PIXELPARK BUYS 2 SWEDISH FIRMS
Byline: Melissa Drier
BERLIN — With a stock swap deal worth $2.3 billion, Pixelpark, the Berlin-based e-services company, is taking over the Swedish internet service firms Cell Network and Mandator. (All dollar figures are based on current rates of exchange for the Euro.)
The transaction will create what a Pixelpark spokeswoman described as “Europe’s leading provider of e-services.”
Earlier, this month the boards of the three firms agreed to a Pixelpark takeover of the business activities of the merged Cell Network/Mandator.
Under the terms of the agreement, current Pixelpark shareholders (including international media giant Bertelsmann, which is a majority shareholder with 58 percent) will have a 56.6 percent stake in the new Pixelpark Group.
Existing Cell Network/Mandator shareholders will hold the remaining 43.4 percent stake in the new Pixelpark enterprise.
Pixelpark was founded here in 1991. In 1996, Bertelsmann bought a majority stake in the multi-media service firm whose clients include Adidas-Solomon AG, Deutsche Borse AG, Habitat International, Lufthansa AG, Procter & Gamble, Siemens AG and the Yves Rocher Group.
Cellwork, based in Stockholm, is a leading e-service provider for business development on the basis of new digital media.
Its clients include General Electric, Nokia, Volvo, Renault, Saab, Bank Na-tionale de Paris, Ericsson, Torget (the Swedish Post) and Electro-lux Home.
Mandator, also based in Stockholm, operates 38 branches in Sweden, Norway, Denmark and Estonia. Mandator is one of Europe’s largest IT and e-service providers, whose expertise ranges from IT applications to product development, process control and business support.
The transaction will expand Pixelpark from a firm with about 500 employees to one with 2,300 employees and a market capitalization of $5.4 billion.
Pixelpark can now build on a dense European network with offices in Germany, Scandinavia, central Europe, Great Britain, Spain, Italy and Eastern Europe, and an additional presence in the US and Southeast Asia. In 1999, Pixelpark’s turnover hit $169 million.