EQS-News: DATAGROUP adopts comprehensive package of measures to increase shareholder value

DATAGROUP adopts comprehensive package of measures to increase shareholder value

• Share buyback of up to 9.79 % of the share capital
• Spin-off of digitalization subsidiary Almato AG under review to enable clearer positioning of both companies and strategic focus on further organic growth
• 1:1 spin-off and stock market listing of the new Almato share planned
• Dividend to be suspended in favor of the first two steps
• Change of the listing of DATAGROUP SE shares to segment m:access of the Munich Stock Exchange planned with full retention of the previous level of transparency
• Company guidance for the 2023/2024 financial year fully confirmed, preliminary figures to be published as planned on November 21, 2024

Pliezhausen, November 16, 2024. The Management Board and Supervisory Board of DATAGROUP SE (WKN: A0JC8S) have decided on a comprehensive package to increase shareholder value. In addition to a share buyback of up to 9.79 % of the company's share capital, the spin-off of the subsidiary Almato AG ("Almato") at a ratio of 1:1 is being examined. The dividend payment for the 2023/2024 financial year is to be suspended in favor of these two steps.

Almato operates in the field of digitalization of business processes and software development. The business model differs fundamentally from DATAGROUP with its IT outsourcing offering CORBOX, which is based on long-term contracts. According to the company, the spin-off will enable both companies to position themselves more clearly on the market in the future and pursue their growth and future strategies in an even more focused manner.

In anticipation of increasing regulation for shares which, like DATAGROUP, are currently listed in the Scale segment of the Frankfurt Stock Exchange and in order to be able to act flexibly in the future, DATAGROUP plans to switch to the m:access segment of the Munich Stock Exchange. The current transparency level will be fully maintained. 

The aforementioned steps are intended to strengthen DATAGROUP's business model with an even clearer focus on the CORBOX core business. The Management Board hereby fully confirms the guidance for FY 2023/2024, the preliminary figures will be published next Thursday, November 21, 2024.

Share buyback of up to 9.79 % of the share capital

In order to take advantage of the low share price in the context of the current market weakness, the Management Board has decided on a share buyback program with a volume of up to 9.79% of the share capital, in accordance with the authorization of the Annual General Meeting 2023. The Board is of the opinion that the sustained good business performance, which sets DATAGROUP apart from the competition in a very positive way, is not reflected in the share price performance of the DATAGROUP share in the past months. Therefore, from November 20, 2024, up to 9.79 % (10 % less treasury shares of currently 17,541 shares) of the outstanding shares are to be acquired in the context of a public share buyback offer against payment of an offer price of EUR 42.13 per share. The repurchased shares can be used for all statutory use options such as redemption, use to finance company takeovers and also for employee share programs.

The corresponding ad hoc announcement is available under the following link: https://www.datagroup.de/en/investing/ir-information/, the offer document will be published in the Federal Gazette and on the DATAGROUP website on November 20, 2024.

Spin-off of digitalization subsidiary Almato AG under review to enable clearer positioning of both companies and strategic focus on further organic growth

Almato is active in the digitalization of business processes and in software development for companies and public institutions. In the future, Almato plans to significantly expand a new business segment with the software product Bardioc. Bardioc is a semantic data platform that is offered as Software-as-a-Service (SaaS) and enables the analysis of large volumes of data. The platform supports companies and public authorities in the implementation of AI applications, the implementation of highly complex data analyses for data-driven business models and the automation of processes. Bardioc is also aiming for international expansion.

The review of the spin-off and the listing of the 100 % stake in Almato is based on clear shareholder value considerations. The spin-off is to be implemented at a ratio of 1:1, i.e. each DATAGROUP shareholder will receive one Almato share for one DATAGROUP share without any additional payment. It is assumed that both companies will be valued separately at a higher level than in the current constellation. By separating the two different business and growth models, both companies will be able to position themselves more clearly in the market in the future and pursue their growth and future strategies in a more focused manner.

DATAGROUP will continue to concentrate on its proven and successful business model with a focus on its positioning as a leading IT outsourcing partner for the German Mittelstand and, above all, continue to drive organic growth.

