dcsimg
RealTime IT News

Cell Network Buys, Consolidates European Net Firms

Swedish Internet company Cell Network Tuesday revised the terms of one of its recent acquisitions as it endeavors to take the top spot among Europe's Net consulting firms.

Cell Network AB and Mandator AB earlier this month agreed to merge, calling the agreement a merger on equal terms. The company will operate under the name Cell Network AB, which will have 1,800 employees and aggregate revenues of SEK 1.3 billion (US$ 11 billion) based on 1999 financial results. With the finalized deal, Cell Network shareholders will be offered 17 new Mandator shares for every 10 Cell shares.

After completion of the merger, 51.5 percent of the new Cell Network will be owned by Mandator shareholders, and 48.5 percent by shareholders of the old Cell Network. The prospectus for the new company is scheduled for release next month.

According the the two companies' respective management, the motivation for the deal is that interactive media is becoming an increasingly vital -- and thus increasingly competitive -- medium. Client initiatives are more extensive, multinational and complex, which in turn requires sophisticated business strategies and technology competencies. The merger meets that order as a full-range provider of integrated services-strategy, communication, technology, design and content, on an international scale.

Jan Carlzon, a Swedish business investor, will be proposed as chairman of Cell Network AB's Board and Marcus Backlund of Cell Network becomes Group President and Group CEO. Mandator's Niklas Flyborg will be President and Chief Executive Officer.

The new Cell Network will also expand aggressively via start-ups throughout Asia, while also seeking a link to the U.S. market.

Cell Network AB has also signed a letter of intent regarding the acquisitions of a string of European consulting firms, including WEB Internet Marketing Solutions S.r.l. in Milano, Italy, designSpirit Limited in the U.K. and Sarajarvi & Hellen Oy in Finland. Through designSpirit, the internationally renowned designer Lorraine Barclay will now be working for Cell Network.