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Sopra Steria Group: With the acquisition of Tobania, Sopra Steria will double its market share in Belgium

(BFM Bourse) – The digital services company has signed an agreement to acquire this company, whose turnover is estimated at 110 million euros. This merger can also generate synergies.

Sopra Steria is still hungry for acquisitions. The digital services company had decided in July to launch a major external growth operation with the proposed €282.5 million debt-free acquisition of French company CS Group, which specializes in the design, integration and operation of critical systems. The transaction is expected to close in the first quarter of 2023.

This time, the company managed by Cyril Malargé has decided to reinforce itself throughout Quiévrain. Sopra Stera on Friday announced a project to buy Belgian company Tobania, as well as its parent company Assua and its subsidiary Python Predictions.

The digital services company has signed a share agreement with the founders of Tobania, according to which Sopra Steria Benelux will acquire 100% of the shares in Assua.

200 million euros accumulated

Tobania, a consulting and digital services company, was formed in 2014 from the merger of two companies, Saga Consulting (founded 1990) and Tobius (founded 2006), similar to Sopra Steria, which was formed from the marriage of Sopra and Steria in early 2015.

The Belgian company employs 650 people and expects sales of 110 million euros this year. “All of this turnover is generated in Belgium: 45% in the financial services and insurance sector, 15% in the public sector and 18% in the telecommunications and media sector,” specifies Sopra Steria.

The new company would generate total sales of more than 200 million euros, allowing Sopra Steria to double both its size and market share in the country. The company also cites the benefit of “commercial and operational synergies” generated by the transaction. The group plans to complete this operation in the first quarter of 2023.

The market appreciates

“This merger project fits perfectly into our development strategy. It would strengthen our positions in what are defined as strategic markets in Europe, benefiting from our target verticals and a key account strategy. It is also part of an approach aimed at cultivating the entrepreneurial model that makes our difference,” said Cyril Malargé, quoted in a press release.

“While Sopra Steria should complete the acquisition of CS Group in the first quarter of 2023, the company remains active in M&A [fusions-acquisitions, NDLR] with a new operation that appears attractive at first reading,” stresses Invest Securities. “Assuming profitability and a price paid similar to those of Sopra, the operation should cost less than 70 million euros,” continues the financial intermediary.

“With the integration of CS Group and Tobiana, the scope effect should reach +7 points [de revenus] in 2023. A contribution not seen since the merger of Sopra and Steria in 2014. A sign that the new CEO, Cyril Malagré, wants to shape and drive the group’s strategy,” the design office also analyzes.

The market welcomes these announcements. At around 3:30 p.m. on the Paris Stock Exchange, Sopra Steria shares rose 2.8% to 145.20 euros.

Julien Marion – ©2022 BFM Stock Exchange

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