Solteq Oyj (STQ1V), a Finnish developer of software for the retail industry, jumped the most in 6 1/2 years after announcing plans for the acquisition of Aldata Solution Oyj (ALD1V)’s Finnish unit today.
Solteq advanced as much as 19 percent, the largest intraday gain since August 2005. Shares of the Tampere, Finland-based company climbed 4.6 percent to 1.14 euros at the close in Helsinki. Solteq, which has added 16 percent this year, was today’s fourth-biggest gainer on the OMX Helsinki all-share index.
“The deal adds growth potential for Solteq as its product portfolio expands deeper into the client’s value chain,” Petri Kajaani, an analyst at Inderes Oy in Helsinki, said in an e- mail. The company is “rolling up its sleeves” to grow as it buys a more profitable company at a relatively low price ratio.
Solteq agreed to pay 8.3 million euros ($11 million) for Aldata’s Finnish unit. It amassed funds to pay for the deal by selling its offices, agreeing on a 3.1 million-euro directed share issue and taking a bank loan, according to a statement. Pension Fennia and Varma Mutual Pension Insurance Co. will own 14.7 percent and 4.3 percent of the company’s shares respectively after the issue.
The funding structure is “positive” as it forms a long- term mutual dependence between Solteq and Fennia, which bought the office space, Kajaani said.
Solteq sees synergy benefits of as much as 1 million euros at the end of 2013, according to the statement. Solteq’s staff will increase by a third to 286 people as it takes on 74 employees from Aldata. The deal is expected to close this week, the company said.
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