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Products and solutions, 2000-04-05, 02:00 AM

ThyssenKrupp Information Services acquires HiServ &#8211; <br> Leadership position with annual sales of more than DM 800 million

Thyssen Krupp Information Services GmbH, Essen, a subsidiary of Thyssen Krupp Materials &amp; Services AG (TKMS), D&uuml;sseldorf, has acquired HiServ Hightech International Services GmbH with effect from May 1, 2000. HiServ is a subsidiary of the Aventis group. By acquiring this international IT company, TKMS will be expanding and strengthening its FacilitiesServices segment. The acquisition is subject to clearance by the antitrust authorities. The parties have agreed not to disclose the purchase price.

Nearly DM 1 billion in sales

ThyssenKrupp Information Services, headquartered in Essen, will have total sales of more than DM 800 million and a workforce of 2900. Through this acquisition, ThyssenKrupp Information Services will move considerably closer towards its medium-term goal of achieving DM 1 billion in sales. The company ranks among the largest manufacturer-independent system companies in the German market. With contracts for 400 systems, ThyssenKrupp Information Services is also Europe&#146;s leading provider of SAP R/3 services.

HiServ was formed in 1996 as an independent IT service company within the Hoechst Group. The range of services offered by HiServ include the development of global information systems based on SAP R/3 and the required hard- and software platforms, the operation of computer centers, including those of the companies that belong to the Aventis Group, the establishment of worldwide data networks as well as the provision of the latest technologies such as Internet, intranet and e-mail. At the end of April 2000, HiServ employed approximately 1,300 people in 11 countries. In 1999, the company generated sales of around DM 300 million. In addition, HiServ has increasingly been focusing on e-business applications, thereby capitalizing on its own computer centers in the greater Frankfurt area with high-speed access to DE-CIX (Commercial Internet Exchange), the German Internet hub.

Prior to the acquisition, ThyssenKrupp Information Services had sales of more than DM 500 million and employed 1600 people. Its core businesses include IT outsourcing, e-business, speech-data communication, applications development as well as training and education.

Strong international expansion

By acquiring HiServ, ThyssenKrupp Information Services is gaining access to a powerful international organization with subsidiaries in Australia, Brazil, Belgium, China, France, Italy, Singapore, the UK and the United States. The company will be represented at 16 locations within German-speaking Europe. Dr. Thomas Ludwig, member of the Board of Management of Thyssen Materials &amp; Services and responsible for the FacilitiesServices segment, said: "A high degree of internationalization is a key competitive advantage when participating in high-volume international tenders. "

The proportion of TKIS customers outside of the Thyssen Group will increase by up to 20 percent from its current level of 50 percent as a result of the acquisition of HiServ. The new corporate group will also be well-positioned to serve Aventis and will thus be able to capture additional market potential in the chemical and pharmaceutical industries.

Commenting on the transaction, Dr. Peter Chylla, Chairman of the Board of Management of ThyssenKrupp Information Services, stressed: "Due to their similar operating sectors, the two companies complement each other very well. At the same time, the international organization of HiServ will considerably strengthen the international focus of ThyssenKrupp Information Services. In addition, faster access to the World Wide Web in Frankfurt offers interesting prospects for our e-business efforts. In brief: the acquisition will enable us to create and enhance considerable value".

Dr. Ulrich Bos, managing director of HiServ, added: "By joining forces, the new corporate group will have excellent know-how and insights into the complex IT-requirements of not only the engineering, but also the chemical and pharmaceutical industries. We will thus have the best prerequisites for our further expansion as a full-service provider in the rapidly growing IT market and be able to guarantee our customers around the world state-of the-art technologies."

Integration into a new corporate segment

Through the acquisition, ThyssenKrupp Materials &amp; Services is resolutely continuing to expand its FacilitiesServices. To summarize the strategic importance of the acquisition, Dr. Thomas Ludwig said, "We want to become a single-source supplier with a global presence. Our IT services will play a key role here. With HiServ, we are taking on a new dimension that will make us one of the leading companies in the sector. "

With its corporate segments of MaterialsServices and FacilitiesServices and a workforce of 30,000, Thyssen Krupp Materials &amp; Services AG, D&uuml;sseldorf, generates annual sales of over _10 billion and is leader in both these submarkets. MaterialsServices is among the world&acute;s biggest single-source suppliers of basic and quality grades of steel, tube/pipe, stainless and tool steels, nonferrous metals and plastics. With its linked service centers in Europe and North America TKMS offers its customers a highly efficient distribution network. With FacilitiesServices TKMS holds a position as full service provider to industry and real estate. All capabilities in the fields of facility, industrial and building systems including IT services are bundled. These activities are designed to handle on behalf of the customer all those chores that are not part of core business.

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