F-Secure From Finland Acquires French Steek

F-Secure Corporation from Finland announces the acquisition of Steek SA, an European software provider for online storage and data management solutions to fixed line and mobile operators. Steek SA is recognized for its services that enable consumers to store, share and manage personal digital content with PCs and mobile phones.

The acquisition further strengthens F-Secure’s position as the leading Software as a Service (SaaS) partner for operators globally. Both the acquired solutions and operator partnerships are highly complementary to F-Secure’s existing business. The combined operations extend F-Secure’s growth opportunities within the rapidly developing fixed and mobile broadband services market.

Kimmo Alkio, President and CEO of F-Secure Corporation said: “By bringing the Steek technology and operator partnerships into F-Secure, we are further strengthening our competitive position in Software as a Service markets. This acquisition is a natural step in F-Secure’s strategy to broaden our Value Added Service (VAS) offerings to consumers. The rapidly developing online storage market gives us great opportunity to accelerate our operator revenue growth. This acquisition strongly supports our pursuit of driving innovation and growth for internet related services.”

During the second half of 2009 (after the consolidation) the acquisition is estimated to improve the Group’s operator revenues by EUR 2-3 million and be slightly EPS dilutive. In the long term the management estimates that the acquisition will improve the Group’s operator revenues significantly and it is estimated to be EPS accretive already during 2010.

Under the terms of the agreement, the cash and debt free purchase price is EUR 27.5m. In addition, F-Secure may pay in 2010 an additional purchase price of a maximum of EUR 2.5m based on the performance of the acquired business. The transaction price will be paid in cash and financed with the company’s liquid assets. The acquisition has been signed and closed. The acquired company will be consolidated to the Group from the beginning of July 2009.

Steek SA was founded in 2002 in Bordeaux, France and was privately owned by Venture Capital firms Innovacom, AGF Private Equity and the management. Steek has an operator centric strategy to develop and deliver online storage and data management related software services for the individual consumer and for small and medium-sized businesses. Its operator partner network includes SFR (France), Virgin Media (UK), TDC (Denmark), Singtel (Singapore) and Terra (Spain) that have all together more than 2.2 million active users. As a growth company Steek’s 2008 revenues grew over 300% to EUR 2.5m and showed a net loss of EUR 0.7m. The company currently employs 50 people.