Hexagon announces one-time effects from the acquisitions of Vero Software and Mintec
Hexagon has following the acquisitions of the Computer Aided Manufacturing software provider Vero Software and the mine planning software provider Mintec identified overlapping technologies and assets. This will lead to a write-down which in combination with transaction costs from the acquisitions will impact Hexagon’s earnings for the third quarter of 2014.
The write-down relates to overlapping technology between Vero Software’s development of reporting tools for manufacturing data and Hexagon’s existing software in this area. The write-down also relates to overlapping technologies between Hexagon’s existing operations within mining (such as fleet management systems) and Mintec. Also transaction costs (tax and legal advice) from the two acquisitions will have an impact on the third quarter of 2014.
Hexagon will consequently in the third quarter of 2014 record non-recurring items of in total -17.8 MEUR.
In addition to the non-recurring items recorded in the third quarter of 2014, Hexagon will see a negative impact stemming from acquired deferred revenues (revenue haircut) of Vero Software and Mintec. This accounting effect will negatively impact sales and earnings for the third and fourth quarter of 2014 with approximately -2 MEUR and approximately -2 MEUR, respectively.
Hexagon (NASDAQ OMX Stockholm: HEXA B) is a leading global provider of design, measurement and visualisation technologies. Our customers can design, measure and position objects, and process and present data, to stay one step ahead of a changing world. Hexagon’s solutions increase productivity, enhance quality and allow for faster, better operational decisions, saving time, money and resources. Hexagon has more than 15,000 employees in over 40 countries and net sales of about 2,400 MEUR. Our products are used in a broad range of industries including surveying, power and energy, aerospace and defence, construction, safety and security, automotive and manufacturing. Learn more at www.hexagon.com.
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