Hexagon Announces One-Time Effects from Acquisitions of Vero, Mintec
STOCKHOLM, Sweden — Hexagon, following the acquisitions of the Computer Aided Manufacturing software provider Vero Software and the mine planning software provider Mintec, has identified overlapping technologies and assets. This will lead to a write-down which in combination with transaction costs from the acquisitions will impact Hexagon’s earnings for the third quarter of 2014.
The write-down relates to overlapping technology between Vero Software’s development of reporting tools for manufacturing data and Hexagon’s existing software in this area. The write-down also relates to overlapping technologies between Hexagon’s existing operations within mining (such as fleet management systems) and Mintec. Also transaction costs (tax and legal advice) from the two acquisitions will have an impact on the third quarter of 2014.
Consequently, Hexagon will record in the third quarter of 2014 non-recurring items that total -17.8 MEUR.
In addition to these non-recurring items recorded in the third quarter, Hexagon will see a negative impact stemming from acquired deferred revenues (revenue haircut) of Vero Software and Mintec. This accounting effect will negatively impact sales and earnings for the third and fourth quarter of 2014 with approximately -2 MEUR in both quarters.
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