The Oslo -based company, which ranks as one of the 50 largest IT services vendors worldwide, is said to be selling Netherlands-based MaXware for $1.5 million (E1.3 million) in cash and shares. The division provides software for directory security management, messaging and reporting, as well as some transaction-focused technology.
EDB has already undergone a complete overhaul of its management team this year as the company struggled with tough market conditions in the Nordic region. It is also in the process of cutting 140 people from its bank and finance practice, following the June closure of its 300-person strong Business Consulting division, which accounted for 7% of total revenue.
EDB said it intends to continue to operate and own its banking and finance businesses only in the Nordic region, while cooperating with strategic partners to target the market outside.
However, the restructuring has already cost the company one of its major banking clients, Terra-Gruppen AS, which cancelled seven contracts worth $50 million over the next three years. The bank said it would ask EDB to re-bid for the business. The cancellations are expected to cause a revenue shortfall of $21 million in 2005, and $29 million in 2006, at EDB.
This article was based on material originally published by ComputerWire.
