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COMPAREX acquires DATALOG

Leipzig, 06.02.2012 - Global player with a soft spot for SMEs: leading IT service provider with German roots and revenues now exceeding a billion euros boosts its SME expertise.

IT service provider COMPAREX is taking over DATALOG Software AG with immediate effect. Founded in Munich in 1974, DATALOG is an IT service provider with a complementary portfolio and has established an extremely strong position in the German SME market. Building on its global presence and comprehensive vendor-independent range of services, and strengthened by this expertise in the SME sector, in future COMPAREX will be able to provide tailored IT services to international companies of any size. The acquisition reinforces COMPAREX's leading position in the important German market already cultivated by the company and opens up huge growth potential in the highly sought-after SME segment.

The takeover will allow the two established IT service providers to further extend their leading positions in their respective specialist areas under the same umbrella. As the European market leader, COMPAREX has award-winning expertise in the software market. Based on close and long-standing relationships with software vendors, the Group is able to supply customized, cost-effective software licensing and software asset management solutions. COMPAREX provides IT services to some 15,000 customers worldwide, including public-sector bodies, industrial enterprises and global corporations from various segments of the economy as well as small and medium-sized enterprises. DATALOG's principal business activities likewise relate to software licensing, business consulting and state-of-the-art IT solutions. Long established as an IT service provider, DATALOG has proven experience in the SME market along with the financial services and healthcare sectors.

Integration is set to take place in stages, initially with both companies continuing to operate independently in their markets. Phase one will involve identifying strengths and potential synergies in order to generate additional growth. Existing agreements with employees, customers, manufacturers and partners remain unchanged. During phase two, which is expected to commence in December 2012, the two IT service providers will share a portfolio under the same COMPAREX brand. This is in keeping with the COMPAREX Group’s commitment to a single-brand strategy. When the process of integration is complete, COMPAREX will employ nearly 600 people in Germany. There are no plans to make redundancies or close any sites as a result of the acquisition for the reason that specialist fields and areas of overlap are already positioned highly efficiently and are operating extremely successfully.

Pooling strengths in the key German domestic market creates a variety of benefits for customers, partners and employees. It represents a good basis for further growth in solutions oriented around specific customer and industry requirements. Walter Denk, General Manager of COMPAREX Germany, will continue to be responsible for operations in Germany. He looks forward to leading an even stronger, multiple award-winning provider of IT services to a new level while maintaining high rates of growth. For him, delivering reliable and competent support is a crucial success factor in long-standing customer relationships built on trust. From Munich originally, as a top manager Denk knows that this can only be achieved with dedicated, skilled employees. Offering creative freedom and continuing professional development are therefore priorities within a forward-looking, international organization.

Statement by Dr. Klaus Elsbacher, CEO of the COMPAREX Group: "There is virtually no other customer segment that is as sought-after as the German SME sector. Teaming up with DATALOG puts us further ahead of the competition and offers customers real added value: a combination of a comprehensive, cross-vendor portfolio, proven SME expertise and support with international reach. This opens up additional growth potential for the COMPAREX Group, taking us another step closer to our ambitious objective of doubling global sales to two billion euros in three years."

Statement by Achim Herber, CEO of DATALOG Software AG: "DATALOG is an established, highly profitable IT service provider on a healthy, constant upward trend. In fiscal 2011, our employees achieved the most successful results in the company's history thanks to their high level of commitment and exceptional professional expertise. We are now at the point where we want further expansion to proceed on a broader basis. In the international COMPAREX Group we have found the ideal partner for successful, high-growth corporate development. In view of their extensive IT services and solid, long-standing relationships with customers and vendors, the two companies are an excellent fit. By pooling our respective strengths, and benefiting from our international reach and highly skilled staff, together we are set to occupy an outstanding position in the market."

Portfolio and customers

For customers the merger translates into a number of advantages: as well as IT services at an international level they will benefit from special purchasing terms with vendors, for example, and an extended portfolio of offerings such as industry-specific solutions and the COMPAREX MultiVendor Helpdesk. All customers are to retain their dedicated points of contact.
Founded in 1974, DATALOG has comprehensive knowledge of Microsoft's product range and is one of Germany's most important software licensing partners. Further key areas include business process optimization, contract management, software asset management and IT service management. Headquartered in Munich, the company also has an office in Düsseldorf and currently employs 120 people.

As an IT service provider with many years' experience, COMPAREX is predominantly a partner to major corporations, SMEs with international operations as well as organizations in the public sector, industry and healthcare. The Group's portfolio is focused on software, particularly licence and software asset management, consulting and services. Through the acquisition of DATALOG, COMPAREX is further consolidating its position as the number one Microsoft Large Account Reseller (LAR) in Germany. The company holds more than 2,350 certifications from around 55 vendors, including Microsoft, Citrix, VMware, Adobe, Symantec, McAfee as well as Hitachi, IBM and EMC. From its headquarters in Leipzig COMPAREX manages 75 offices in 28 countries, of which ten are in Germany.

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