Sopra Steria: FY earnings up 28.1% and planned aquisition

(CercleFinance.com) - Sopra Steria has published a 28.
1% increase in 2019 net income, group share, at 160.3 million euros, with operating profit from activity rising by 15.1% to 354.3 million euros, meaning a margin of 8%, up slightly from the 7.5% in 2018.

The IT services group recorded an 8.3% increase in revenues to 4,434 million euros, with organic growth of 6.5%, and net cash flow of 229.3 million euros (vs. 173.1 million euros in 2018).

Sopra Steria will propose a dividend of 2.40 euros per share. For 2020, it expects organic growth of between 3% and 5%, with a slight improvement in its operating margin of activity, with net cash flow of over 180 million euros.

Alongside its results, Sopra Steria announces that it has signed an exclusive negotiation agreement to acquire 94.03% of the share capital of Sodifrance, at a price of 17.10 euros per share, to create a leader in digital services dedicated to insurance and social protection.

The acquisition of this controlling block, which would be fully paid in cash, would lead to Sopra Steria's filing a public repurchase offer followed by a squeeze-out on the remaining shares in issue.

Sodifrance has 1,160 employees and reported 2019 sales of 106.5 million euros. The deal, set to occur at the end of Q2/start of Q3, depends on the usual conditions being met.


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