Elisa Corporation, press release 20 March 2017
Elisa has entered into an agreement with Santa Monica Networks (SMN) Group to acquire SMN companies in Finland and Estonia. SMN specialises in secure IT networks and data centre solutions. SMN Group companies in Latvia and Lithuania to be acquired by the Baltic private equity firm Livonia Partners together with management. This transaction fulfils Elisa's strategy to strengthen its market position in the Finnish and Estonian markets.
In 2016, the revenue of the acquired companies stood at EUR 44 million and EBIT approximately EUR 3 million. Santa Monica Networks employs 73 people in Finland and 36 people in Estonia.
The acquisition price (EV) in the transaction is EUR 28 million which will be paid in cash. The completion of the transaction is subject to certain conditions, including approvals by the competition authorities in Finland and Estonia and the transaction is expected to be completed by 1 May 2017. The transaction has no impact on Elisa's financial guidance for this year. The acquired businesses will be reported as part of Elisa’s Corporate Customers business.
“With this transaction, we strengthen our Corporate Customers segment in the design, construction and maintenance of secure customer-oriented network solutions. The increasingly digital environments of our customers require continuously faster reactions to different situations. We will significantly increase this capability with Santa Monica Network's solutions and expertise,” says Jorma Niemelä, Vice President at Elisa.
“Santa Monica Networks has reached a growth stage where it requires a strong owner to develop the company and new services for even broader markets. Considering our customers and employees, Elisa is the best option, and I am really happy about this solution. By combining the top expertise of our companies, we can offer superior expertise on the Finnish scale. Together, we are able to provide our customers with new services and even broader solutions in the area of secure corporate networks. Our aim is to offer unique customer experiences, and we are now able to provide end-to-end communications from a single point,” says Kai Vuokko, Managing Director of Santa Monica Networks.
Elisa is a telecommunications, ICT and online service company serving 2.3 million consumer, corporate and public administration organisation customers. Elisa provides environmentally sustainable services for communication and entertainment, and tools for organisations to digitalise their operations and improve productivity. In Finland, Elisa is the market leader in its field. Cooperation with Vodafone and Telenor enables globally competitive services. Elisa is listed on Nasdaq Helsinki Large Cap with approximately 200,000 shareholders. In 2016, Elisa’s revenue was 1.64 billion euros, and the company employed 4,300 people. www.elisa.com
Santa Monica Networks in Finland and in Estonia specialises in providing secure solutions for data networks and data centres. We use the best technologies, the latest information and the best talent in the industry. Our customers include Finnish and Estonian publicly listed companies as well as large and medium-sized businesses that need high-level expertise in data networks and security, rapid response times, and a dedicated partner. We offer network and data centre solutions developed for international use that ensure business excellence in complex environments – always wrapped up in an easy-to-implement package. Our goal is to actively assist our customers when they wish to develop their business through the use of secure data networks. www.smn.fi and www.smn.ee
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