Banks terminate cooperation agreement with Enento
ENENTO GROUP PLC, INSIDE INFORMATION ON MARCH 24, 2022 AT 12:00 PM EET
Banks terminate cooperation agreement with Enento relative to Swedish housing supporting platform transactional processes for banks and real estate brokers in 2023; the VSthe company will recognize an impairment relating to the transfer; the negotiations on transfer conditions continue
As part of Enento Group Plc’s operations in Sweden, the Company provides a platform to support housing transaction processes for banks and real estate brokers under the Tambur brand, which the Company has developed over the past few years based on an agreement with a consortium of seven banks in Sweden. The platform is part of the company’s digital processes business area in Sweden. The consortium has informed Enento that it is terminating the cooperation agreement in accordance with its terms and will use its right to purchase the related platform consisting of software and source code. The banks will pay 16 million Swedish crowns (about 1.5 million euros) for the acquisition of the platform. Based on the termination notice period, the transfer of the platform is currently expected to occur no earlier than Q2 2023, but negotiations regarding the terms of transition period operations and timing of the transition are ongoing. .
The Company will recognize an impairment relating to development costs of €1.6 million due to the future discontinuation of the service. The impairment will have an impact on adjusted EBIT for the first quarter of 2022 of €1.6 million, of which the effect on adjusted EBITDA will be €0.3 million. Revenue from services offered on the real estate transaction platform represents approximately one-third of revenue from the Digital Processes Business Sector. Enento will continue to provide services based on the housing transaction platform until the final delivery date, but the conditions related to the transition period continue to be under negotiation.
While platform-based services will be discontinued in 2023, the Company’s Digital Processes business area will continue to provide real estate and apartment information services, including property valuation services. housing, and will focus on improving its services, especially for the segment of real estate brokers in Sweden. The digital processes business area aims to invest in growth, particularly in apartment information services, not only for the financial sector, but also for the real estate brokerage segment from 2023.
ENENTO GROUP PLC
For more information:
Director, Digital Processes Business Area
Phone. +358 44 230 9688
Phone. +46 72 141 00 00
Enento Group is a Nordic knowledge company that has been powering society with intelligence since 1905. We collect and transform data into intelligence and knowledge used in interactions between people, businesses and societies. Our digital services, data and information empower businesses and consumers in their daily digital decision-making processes, as well as in financial processes and sales and marketing processes. About 432 people (FTE) work for the Enento group in Finland, Norway, Sweden and Denmark. The Group’s net turnover for 2021 was 163.5 MEUR. Enento Group is listed on Nasdaq Helsinki under the trading code ENENTO.