Sopra Steria's share price rose by nearly 1% at the end of the day after announcing a conditional agreement to launch a takeover bid for all Ordina shares at a price of 5.75 euros per share (excluding the proposed dividend), representing a premium of 36% over the closing price on March 14.
Following this announcement, Invest Securities reiterates its 'buy' recommendation and its price target of 228 euros for Sopra Steria.
Although it recognizes that the timing of the operation 'is not ideal', the research department believes that 'the opportunity could not be turned down' and that the purchase of Ordina, 'whose DNA is very similar to that of Sopra', is fully in line with the strategy led by the new CEO.
Sopra is building up a strong position in the Benelux countries and increasing its exposure to the public sector, without compromising its growth and profitability, and with a significant accretive impact", emphasizes the analyst.
Oddo BHF also reiterates its 'outperform' opinion and its price target of 236 euros on Sopra Steria, judging the agreement with Ordina's board of directors for a cash offer of 526 million euros to be positive.
While acknowledging that 'some may consider the acquisition multiple too high compared to Sopra Steria's current multiple', the research department believes that the price paid 'seems reasonable after synergies and in view of the strategic interest of the target'.
With such an operation, Sopra Steria will become a major player in the Benelux region, which should enable it to implement the same strategy as in France and gradually achieve margins of over 10% in the region', the analyst underlines.
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Sopra Steria Group is one of the leading French companies providing IT services. The activity is organized mainly around three areas:
- consulting services: strategic consulting, implementing of restructuring projects and development towards new technologies, etc.;
- systems integration and solutions: design and implementation of Internet technology solutions (portals, merchant sites, Intranet and Extranet networks, etc.), integration of ERP solutions, implementation of application solutions (customer relationship management, HR management, etc.). The group also offers subcontracting solutions for providing technical support to users and application maintenance;
- outsourcing services and operation of professional processes: supervision, administration and operation of IT infrastructures, operation of finance, administration, human resources functions, etc.
Net sales break down by market between industry (29.6%), services (24.6%), public sector (19.4%), finance (16%), telecommunications and media (7.2%) and retail (3.1%).
53.5% of net sales are generated abroad.
SOPRA STERIA GROUP 
