ALTRAN TECHNOLOGIES : Aricent - discovery of an incident with financial implications prior to the change of control
| Press Release |
13 July 2018
Aricent - discovery of an incident with financial implications prior to the change of control
As part of the first closing process since the change of control by Altran (closing as of 30 June 2018), Altran just identified an incident within Aricent, linked to forged purchase orders. This forgery relates to one individual, in his relation to one client, for a total amount of c. $10million, for the period Q3 2017 to Q1 2018.
This incident happened prior to the closing of the acquisition (21 March 2018) and Altran does not expect a material impact on its H1 financial statements. The direct and indirect impacts of this event nonetheless lead Altran to re-assess the profitability profile of Aricent to c.15.6%* on a LTM June 2018 basis (LTM revenues of c. $675m*).
Both the senior management of Aricent and Altran have begun immediate actions to adjust the expense base with the objective of bringing Aricent's profitability profile to pre-communicated targets (LTM sept. 18.3% end of Sept. 2017, pro-forma 18.7%) before year-end.
The strategic rationale supporting the acquisition of Aricent is robust and is not affected by the incident. Altran has launched an in depth investigation into Aricent internal control procedures to ensure this event was isolated, and will eventually strengthen these procedures if necessary.
The company reserves all its rights.
A conference call for investors will be held on Friday 13 July at 8:00 am Paris time (CET)
Telephone numbers: +33172727403 or +442071943759
Confirmation Code: 64382829#
Altran ranks as the undisputed global leader in Engineering and R&D services (ER&D), following its acquisition of Aricent. The company offers clients an unmatched value proposition to address their transformation and innovation needs. Altran works alongside its clients, from initial concept through industrialization, to invent the products and services of tomorrow. For over 30 years, the company has provided expertise in aerospace, automotive, defense, energy, finance, life sciences, railway and telecommunications. The Aricent acquisition extends this leadership to semiconductors, digital experience and design innovation. Combined, Altran and Aricent generated revenues of €2.9 billion in 2017, with some 45,000 employees in more than 30 countries.
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This press release contains inside information as per the definition of article 7 of Regulation n°596/2014.