Deutsche Bank is to offload its Emagine solutions subsidiary to computer services company GFT Technologies in return for a 25 per cent stake in the combined group.
The merger of GFT and Emagine creates one of the leading professional IT solutions providers in Europe. The combined company will employ 1500 staff and have estimated pro forma 2001 revenues of EUR175 million.
GFT says the transaction will expand its expertise in security and middleware technologies and deepen its knowledge of financial services - the largest end user market for IT spending in Europe. In particular, GFT will be the preferred strategic partner to Deutsche Bank for integrated IT solutions. The bank says it will also provide introductions to its large corporate customer base.
GFT is already a prominent supplier to Deutsche Bank. The company was heavily involved in the development of Deutsche's investment and business portals maxblue and Xavex. GFT also developed 'TradeGate', an electronic transaction platform for trading fixed income securities.
In exchange for its share in Emagine, Deutsche Bank will receive approximately 6.6 million newly issued GFT shares, representing 25 per cent of the outstanding capital of the combined group.
Roland Hartner, an Emagine board member says the integration process, which has already been initiated during negotiations, is expected to be completed by the fourth quarter of 2001.
In the financial year 2000, Emagine notched up EUR60 million in revenues. The business currently employs a total of 717 staff at Eschborn (company headquarters), Berlin, Barcelona, Cambridge, Madrid, Valencia, Zaragoza and New York. Its client base includes banks and multi-national corporations, including Citibank, Dresdner Bank, Deutsche Borse, HypoVereinsbank, Sal Oppenheim and Vodafone.