Finnish postal group Itella has sold a Danish IT subsidiary, Itella Information A/S, to KMD, thelargest Danish-based IT company which aims to further expand its position in the printing
market.The sale is part of Itella’s strategy to develop its different business units and internationalpresence, especially in view of its declining mail volumes due to decreasing demand in traditionalpostal services and increasing digitalisation.
“As part of our pan-European set-up, it is important to us that we still have a high qualitysupplier in Denmark who can carry out tasks for the pan-Scandinavian customers we have in thegroup. By having KMD as a partner in Denmark, our cross border offer is becoming stronger and westrengthen us as a value provider. Therefore we are delighted to enter into cooperation with KMD,one of the leading suppliers in the area,” said Heikki Länsisyrjä, Senior Vice President of ItellaGroup.
Itella Information in Denmark has an annual turnover of around DKK 40 million (€5.38 million).It provides services such as e-invoicing, EDI, workflow systems, scanning, printing and physicaland electronic archiving employing approximately 30 employees in Denmark, all of whom will betransferred to KMD. The current production in Hvidovre will be moved to KMD’s facilities inBallerup, which is among the largest and most modern printing centers in Denmark.
Itella Information as a whole operates in 11 European countries with a staff of about 2,300professionals. Net sales in 2010 amounted to €260 million.
For the last few years, KMD has been one of Danish leading providers of print services and hasgrown steadily in printing and enveloping. The acquisition adds more products and capabilities, anda number of new clients including several from the private market.
“We see a good strategic fit between the two business units, and since we still have ambitionsto grow in the printing market, the acquisition of Itella Information is a natural move for KMD,”explained Lars Monrad-Gylling, KMD CEO.
For almost 40 years, KMD has worked with development, operation and maintenance of the largestmunicipal IT systems. It develops and delivers software and service solutions for the municipal,government and private market in Denmark. KMD has an annual turnover of around DKK 4 billion (€538million) and more than 3,000 employees.
