S&T subsidiary Kontron Technologies acquires HC Solutions

Friday, 22nd January 2021

Austria

Linz, 22 January 2021 - S&T AG (ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock code: SANT) has acquired 100% of the Linz-based company HC Solutions GmbH (HCS) through its wholly-owned subsidiary Kontron Technologies GmbH (KTEC).

HC Solutions GmbH was founded in 1991 and is a software company that offers its customers software development and maintenance as well as IT consulting. They also implement software development projects for their customers and sell software licenses for the products they develop. HCS's strengths include long-standing relationships with key customers and an experienced development team with detailed know-how in the latest technologies.

HCS revenue amounts to approx. EUR 7 million for the financial year 2020, with slight losses and negative equity. Delays to customer projects because of COVID-19 led to a decline in sales over the past financial year. Backed by the strength of S&T Group, they should exceed the previous year's results during 2021 and continue the positive equity ratio trend. A fixed purchase price of EUR 0.7 million was agreed. Approval was granted by the antitrust authority as of yesterday, HCS is therefore to be included in the scope of consolidation of the S&T Group as of February 1, 2021, and integrated into the IoT Software division and also legally merged with KTEC in the first half of 2021.

This merger will increase the software engineering competencies and resources of the S&T Group and will lead to an expansion of KTEC's existing engineering capabilities, particularly in the areas of Java, database programming and testing, mobile applications, and SAP consulting. Being located in Linz will also result in further advantageous synergies.

Hannes Niederhauser, CEO S&T AG: "The acquisition of HC Solutions strengthens our software engineering team in Linz so that we can broaden our customer base and serve our existing customers even better. I am pleased that we are also starting this year with an acquisition that will help us achieve our strategic goals."