Transaction date

December 2018

Sector

IT Services

Transaction type

Spin-off and Sale

Countries

Switzerland

SMC Corporate Finance advised itnetX AG and its Administrator in the sale of itnetX (Switzerland AG) to Swisscom.

itnetX is a leading Swiss provider of Microsoft-based IT solutions, particularly in the area of modern Workplace Management and Cloud services for mid- and large-sized corporate clients. The company, led by Markus Erlacher and Dieter Gasser, has approx. 70 employees and has offices in Bern, Zurich and Lausanne. Over the last years, itnetXs’ long-standing project implementation competence has been complemented by expanded Managed Services offerings.

Due to an unsuccessful client project, itnetX AG became financially distressed and spun-off its operating business into its newly founded subsidiary itnetX (Switzerland) AG by contributing various contracts including employment and client agreements as well as fixed assets.

itnetX (Switzerland) AG was thereupon sold within a limited auction encompassing several Swiss and European potential buyers to the winning bidder –  Swisscom AG. Considering the strained financial situation the transaction had to be structured and executed on a tight timeline. Within 2 months from start of the project, the transaction was successfully completed before Christmas 2018, with Swisscom taking over and refinancing itnetX (Switzerland) AG, based on the approval of the Administrator.

Swisscom AG integrated itnetX (Switzerland) AG management-wise within the Infrastructure Solutions unit with the aim to further penetrate the Swiss market for enterprise customer services with its strengthened Microsoft solutions competence.

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