NNIT A/S
The Danish Enterprise Authority has performed a compliance evaluation of NNIT A/S’ annual experiences as said in firm announcement 12/2022. Following dialogue with NNIT, the Danish Enterprise Authority has made a closing resolution affirming that the earn out fee associated to the acquisition of Excellis Well being Options shouldn’t be included in capitalized acquisition prices and goodwill, however as an alternative expensed as remuneration because the earn out is partially topic to the promoting shareholders’ continued employment throughout the accrual interval.
In consequence, NNIT is required to replace its accounting therapy of earn-out fee within the annual experiences from goodwill to particular gadgets as outlined beneath. An identical strategy shall be utilized to the popularity of earn out funds for different acquisitions, together with SCALES, Valiance Associate, HGP Group, SL Controls and prime4services.
The technical modifications to historic accounting insurance policies can have no affect on complete money circulation or the deliberate divestment of NNIT’s Infrastructure Operations Enterprise.
Affect on accrued revenue earlier than tax
The preliminary accrued revenue earlier than tax affect for the interval 2017-2021 is roughly DKK 165 million, which can primarily enhance particular gadgets. The long run affect for 2022-2025 associated to earn-out funds regarding the acquisition of Excellis Well being Options and different acquired corporations is estimated within the vary of DKK 100-150 million, relying on efficiency, and can enhance particular gadgets solely, with no affect on complete money circulation.
NNIT A/S intends to publish supplemental/corrective info to its annual report for 2021, together with comparative numbers for 2020, as quickly as doable.
NNIT A/S disagrees with the choice and considers it to be of principled nature for strategic acquisitions within the Danish IT service business, therefore intends to enchantment the choice to the Danish Commerce and Corporations Appeals Board.
Contact for additional info
Carsten Ringius
EVP & CFO
Tel: +45 3077 8888
[email protected]
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Media Relations
Tina Joanne Hindsbo
Media Relations Supervisor
Tel: +45 3077 9578
[email protected]
The NNIT Group supplies a variety of IT and consulting providers internationally.
In Denmark, the place the Group HQ is predicated, we’re one of many main IT corporations, servicing each non-public and public sector clients throughout all industries. In the remainder of Europe, Asia and USA, we’re solely targeted on corporations inside life sciences.
Supporting all the provide chain, we assist optimize inner firm processes, manufacturing, gross sales and buyer experiences:
We advise, construct, function and help, enabling digital transformation and clients to reap the complete potential of their organizations. Our position is to foster innovation and make the mark our clients and we aspire to. The NNIT Group consists of group firm NNIT A/S and subsidiaries SCALES, Excellis Well being Options and SL Controls. Learn extra at www.nnit.com.
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