Adcore exits regional Swedish market

2001-05-15

Accordingly, Adcore and its management in the city of Karlstad have agreed to initiate negotiations regarding the management taking over operations from 1 April. The related MBL (Swedish legislation governing employee participation) negotiations are scheduled for 17 and 18 May 2001.

The related transaction will affect 14 employees, with related revenues of some SEK 12 m. The structural provisioning Adcore made in its Q1 2001 financial statement covers the financial consequences. The two parties have agreed on a close cooperation in the future.

Niklas Hellberg, who will be heading up the Karlstad operation, and was formerly CEO of NetGain, acquired by the then Information Highway last year, commented: “This is a good solution, where we can continue to offer specialist Java and IBM/Lotus Domino platform competencies to our regional clients.’

Overall, Adcore’s Swedish operations are profitable; its management anticipates positive long-term market progress with firm demand for Adcore’s services.

Sten Wranne, CEO of Adcore Sweden, added: “We’re strong in Sweden and will continue to offer comprehensive services in all locations where we are currently present. We’re undertaking a continual review with the intention of assuring our sustained profitability in Sweden, as on all markets.’

The transaction requires approval at an EGM (Extra General Meeting) to be convened as soon as possible.

Stockholm, Sweden, 15 May 2001, Adcore AB (publ).