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Swiss cloud technology company SoftwareOne Holding AG confirmed Friday that it is in advanced negotiations to acquire Norwegian IT consultancy Crayon Group Holding ASA. The potential deal would establish a dominant European player in the software licensing and cloud solutions market.

Details of the Proposed Deal

SoftwareOne plans to finance the acquisition using a combination of cash and shares, although the companies have not disclosed a transaction value. Crayon's market capitalization is approximately 12 billion Norwegian kroner ($1.1 billion).

The companies cautioned that discussions are ongoing and that an offer to Crayon shareholders is not guaranteed.

SoftwareOne, headquartered in Stans, Switzerland, specializes in IT advisory services and collaborates with providers such as Amazon Web Services and Adobe Inc. Meanwhile, Oslo-based Crayon focuses on licensing software and cloud solutions from industry leaders, including Microsoft and Oracle.

Stock Market Reaction

The news triggered a mixed reaction in the stock markets. SoftwareOne’s shares rose by 11.5% on the SIX Swiss Exchange, reflecting investor optimism about the proposed acquisition. In contrast, Crayon’s shares on the Oslo Bors fell by approximately 3%, closing at 137.30 kroner on Thursday.

Previous Industry Activity

The potential merger follows a period of heightened acquisition interest in the European tech sector. Notably, private equity firm Bain Capital made multiple attempts in 2023 to acquire SoftwareOne, culminating in a $3.5 billion offer in January that the company declined.

If successful, the merger would combine SoftwareOne’s expertise in IT advisory with Crayon’s specialization in software and cloud licensing, potentially creating a powerhouse capable of competing with global IT consulting firms.

Conclusion

While the potential merger between SoftwareOne and Crayon Group signals a bold move to consolidate market leadership in Europe, uncertainty remains as talks continue. Investors and industry stakeholders will be watching closely for further developments.