Sodifrance acquires the API Group, thereby strengthening its position in the Banking-Insurance sector

Sodifrance acquires the API Group, thereby strengthening its position in the Banking-Insurance sector

This targeted transaction is in line with Sodifrance's core
acquisition strategy and constitutes a key step towards achieving
the objective of €80 million of turnover in 2008.

The API Group is solidly positioned in Banking-Insurance in Paris

The API Group is a Paris-based computer service and engineering company. Created in 1984 by Mrs. Christèle Pietton, the company has 234 employees and works with key Parisian accounts, providing Mainframe and new technology expertise in third party applications maintenance and technical assistance.

In 2006, the company posted turnover of €14.7 million and in 2007 should achieve turnover of more than €15.5 million with operating profit of around 7% in the second half of the year.

A strategic acquisition

This transaction fits perfectly into the acquisition strategy Sodifrance presented in its annual results:

4 with the API Group acquisition, which generates 74% of its turnover in the Banking-Insurance-Pension sector, Sodifrance strengthens its position (65% of turnover) in this strategic sector. With this move, Sodifrance joins the TOP 10 in the Insurance sector in France (source PAC).

4 Sodifrance now has 310 employees in the greater Paris region, which constitutes a significant step towards reaching a critical size in this market. Sodifrance now has two major business areas of comparable size: Paris and the Great West.

For Franck Mazin, Chairman of Sodifrance's Executive Board: "We are delighted to welcome a team that is enthusiastic about our project. API's sector specialisation and the quality of its clientele combined with our value added solutions strategy should give us major advantages to grow solidly in Paris. This acquisition strengthens our objective of €80 million of turnover in 2008 and should enable us to exceed at this time the objective of 7% operating profit."

The acquisition of the API Group creates strong sales synergies and will enable Sodifrance to capitalise on the critical size effect, with:

4 A significant strengthening of staff, which increases from 596 to 830 employees;

4 An increased Banking-Finance sector approach, which will enable the group to develop references in the sector and capitalise on the consultants' business sector skills;

4 A means to implement Sodifrance solutions for the automated transformation and development of new technologies in major Parisian accounts;

4 The ability to promote Sodifrance's equipped and industrialised regional Service Centres to the Parisian clientele.

For Christèle Pietton, the API Group's founder: "Sodifrance's skills and technological expertise combined with our historical presence with major accounts in Paris will create a new momentum and open new opportunities for our employees. We are delighted to join Sodifrance."

Terms of the transaction

The acquisition involves 100% of the API Group's capital and will be financed through borrowing and self-financing.

New objectives for 2007

The consolidation in the Group's financial statements will be carried as of 1 July 2007. Sodifrance now expects 2007 turnover of more than €55 million. The objective of operating profit greater than 6% over the entire year is confirmed.

For more information: www.Sodifrance.fr