CANCOM SE: CANCOM successfully completes major step in acquisition of KBC Beteiligungs GmbH

• Transaction creates a new strong player in the IT services market with a significant presence in the DACH region.
• Executive Board of CANCOM SE to be expanded to three members.
• Updated forecast for the financial year 2023.

Munich, Germany, 25 May 2023 - The Executive Board of CANCOM Group today signed the contribution agreement with the shareholders of KBC Beteiligungs GmbH following the expiry of the cartel reservation, thus taking a major step in the takeover of KBC Beteiligungs GmbH. The transaction is expected to be completed at the beginning of June with the entry of the implementation of the capital increase in kind of the CANCOM Group in the commercial register, which was part of the transaction. Once the transaction has been completed, KBC Beteiligungs GmbH, together with its operating subsidiary K-Businesscom AG and its affiliated companies, which with their 1,650 employees generated total revenues of around € 520 million and EBITDA of € 28 million in the past financial year, will belong to the CANCOM Group. The volume of the cash and share components of the transaction amounts to around € 165 million. Furthermore, existing financial liabilities of K-Businesscom amounting to € 37.5 million will be repaid in the short term as part of the transaction. Part of the transaction is a capital increase against contribution in kind at CANCOM SE with the issue of 3.5 million new no-par value bearer shares to the shareholders of KBC Beteiligungs GmbH by utilising the Authorised Capital I/2018.

The transaction clearly strengthens the market position of both companies in the DACH region. “The outstanding market position and geographical presence and the expertise of K-Businesscom are a perfect fit for CANCOM. Particularly in the areas of portfolio, logistics and customer access, there is potential for synergies and we are gaining many highly specialised experts in the areas of communication, security and digital solutions," says Rüdiger Rath, CEO of the CANCOM Group, summarising key considerations behind the transaction. "The takeover of K-Businesscom is the largest acquisition in CANCOM's history and I look forward to working with our new colleagues in the coming years to further expand CANCOM's position as a leading hybrid IT service provider."

"CANCOM Group and K-Businesscom are two companies whose values, culture, competencies and ambitions are a good match," explains Franz Semmernegg, CEO of K-Businesscom. "The combination of the two companies creates a unique combination of expertise, customer access, partnerships and infrastructures that we will bring together and develop in the coming years to continue to serve our customers as a leading digitalisation partner."

CANCOM SE Executive Board to be expanded to three members
The merging of the two companies is taking concrete shape with the arrival of Jochen Borenich, previously Chief Operating Officer at K-Businesscom, as Chief Sales Officer on the Executive Board of CANCOM SE from 1 August 2023. In return, Rüdiger Rath and Thomas Stark will assume mandates as Supervisory Board members of K-Businesscom AG from 25 May 2023. Franz Semmernegg, CEO of K-Businesscom, will continue to lead K-Businesscom and join the Executive Circle of the CANCOM Group.
"The forthcoming integration of K-Businesscom and its subsidiaries into the CANCOM Group opens up a great deal of potential for all employees, partners and customers," says Rüdiger Rath. "We look forward to starting new and interesting projects with our colleagues in the coming months and to jointly expanding our position in the European IT market."

Forecast for the CANCOM Group is updated
As the contribution of the KBC Beteiligung GmbH Group is expected to be included in the CANCOM Group's result for the 2023 financial year from 1 June 2023, the forecast development of the CANCOM Group changes. The Executive Board now assumes the following development in financial year 2023 and has updated the forecast for the CANCOM Group accordingly: 

About CANCOM
As a Hybrid IT Service Provider, CANCOM accompanies organizations into the digital future. CANCOM supports customers to simplify complex enterprise IT and increase their business success through the implementation of modern technology. In order to comprehensively meet the IT needs of companies, organizations, and the public sector, CANCOM delivers tailor-made IT end to end from a single source.

The CANCOM Group’s range of IT solutions includes consulting, implementation, services, and the management of IT systems. Customers benefit from the extensive expertise as well as a holistic and innovative portfolio that covers the IT requirements that are necessary for a successful digital transformation. As a hybrid IT integrator and service provider, the Company provides an integrated range of services and solutions including business solutions and managed services, such as cloud computing, analytics, enterprise mobility, IT security, hosting, and as-a-service offerings.

With more than 4,000 employees, CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland and Belgium. The CANCOM Group is led by Rüdiger Rath (CEO) and Thomas Stark (CFO). The company is headquartered in Munich, Germany. CANCOM generated revenue of around € 1.3 billion in the financial year 2022. Its parent company CANCOM SE is listed in the SDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

About K-Businesscom AG
K-Businesscom (formerly Kapsch BusinessCom) is Austria's leading ICT solutions and service provider and digitalisation partner. KBC combines certified technology expertise with industry know-how as a consultant and end-to-end digital business engineer. In the DACH region, Romania and the Czech Republic, the company develops new business models with its customers on its own KBC platforms with IoT, AI and other software applications. K-Businesscom also accompanies its customers on their Cloud Transformation Journey and in the development of Smart Offices. The KBC Cyber Defense Center provides 24/7 protection against cyber-attacks. The basis for all of this is the 130-year innovative strength of the Kapsch Group and the many years of experience of KBC as a market leader for network solutions, collaboration, data centre infrastructure, security and managed services. Combined with the technologies and services of numerous international manufacturers such as Cisco, Microsoft, HPE and AWS. The employees of K-Businesscom are convinced that digital technologies can create value, protect the environment and improve our standard of living. With its digitalisation expertise, KBC wants to make a significant contribution to the promotion of the European data economy in connection with corresponding sustainability in the coming years.

Contact
Florian Mangold
Specialist Investor Relations
+49 (0)89 54054 5511
florian.mangold@cancom.de

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