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Norwegian IT firms set for major merger

Norway's EDE and ErgoGroup are to merge to form Norway's second-biggest IT services provider

08 June 2010

Two of Norway's biggest technology firms have entered final negotiations over a proposed merger.

With a deal set to be finalised by the end of the year, EDB Business Partner ASA and ErgoGroup AS have confirmed that they intend to come together to form what will be the second-largest IT services provider in the country, after IBM Corp.

While the details of the move are still being subjected to ongoing negotiations, EDB's chief financial officer Kristian Kuvaas Johansen has revealed that a need to move with the global markets is the driving reason behind the upcoming merger.

Speaking to Dow Jones, he said: "The management of EDB and ErgoGroup see that joining forces is a strategic and appropriate move in order to respond proactively to the changing competitive landscape, and at the same time to create a strong Nordic-based IT provider which will be sustainable over time."

Once the negotiations have been finalised and a deal completed, the new-look company will boast a workforce of around 10,000 employees, with a presence in 16 countries worldwide.

This comes just days after BskyB announced that it has reached a deal to acquire Virgin Media Television (VMTV).

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