Nordic technology firm TietoEnator has transferred its SAP business in the German banking and insurance group to specialist firm Resco. It has also agreed to a management buy-out from its SAP Human Capital Management consulting team.
According to the plan, Resco, part of the Acando Group, will take over a part of TietoEnator's SAP businesses, related business agreements as well as 21 SAP experts working for the banking and insurance business group. The separate management buy-out by the consulting team involves 16 employees.
At the same time, the hosting operations with one employee will be internally transferred from banking and insurance to the processing and network business area. All changes are expected to take place on 1 June 2007.
The net sales of the SAP businesses that are being transferred from the TietoEnator Group totalled about EUR5.8 million in 2006, with an operating loss of EUR1.2 million. The capital loss from the transactions is expected to be approximately EUR4 million.
Martti Paajanen, head of TietoEnator Banking & Insurance Germany, says: "The divested SAP consulting services are non-industry-related businesses. Their role fits well with the new owners' strategy and business development plans. In the future, we will focus on areas where we are able to utilise synergy benefits from our existing solutions. In other industry expertise areas TietoEnator continues developing SAP business.
Michael Mörchen, managing director of Resco Germany, adds: "The role of the unit to be transferred fits well in Resco's strategy, business development plans and client base, especially in the field of SAP NetWeaver Technologies."