Berlin, 21 November 2018 – PSI Software AG is in the advanced stages of the review process for the takeover of the network software control business around the core product PRINS from the BTC Business Technology Consulting AG, a subsidiary of the EWE energy group. The takeover would be executed through an asset deal. With just about 10 million euros, the PRINS network control business has annual sales equivalent to about 5 percent of PSI Group sales.
PSI intends to continue the circa 100 customer contracts with a maintenance volume of 3 million euros as is. The PRINS business will concentrate as a market division on de minimis municipal utilities (integrated utility with up to 100,000 customers), infrastructure operators and industry. In the medium term, PSI will generate economically interesting migration offers to the PSI products for every PRINS customer. The circa 150 network control specialists from BTC will be taken over by PSI and trained and employed for the PSI products. The PSI energy business, with its energy transition software products, has been extremely successful with over 100 million euro in new orders (as of 31 October 2018).
As a result of scale disadvantages, the PRINS network control business has been suffering under growth, profit and capacity difficulties of late. Although a large portion of the synergies can be addressed in the first few months after the takeover, there is the potential risk of a temporary and slight burden on the margin in the first quarters of 2019 for PSI. PSI will offset these with measures in other businesses. With the merger, the PSI network control software team will grow to over 800 highly qualified employees. Due to the considerable scale effect on the core product PSIcontrol, growth, margins, development budgets and attractiveness of PSI products are expected to increase significantly in the following years.
Other areas of BTC are not impacted and continue to generate successful business. BTC and PSI wish to realize a good solution for customers and employees. Following a successful transaction, both parties aim to establish a partnership. BTC will, in the future, offer infrastructure and application management for PSI network software products.
Based on its own software products, the PSI Group develops and integrates complete solutions for optimizing the flow of energy and materials for utilities (energy networks, energy trading, public transport) and industry (mining, metals production, automotive, mechanical engineering, logistics). PSI was founded in 1969 and employs more than 1,750 people worldwide.