Finland-based project management services firm Dovre Group announced that it completed the acquisition of Norwegian staffing and consultancy group Tech4Hire.

Dovre Group said that all customary closing conditions are now fulfilled and Tech4Hire is consolidated with the Dovre Group and reported as part of the Project Personnel segment.

Dovre Group announced its intention to acquire Tech4Hire on 27 March 2019.

The final enterprise value for Tech4Hire shares amounted to NOK 23.6 million (€2.4 million), including NOK 3.6 million compensation for disposable cash. As part of the transaction, the sellers used NOK 4.0 million (€0.4 million) to subscribe to Dovre Group shares. The sellers may also receive an additional consideration up to 10 million (€1.0 million), if certain financial targets are met by the end of 2019. Part of this potential additional consideration will be used to subscribe additional shares. Tech4Hire will be a fully owned subsidiary of Dovre Group Projects.

In 2018, Tech4Hire recorded sales of NOK 73.5 million (€7.6 million) and an EBITDA of NOK 3.7 million (€0.3 million).

In 2018, the combined net sales of the two companies on a pro forma basis would have been around €73.0 million, and the combined EBITDA would have been around €1.4 million.

Following the acquisition, Dovre Group's outlook for 2019 will improve and both sales and operating profit are expected to be improve due to the Tech4Hire operations. According to new guidance, Dovre Group's net sales in 2019 are expected to improve compared to 2018 and the operating profit is expected to be more than €1.6 million.

The transaction cost related to the acquisition are estimated to be €0.1 million.

In connection with the transaction, Dovre Group issued 1,777,978 new shares to the sellers of Tech4Hire AS in a directed share issue.

Dovre Group will apply to have the new shares listed alongside other Dovre Group shares on Nasdaq Helsinki, approximately on 1 July 2019.