

Nicolas Valtille - Managing Director - Tel.: + 33 (0)4 78 92 60 83 – [email protected]


Actus Lyon

Amalia Naveira – Investor / Analyst Relations Officer - Tel.: + 33 (0)4 72 18 04 97 - [email protected]

Marie-Claude Triquet – Press relations – Tel.: +33 (0)4 72 18 04 93 – [email protected]


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http://www.actusnews.com/documents_communiques/ACTUS-0-26081-cp-akka-technologies-081211.pdf

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Akka Technologies Stock

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The price for the Akka Technologies stock decreased slightly today. Compared to yesterday there is a change of -€0.200 (-0.410%).

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