STOCKHOLM, Aug. 15, 2019 /PRNewswire/ -- Tobii AB (publ) today announces that the company will be required by the UK Competition and Markets Authority (CMA) to divest Smartbox Assistive Technology Ltd. Tobii will now review CMA's complete report in detail and will in parallel initiate a divestment process.
The British competition and markets authority, CMA, today announced the final conclusions of its investigation and has required a full divestiture of Smartbox by Tobii. The CMA concluded that the merger may result in a lessening of competition in the UK.
Tobii strongly disagrees with the CMA's decision. Tobii believes that a merger of the two companies would have led to increased innovation and the possibility to provide a broader range of products, benefiting users with disabilities both globally and in the UK.
"We can only regret CMA's decision. We are convinced that the merger would have given positive effects for the many in need of assistive technology for communication. However, this was a relatively small acquisition relating primarily to complementing our software portfolio. A divestiture will therefore only have a limited impact on our strategy. Our long-term financial targets for Tobii Dynavox and Tobii Group remain intact", said Henrik Eskilsson, CEO, Tobii Group.
Background
On October 1, 2018 Tobii AB (publ) acquired Smartbox Assistive Technology Ltd, a UK based company operating in the field of assistive technology for communication. Tobii paid the owners/founders GBP 11 million in cash, corresponding to approximately SEK 130 million. Smartbox employs some 70 people. Net sales in 2017 were GBP 9,3 million, corresponding to approximately SEK 110 Million.
Upon the announcement of the acquisition, the CMA opened an investigation under UK competition law. The two companies' brands and operations have been held separate, pending todays completion of the CMA's review.
This information is information that Tobii AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on 15 August 2019, at 8:55 a.m. CEST.
Contact
Ola Elmeland, Investor Relations, phone +46-73-440-98-62 email: ola.elmeland@tobii.com
Nils Lindhe, VP Corporate Communications, phone: +46-768-94-84-84, email: nils.lindhe@tobii.com
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https://news.cision.com/tobii-ab/r/cma-requires-tobii-to-divest-smartbox,c2881424
The following files are available for download:
https://mb.cision.com/Main/2874/2881424/1090494.pdf | CMA requires Tobii to divest Smartbox |
