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Acquisitions

INVESTMENTS IN CUSTOMERS, EMPLOYEES, EXPERTISE AND GROWTH

We provide our customers with as much support as possible on their journey to becoming smart and intelligent companies, and strengthen their ability to compete. In addition to healthy organic growth, we also successfully strengthen our Group with strategic acquisitions and the integration of the same.

Acquisitions

We completed the following transactions in recent years.

Founded in 2001, CDE is an acknowledged engineering specialist in the fields of embedded systems, app & web and analytics. The business model centres around customer-specific firmware and electronic developments integrating sensor and connectivity solutions for the medical technology, industrial, mobility and energy sectors. CDE provides an extensive range of services from sensors to data analysis to well-known clients. With its team of more than 20 highly specialised engineers and developers, CDE generated annual revenues of nearly 1.8 million euros last year. The purpose of this acquisition (share deal, acquisition of 100% of the shares) is to further strengthen our industrial IoT expertise.

Established in 2001, the company today is a recognised talent management and cloud specialist in Germany, Austria and Switzerland (the so-called DACH region). The business model focuses on implementation projects for upper midmarket and large accounts, »ready-to-use« solution packages covering pre-configured modules of SAP SuccessFactors with comprehensive support on a fixed-price basis. With its team of 35 certified employees, TalentChamp generated annual revenues of around 4 million euros last year. Its base of more than 100 customers is made up predominantly of midmarket and large accounts – from all sectors of industry. Together with our subsidiary KWP INSIDE HR and strengthened by our strategic acquisition of TalentChamp (share deal, acquisition of 100% of the shares), we plan to further expand our market leadership in the German-speaking SAP cloud HR market and to offer our customers comprehensive support in exploiting the digital value creation potential in HR to the full.

In May 2017, we set up ALLFOYE Managementberatung GmbH, Düsseldorf, as a wholly-owned subsidiary of All for One Steeb AG, firstly to go beyond IT services and make our customers' strategies, business processes, organisation and corporate culture fit for the future as the digital transformation progresses, and secondly to offer more extensive consulting services to top management. The operational organisation of the business was formed by carving a team of management consultants out of the Group and bringing them into the company.

All for One Steeb bolstered its KWP subsidiary by acquiring all the shares of inside Unternehmensberatung GmbH, Oldenburg, effective 1 April 2017. Like KWP, inside, which was founded in 1989, specialises in end-to-end SAP human capital management services and has completed more than 400 customer projects to date. The firm employs 40 people, operates primarily in Germany and generates sales of some EUR 8 million. About one third of this figure is already attributable to a significantly growing amount of recurring cloud-based revenues, which ensures a high degree of customer loyalty, a stable cash flow and robust profitability.

All for One Steeb acquired a 70% majority interest in the cloud specialist B4B Solutions GmbH of Graz (Austria) effective 1 November 2016. B4B is an acknowledged expert for rapid and high quality developments and implementations of cloud applications, and has been SAP Cloud Partner of the Year several times. Established in 2012, B4B employs a total of 20 people in Austria and Germany, is growing much faster than the market and recently achieved revenues of about EUR 2 million. Recurring revenues from cloud software subscriptions and support account for nearly half of the company’s sales. Our shared objective for this strategic acquisition is to bundle the enormous wealth of cloud experience of All for One Steeb and B4B Solutions for the benefit of our customers and, in doing so, to become both pacesetter and best partner for SAP ERP and CRM cloud solutions in the German-speaking region.

On 1 October 2016, All for One Steeb AG increased its equity interest in OSC AG, Lübeck, from 60% to 100%. In order to significantly expand its local presence in northern Germany and to intensify its customer support, All for One Steeb AG had initially taken over 60% of the shares in the company in November 2012. OSC is strongest-selling SAP Consulting Partner.

On 1 May 2014, All for One Steeb AG closed the share purchase agreement as scheduled to acquire all the shareholdings in avantum consult AG, Duesseldorf. Operating primarily in Germany and Switzerland, avantum consult AG is one of the most respected technology-independent consultancies in the market for performance management and business analytics. Its range of services extends from designing the operational concept and strategy all the way to implementing management systems to improve business performance. The company currently employs about 70 people and generated total revenues of approximately EUR 10 million in the financial year 2013[WJJ1] . As the Number 1 in the German-speaking SAP midmarket segment, All for One Steeb wants to use this transaction to also take a top spot in the growing overall market for business analytics and performance management.

On 20 December 2013, All for One Steeb AG increased its equity interest in its subsidiary KWP Kümmel, Wiedmann + Partner Unternehmensberatung GmbH, Heilbronn, (KWP), from 56% to 100%. In addition to paying a consideration in cash, the capital was increased against consideration in kind from the authorised capital and 122,000 new shares were issued. Following a robust growth phase in recent years, KWP is recognised as a market leader for SAP ERP Human Capital Management. With the closer integration of our largest subsidiary, we aim to reinforce our Number 1 position in German-speaking countries.

In addition to SAP ERP, enterprises are increasingly considering their messaging software as being mission critical. Microsoft collaboration solutions are the market leaders. Extensive portal landscapes are being used to scale these services toward many thousands of users. Here is precisely where the technology specialist WEBMAXX has such exceptional expertise. As part of measures by Munich-based WEBMAXX GmbH to raise capital, All for One Steeb AG took over 73.68% of the shares on 1 July 2013, thus acquiring the majority stake in this Microsoft cloud technology company. All for One Steeb AG plans to use this strategic acquisition to drive the expansion of its Microsoft Collaboration Services.

A service office in Istanbul/Turkey – All for One Steeb Yazılım Servisleri Limited Sirketi (»All for One Steeb Software Services Ltd.«) – was established on 11 July 2013 as a wholly-owned subsidiary of All for One Steeb AG to expand our remote support for All for One Steeb's SAP midmarket accounts in German-speaking countries. This step aims to take advantage of the labour market for well-trained, German-speaking SAP experts in Istanbul.

Effective 1 May 2013, All for One Steeb AG acquired 49 employees, more than 80 customer accounts and further assets from ORGA Gesellschaft für automatische Datenverarbeitung mbH and ORGA Consulting GmbH – both subsidiaries of Fiducia IT AG, Karlsruhe, and both based in Karlsruhe (»asset deal«). The SAP application landscapes for Orga's SME customers, which are currently being run in Fiducia's data centres, will be gradually shifted to the All for One Steeb data centres. The purpose of the acquisition is to expand the share of recurring revenues and to leverage additional growth potential.

Established in 1993, the OSC Group (»Open Systems Consulting«) is one of the strongest mid-size SAP consulting companies when it comes to sales. OSC employs some 80 people and most recently generated total annual revenues of approximately EUR 8 million. The OSC Group is not only an SAP Special Expertise Partner for Supply Chain Execution and SAP Professional Services, but also operates successfully in the fields of SAP Human Capital Management, SAP Business Analytics and SAP Business One. Effective 1 November 2012, All for One Steeb AG acquired 60% of the shares in OSC AG, Lübeck. The aim of this strategic acquisition is to greatly expand our local presence in northern Germany.

On 10 November 2011, All for One executed on schedule the share purchase agreement signed with SAP. Under this agreement, All for One Midmarket AG acquired 100% of the shares in Steeb Anwendungssysteme GmbH, Abstatt, from SAP AG, Walldorf. Share ownership was transferred with effect from 1 December 2011. The industry logic behind the acquisition is clear: two strong and profitable companies with similar organisational structures join forces to become the strongest SAP full-service provider in the German-speaking SAP midmarket.

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