In the past fiscal year, DATAGROUP began to optimize its own IT service production by using the AI technology HIRO and is already achieving consistently increasing, very good results. The productivity and efficiency of this proprietary IT service production is expected to increase significantly and margin levels are expected to increase considerably in the medium term through the use of the AI technology HIRO. The use of HIRO is developing into a unique selling point of DATAGROUP in the IT service industry and puts DATAGROUP in a leading position in terms of increasing organic growth.

As a pure software company with a strong focus on Software-as-a-Service (SaaS), Almato intends to position itself internationally with the Bardioc product and focus on key accounts in the future. Almato's independent positioning should enable the company to tap into the sources of financing required for its planned growth and the corresponding investments, including the capital market. It is expected that this independent positioning will also give Almato access to highly specialized tech investors. Almato currently generates planned annual revenues of around EUR 24 million and an EBIT margin of over 25 % with 150 employees.

The different business models of IT service companies such as DATAGROUP and software/SaaS companies such as Almato are valued differently on the stock exchange, a clear sharpening of the positioning of both companies therefore increases shareholder value from DATAGROUP's point of view. This is especially true as software and SaaS companies such as Almato can achieve higher valuation multiples due to better scalability and margins and a spin-off of Almato could therefore realize their higher valuation. The increased value of Almato AG would increase the overall value of the Group for shareholders, as DATAGROUP shareholders would receive one Almato share for each existing DATAGROUP share at a ratio of 1:1. 

In the company's opinion, the aforementioned steps contribute significantly to shareholder value. The company would therefore like to deviate from its previous dividend policy and suspend the dividend for the 2023/2024 financial year. Instead of the previous year's dividend volume of EUR 12.5 million, up to EUR 34.4 million will be returned directly to shareholders through the share buyback.

Change of the listing of DATAGROUP SE shares to segment m:access of the Munich Stock Exchange planned with full retention of the previous level of transparency

DATAGROUP also plans to move from the Scale segment of the Frankfurt Stock Exchange to the m:access segment of the Munich Stock Exchange. The trading opportunities in these segments are comparable. The company will maintain the usual level of transparency. The change of segment also takes place against the background that the legislator is considering introducing additional regulatory requirements for the Scale segment as an SME growth market, which do not apply to the other qualified OTC segments. For reasons of flexibility, the company had previously made a conscious decision not to list in a more highly regulated market segment. By switching to the established m:access, the company retains the regulatory status quo. In addition, lower costs are incurred in m:access.

Company guidance for the 2023/2024 financial year fully confirmed, preliminary figures to be published as planned on November 21, 2024

DATAGROUP confirms its revenue guidance for FY 2023/2024 in the range of EUR 510-530m. Earnings are expected to be in the range of EUR 77-81m for EBITDA and between EUR 43-46m for EBIT.

Invitation to the conference call on November 21, 2023

On November 21, 2024, DATAGROUP will publish the preliminary figures for FY 2023/2024. Two online conferences with Andreas Baresel, CEO/CFO, will take place on the same day.

Please register under the following links:

10:00 a.m.: German-speaking investor & press call:
https://montegaconnect.de/event/r6u00pqeivrqz1yl55wm43eq8zshmol0

15:00: English-speaking investor & press call:
https://montegaconnect.de/event/1qf6xd30pyeiwysvg7e5mktfshe26me2

About DATAGROUP

DATAGROUP is one of the leading German IT service providers. Some 3,500 employees at locations across Germany design, implement, and operate IT infrastructures and business applications. With its CORBOX product, DATAGROUP is a full-service provider, supporting global IT workplaces for medium and large enterprises as well as public authorities. DATAGROUP is growing organically and through acquisitions. The acquisition strategy is particularly noted for its optimal integration of new companies. DATAGROUP is actively participating in the consolidation process with its “buy and turn around” and its “buy and build” strategy.
www.datagroup.de

Investor & Press Contact

Anke Banaschewski
Investor Relations
anke.banaschewski@datagroup.de