Merger instead of sale - Sycor strengthens its market position

The search for an investment partner that fits strategically to the Sycor Group, announced by the owner Hans Georg Näder the year before, has come to an end.

The managing partner of Ottobock Holding can now present Sycor's employees with a result: Instead of selling Sycor to potential investors, Näder has decided to position Sycor for the future through a merger.

It is planned that Sycor will join forces with the German IT company for business performance, Allgeier Enterprise Services, which is also active worldwide. The name of the new company, in the form of a European stock corporation, will include the Sycor brand name and the company will be headquartered in Göttingen.

Allgeier Enterprise Services is a division of Allgeier, one of the leading German IT companies for digital transformation. Since it can draw on the resources of the parent company, this affiliation opens up significant economies of scope for the companies that will work together in the future.

"This merger provides Sycor with the best conditions for growth"

is how Sycor Managing Director Jochen Schwiersch assesses the new situation.

"Based on the planned merger alone, I already see us among the leading medium-sized German companies in the IT consulting market."

Sycor's co-founder and long-time managing director, Rüdiger Krumes, adds:

"Together, we now want to pursue the goal of becoming the market leader in this segment. The portfolio of the two houses offers the best prerequisites for this, as they complement each other perfectly in terms of our customers' requirements."

Following the merger, which is now still planned and currently under review, the portfolio under the leadership of Allgeier as majority partner will continue to include consulting services ranging from strategy and process consulting to complete implementation, as well as managed services in the areas of application management, hosting and cloud.

From implementation, optimization, and expansion to operation, companies from medium-sized businesses and corporate groups can thus ensure the performance of their IT applications.

"With a growth strategy focused on innovations and future trends, we will jointly seize the opportunities of digitization in the future"

Hubert Rohrer, the CEO of Allgeier and Allgeier Enterprise Services, underlines the interest in this merger.

"Initially, the two companies will continue to operate independently in the market. In the future, they will jointly benefit from the advantages of size, internationality and complementary know-how under the Sycor brand for the benefit of the customers."

Rohrer continues.

A weighty decision point for the negotiating team, led personally by owner Hans Georg Näder, was the prospect that this planned merger would preserve the Sycor brand, the corporate culture, which is strongly based on employee orientation, and all of Sycor's existing jobs.

February 4, 2019 - UPDATE

Press Release

Sycor and Allgeier end merger talks

GOETTINGEN/MUNICH. The merger planned by the IT consulting company Sycor GmbH from Göttingen and the consulting subsidiary of Allgeier SE will not take place. During the discussions on a strategic road map to an IPO of the new holding company, different opinions arose on the organization and corporate governance of the holding company, the branding of the merged companies and the goal of an IPO. Therefore, the parties involved agreed today to terminate the merger talks.In November 2018, Ottobock Holding GmbH & Co. KG as Sycor's parent company and the Allgeier Group (Allgeier SE) agreed on the merger of the respective SAP and Microsoft divisions Sycor GmbH and Allgeier Enterprise Services AG (AES) under a new holding company in the legal form of an SE with Sycor in Göttingen as part of the company and a future IPO.The parties involved had pursued the goals of growing faster together and becoming a leading medium-sized German company in the IT consulting market.

2/2Sycor hereby ends its search for a partner and is now convinced that it can achieve its strategic goals of becoming one of the leading full-service providers for SAP and Microsoft Services in the growing IT consulting market with the full commitment of Ottobock Holding.The holding company is wholly owned by the Näder family of entrepreneurs.The close partnership between Sycor and the medical technology company Ottobock SE & Co. KGaA will be intensified. Sycor will continue to play an active role in the consolidation of the market and will receive appropriate financial support from its parent company. The medium-term goal of an IPO will be maintained. To this end, Sycor GmbH will be converted into a European stock corporation (SE) and thus a legal form capable of being listed on the stock exchange before the end of the year.