SONERA BUYS SWEDISH FRONTEC SUPPORT AND OPERATIONS FOR 55 MLN SK (~5,5 M USD)
(The following is a reformatted version of a press release issued by Sonera Oyj.)
Helsinki, Dec. 5 -- Sonera Juxto combines forces with Frontec Support and Operations AB to start providing ASP services in Sweden
Sonera Corporation (HEX: SRA, Nasdaq: SNRA) has purchased the entire share capital of the Swedish application services company Frontec Support and Operations AB (FSO) from the parent company Frontec AB. The organization now purchased will form Sonera Juxto AB, which will start providing Sonera's ASP services in Sweden. In addition, Sonera Juxto AB and Frontec AB have agreed on starting cooperation in selling and marketing.
Frontec Support and Operations AB provides management services for Frontec AB's e-business customers. The services comprise data system management and support services. Under the agreement, FSO's management services business, support services, customer agreements and application services provision are transferred to Sonera Juxto. At the time of purchase, the price of the deal is SEK 55 million. The final price will be determined by the company's financial result in 2001, the maximum price of deal being SEK 70 million.
"Frontec Support and Operations AB's experience in the Swedish application services market and the needs of the Swedish customers as well as the skillful personnel are a welcome addition to Sonera Juxto, now that the company is expanding its operations to Sweden," says Senior Vice President Jukka Leinonen of Sonera. "Sonera Juxto AB will be responsible for the provision of Sonera's ASP services in Sweden and focus particularly on developing the wireless use of application services."
"In the future, Frontec AB will focus on consulting related to eBusiness," says Per Tjernberg, CEO of Frontec AB. "ASP services are an interesting part of eBusiness. Sonera has both the ambition and the resources to provide new kinds of advanced ASP services in Sweden. Sonera's mobile Internet expertise provides significant added value for the customers."
The estimated revenues of FSO in 2000 amount to SEK 47 million. The company employs 58 people. The personnel will continue in the company, retaining seniority.
Sonera Juxto aims to become an internationally significant provider of application and management services. The company focuses particularly on providing access to application services from wireless terminal devices. ASP (Application Service Provision) is business in which a corporate customer rents a package comprising a licence to use applications and services, and the building, maintenance and updating of the applications and services concerned from an application service provider. In addition to application services, Sonera Juxto provides infrastructure management services covering workstations, mobile phones and other wireless communications devices, LANs, remote networks, servers, data processing platforms and partly also customer applications.
For further information, please contact:
Senior Vice President Jukka Leinonen, Sonera tel. +358 2040 66831, +358 40 553 7071 e-mail: jukka.leinonen@sonera.com Welcome to the press conference On Tuesday, 5 December 2000 at 9 a.m. (local time) World Trade Center, meeting room Paris, Klarabergsviadukten 70, Stockholm, Sweden
The press conference will be broadcast live on the Internet and is later available on-demand. You can take part in the virtual conference at www.sonera.com
quote.bloomberg.com
/Joar |
