Nixu restructures its operations in the Netherlands support services and estimates write-downs

Nixu Corporation, Press release, December 3, 2019, at 11:35 AM EET

Nixu has grown significantly in the past five years both organically and via acquisitions of companies into Nixu Group. Dutch company ESSC B.V. was acquired into Nixu Group in May 2017 as Nixu Dedicated Support Business Unit. The goal of the acquisition was to build a stronger service support capability for Nixu’s continuous managed services, a strategic growth area. Dedicated Support has provided digital identity support services from two locations: second level support provided from Amsterdam and first level provided from Romania.

While the demand for digital identity support services in connection with Nixu managed services has developed positively, the two-tiered delivery mode in different locations has proven ineffective. Nixu has now decided to restructure Dedicated Support BU to focus solely on the Romanian operations and be structured as an internal Nixu Service Center, which will continue developing and delivering back-office support capabilities for whole Nixu Group.

As part of this restructuring Nixu will relocate personnel from the Dedicated Support Business Unit in Amsterdam to Romania. Nixu will initiate a workforce reduction plan for those employees within Nixu Dedicated Support Business Unit that cannot transfer to Romania. The one-time costs of this restructuring are estimated to be a maximum of 500 000 euros and the costs will be incurred during financial year 2019. The restructuring is estimated to reduce annual operating costs with about 500 000 euros starting from 2020.

CEO Petri Kairinen:

“Restructuring of Dedicated Support Business Unit is part of Nixu’s already earlier communicated focus on streamlining our service offering and gaining associated synergies. The Service Center in Romania will continue to serve its existing clients normally with the third level support of other Nixu digital identity professionals in different Nixu locations. The other Dutch business units providing high-end cybersecurity services will also continue on their growth path.”

Additionally, Nixu has evaluated the potential effect of write-downs for intangible balance sheet items related to earlier acquisitions and client values. At the moment, the estimated need for write-downs is 1.6 M€. The amounts will be finalized as part of the annual closing.

Nixu Corporation
Further information:
Chief Executive Officer Petri Kairinen, Nixu Corporation
telephone +358 40 832 1832, e-mail:
Nixu Corporation

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Nixu in Brief:
Nixu is a cybersecurity services company on a mission to keep the digital society running. Our passion is to help organizations embrace digitalization securely. Partnering with our clients we provide practical solutions for ensuring business continuity, an easy access to digital services and data protection. We aim to provide the best workplace to our team of about 400 cybersecurity professionals with a hands-on attitude. With Nordic roots we serve enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki stock exchange.