Investing.com -- SoftwareOne Holding AG (SIX:SWON) on Thursday said it will buy Norwegian competitor Crayon Group (OL:CRAYN) in a deal valued at $1.4 billion.
Shares of the software and cloud solutions provider was up 7% at 4:25 ET (9:25 GMT).
The agreement involves a voluntary stock and cash offer to purchase all outstanding shares of Crayon, combining two major providers of software and cloud solutions.
This move aims to create a larger player in the global technology market, leveraging the strengths of both companies to address increasing demand driven by trends like cloud adoption, artificial intelligence, and cybersecurity.
The deal values Crayon at NOK 172.5 per share, offering its shareholders NOK 69 in cash and 0.8233 shares of SoftwareOne for each Crayon share.
This represents a 36% premium to Crayon’s undisturbed share price. The deal is expected to close by the third quarter of 2025, pending regulatory approvals and the acceptance of at least 90% of Crayon’s shares.
SoftwareOne described the merger as an alignment of complementary strengths, including geographical reach, customer bases, and service offerings.
SoftwareOne expects cost synergies of CHF 80-100 million within 18 months of the deal's completion, in addition to revenue synergies driven by expanded offerings and increased sales efficiency.
Daniel von Stockar, chairman of SoftwareOne, said the combination would create value for shareholders and employees. He called it a transformative step for both companies.
Raphael Erb, CEO of SoftwareOne, said the merger would enhance their ability to serve customers, strengthen partnerships with major technology providers such as Microsoft (NASDAQ:MSFT), and expand their capabilities to address emerging challenges in the tech landscape.
Financially, the combined company is expected to generate CHF 1.6 billion in annual revenue with an adjusted EBITDA of CHF 334 million, excluding synergies.
The cash portion of the transaction will be financed through bridge facilities of CHF 700 million, and SoftwareOne projects a net debt-to-adjusted EBITDA ratio below 2.0x by the end of 2025.
Crayon will nominate two members to join SoftwareOne’s board, and the combined entity will be led by Co-CEOs, ensuring continuity and collaborative leadership.