(Oslo, 29 December 2010) The Board of Directors of EDB ErgoGroup ASA has approved the first phase of the synergy program announced in connection with the merger. This first phase of the program will include headcount reductions in staff and support functions, and also in IT Operations, totalling 105 employees, and will be completed over the course of the first half of 2011. The company will accordingly recognise a provision for restructuring costs in order of NOK 65 million in connection with its results for the fourth quarter of 2010. Provisions related to reduction of headcount in the total synergy program is estimated to be NOK 150 milllion which is in line with the information provided at the time of the interim report for the third quarter of 2010.
According to the interim report for the third quarter of 2010 there will also be total operational costs of NOK 150 million by second quarter of 2012 to realize the synergy program. In fourth quarter of 2010 the operational cost related to the synergy program is estimated to be NOK 10 million.
In addition EDB ErgoGroup will report NOK 25 million in operational cost in the fourth quarter of 2010 related to planning, detailing and implementation of the synergy program.
The total effect of cost synergies is estimated to be NOK 325 million, with the full effect realised over the course of 18 months.
Any enquiries may be addressed to:
Eli Giske, Acting CFO. Tel: + 47 908 44 189
Geir Remman, SVP, Corporate Communications. Tel: + 47 970 55 017
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Source: EDB ErgoGroup ASA via Thomson Reuters ONE
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