Press

28.02.2014
CANCOM SE: acquisition of HPM Networks in Silicon Valley opens up opportunities for growth in cloud computing business

Munich, Germany, February 28, 2014

CANCOM SE, listed in the German TecDAX technology index, has acquired all
of the shares of HPM Networks by purchase agreement dated February 27, 2014
(pacific standard time, PST). Based in Pleasanton, California, HPM operates
as a value-added reseller (VAR) in the cloud infrastructure environment and
has long-standing relationships with business partners and customers. HPM
Networks is the largest HP Enterprise Group Partner for the West Coast and
the third-largest VMware Partner in the Western United States. It also has
strategic partnerships with Cisco, Microsoft, EMC and Palo Alto Networks,
among others.

The company has 48 employees, mainly highly-skilled, and has connections
with big-name enterprise customers such as Twitter, Workday, GAP,
Williams-Sonoma and Juniper Networks. In 2013, HPM Networks generated sales
revenues of USD 55 million (approx. EUR 40 million). Part of this consisted
of agency fees paid for direct supplies to customers as part of HP's agent
program. The external revenues in 2013 including the USD 82 million under
the agent program with HP totaled USD 133 million (approx. EUR 98 million).
The EBITDA, adjusted for one-off effects, in 2013 was USD 4.5 million
(approx. EUR 3.3 million). The purchase price consists of a one-off payment
equal to twice the adjusted EBITDA for 2013, in addition to an earn-out
component to retain key management personnel in the business for the next
few years.

HPM Networks was one of the first companies to be certified as a HP Cloud
Center of Excellence partner. CANCOM plans to position its own Business
Cloud portfolio with customers of HPM Networks as well as with potential
new customers. HPM Networks offers a good platform for this, because it has
access to the market as well as to partners and customers. For HPM
Networks, being part of the CANCOM group will mean additional potential for
growth, as it presents an opportunity to win larger projects.

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Contact

Sebastian Bucher
Manager Investor Relations