STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Eniro Norge AS (STO:ENRO) is consolidating parts of the market for directory assistance services through a merger with the low-price challenging brand, 1888.
Eniro Norge AS signed a merger agreement today with Marell Invest AS and TV2 AS, the principal owners of the Norwegian directory assistance service, 1888 Vaersågod! AS. Following the merger, Eniro will control 60% of the joint operations, while the owners of 1888 will control the remaining 40%. In 2012, Eniro’s revenues from the proprietary directory assistance service, 1880, will total approximately SEK 75 M, while 1888’s revenues for the corresponding period will be about SEK 65 M. The transaction as such will not impact cash-flow and will not generate any capital gain impact. No purchase consideration arose.
A merger notification has today been submitted to the Norwegian Competition Authority.
The merger contributes to consolidating a market where volumes are declining. The agreement enables significant efficiency improvements and cost synergies as well as it creates the conditions for a more attractive service for the users. The jointly owned company is, subject to an approval from the Norwegian Competition Authority, scheduled to be consolidated in the Eniro Group during the first quarter 2013. The transaction on is expected to increase Eniro’s revenues with some SEK 50 M and EBITDA with some SEK 20 M on an annual basis.
“The agreement with 1888 will generate economies of scale and cost synergies for Eniro. The transaction will significantly increase the number of SMSs and telephone calls, which is positive in a market segment with declining volumes,” says Johan Lindgren, President and CEO of Eniro AB.
The information is such that Eniro AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publishing at 08:00 a.m. on February 1, 2013.
Eniro is the Nordic region’s largest local search company. Both consumers and companies can use Eniro’s services to easily locate where to buy services and products – regardless of whether the channel is internet, catalog or mobile. Advertisers can actively market themselves to interested consumers, find new customers and increase sales.
Eniro has approx. 3,500 employees in the Nordic region and Poland and has been listed on Nasdaq OMX Stockholm since 2000. During 2011, Eniro’s revenues amounted to SEK 4,323 M and EBITDA was
SEK 991 M. Headquarter is located in Stockholm, Sweden. More on Eniro at www.eniro.com
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