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Sweden TDS broadens its HR services portfolio through acquisition of dsoftware

April 19, 2007
  • HR software now available for in-house use by customers
  • Products enhanced to include new functionality
  • Fujitsu Services strengthens position on German HR BPO market

Neckarsulm, Germany, April 19, 2007 - TDS Informationstechnologie AG (ISIN DE0005085609) is to expand its HR Services & Solutions division through the acquisition of dsoftware GmbH, headquartered in Neuss. dsoftware is a leading vendor of HR software for the health industry, the public sector, and non-profit organizations. The company’s flagship product is ds2000, a comprehensive solution for HR and time management. The software is suitable for both local, in-house operation, and for remote hosting. The acquisition will enable TDS, a Fujitsu Services subsidiary, to address new target groups. By mutual agreement, the purchase price is to remain confidential; the transaction still requires approval by German anti-trust authorities.

The move will strengthen TDS’ position in the HR services market. In the future, the IT and HR specialist will manage payroll for more than 650,000 employees and retirees using an Application Service Providing (ASP) model, reinforcing its position in the market for mid-size companies. In total, products from TDS and dsoftware will be the basis for processing a total of 1.5 million salary and pension transactions monthly.

As Michael Eberhardt, TDS CEO explains, “For TDS and our new majority shareholder, Fujitsu Services, this investment is an important step with regard to expanding our business process outsourcing (BPO) offering in the HR space, and underlines our commitment to the German market. The acquisition is a logical continuation of our strategy of positioning TDS in the growing market for HR services.”

As Robert Battenstein, head of HR Services & Solutions at TDS emphasizes, “dsoftware is ideal for our HR Services & Solutions division. The acquisition extends our market position, and significantly expands our solution portfolio, enabling us to respond more flexibly to the requirements of the market and our customers.”

TDS and dsoftware products will be marketed in parallel. As a result, customers will in future have greater choice when it comes to choosing a suitable solution for their specific needs. god software from TDS will form the basis of ASP and BPO offerings; ds2000 will be employed for in-house operation by customers. A further advantage is that individual features of the two systems can be combined. For example, the TDS product can be enhanced to include time management and staff deployment planning.

About dsoftware GmbH

dsoftware has been developing and marketing software for HR and time management since 1987, and also offers training courses and consulting services throughout Germany. The company has a long and successful track record, focusing in particular on the health industry, the public sector, and non-profit organizations. dsoftware is a proven expert in the implementation of customer-specific solutions for HR and time management, including staff deployment planning. In fiscal 2006, the company employed approximately 100 people, and posted revenues of €7.6 million.

About TDS AG

TDS offers IT outsourcing, IT consulting and HR services to mid-sized enterprises and major corporations. The company, founded in 1975, operates predominantly in the German, Austrian and Swiss markets. TDS offers highly tailored solutions in all areas of IT outsourcing – from selected applications to entire IT infrastructures, and with an emphasis on the SAP space. The IT consulting segment provides advice on SAP and Enterprise Content Management (ECM) systems. As a long-standing SAP expert, TDS has in-depth knowledge of the SAP portfolio. The HR services and solutions segment enables companies to outsource individual HR tasks or entire HR processes. TDS handles over 750,000 payroll transactions every month, making it Germany's market leader. Furthermore, companies deploying TDS Personal HR software handle a million payroll transactions. TDS also develops and markets software solutions for financial accounting and not-for-profit organizations, in particular charities, church institutions and local-government agencies. Currently, TDS employs more than 1,000 staff, and in 2007 posted revenues of approximately 106 million euros. In early 2007, TDS was acquired by Fujitsu, one of the world’s four largest providers of IT services. Fujitsu’s portfolio includes software and hardware solutions, as well as diverse services for a wide range of industries and applications. Fujitsu posted revenues of approx. 33 billion euros in fiscal 2007/08, and has a workforce of over 160,000 staff in 70 countries.

Heiko Hambrock

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Fax: 07132.366-11889
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Företag:TDS AG
Titel:Leiter Unternehmenskommunikation

Date: 19 April, 2007