Security solutions company Confidence grows in the UK

Stockholm, 22 December, 2006 – The Swedish listed company Confidence International AB is expanding its business in the UK through the acquisition of the British system integrator Vidionics. Vidionics complements Confidence primarily with its customer base and highly effective sales, installation and service organisations. For Confidence this acquisition confirms the start of a vigorous expansion phase in the UK security solutions market.

UK is one of the world’s most receptive countries regarding security solutions and increasing of Confidence’s presence on the British market is highly prioritised by the company. The acquisition of Vidionics is a key move.

The deal strengthens our position on the British security solutions market and brings with it promising business opportunities, says Anders Kullberg, acting Managing Director of Confidence International. Vidionics has a customer base that is important for us and they also provide us with a sales and installation organisation of highly skilled technicians and engineers that makes us stronger. Both companies have extremely competent personnel in IP based security solutions and complement each other perfectly.

Vidionics is a system integrator that adds value to its customers businesses by combining IP technology with traditional security technology. Vidionics’ has long term relations with its customers. For Confidence this means new opportunities to reach out with its broad range of products; e.g. fire and evacuation alarms, server management and integrated security systems. Confidence also gets direct access to the British market for its cutting edge products in the Event/Arena and Sports segments. The Hotel and Shipping businesses are also new markets with great potential for Confidence in the UK.

[an error occurred while processing this directive] Both parties benefit from the acquisition since Vidionics also gets access to several high quality products within IP based security technology, says Kevin and Terrance Fagan, the founders of Vidionics. It strengthens our offerings to our existing customers and also gives us access to for us completely new market segments. For Vidionics, the acquisition is also important to ensure capital and resources to advance to the next division in the British security market.

Confidence acquires 100 per cent of the shares in Vidionics through the raising of a loan. The seller has given the customary guarantees and is depositing a portion of the proceeds of the sale as security. The earlier owners remain in the company’s board and via a consultancy agreement, at the disposal of company management.

Vidionics currently has 30 employees mainly working in the sales, installation and service and maintenance departments. The turnover for 2006 is estimated to approximately GBP 2M with a profit margin of 10 per cent. Together with Confidence’s existing operations in Great Britain a turnover of approximately GBP 4 is forecasted for 2007.

Through the acquisition we strengthen our coverage of the British market, says Anders Kullberg. Confidence now has over 140 employees working in its operations in Sweden, UK and Ireland. Our goal is to grow in our prioritised geographical areas, parallel with continued vigorous organic growth in the existing units.

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