March 11, 2022
Akka Technologies, a Brussels-based engineering and consulting company acquired by The Adecco Group last year, announced yesterday that it recorded revenue of 412.0 million euros in the fourth quarter of 2021, up by 10.0% compared to the fourth quarter of 2020, or 7.7% on an organic basis.
The group indicated that the recovery recorded since the beginning of the year continued and accelerated in the last quarter, in particular in the most diversified and digital business units.
Akka’s mobility sectors have confirmed their continued rebound, and the group’s Aerospace sector is showing clear signs of recovery. Akka’s diversification sectors continue to expand and most of them recorded double-digit growth in the last quarter of the year compared to the same quarter in 2020.
The Adecco Group first announced on July 28, 2021 that it was acquiring Akka Technologies, for an enterprise value of €2.0 billion, which would be the largest transaction in Akka’s 25-year history. Adecco.
The first phase of the transaction was closed on February 23 and The Adecco group now holds 64.72% of Akka shares.
Turnover broken down by geographical area
| (in millions of euros) | Q4 2021 | Q4 2020 | Change | Organic change |
| France | 139.9 | 115.7 | 20.9% | 20.8% |
| Germany | 87.5 | 83.3 | 5.0% | 5.0% |
| North America | 60.1 | 65.9 | -8.8% | -12.4% |
| International | 67.0 | 61.5 | 8.9% | 7.9% |
| Data Responses | 57.6 | 48.0 | 19.9% | 8.9% |
| Total | 412.0 | 374.4 | 10.0% | 7.7% |
Growth in France was driven by good inter-sector dynamics, but above all benefited from the significant recovery in Aeronautics, which posted an increase in revenue of around 80% compared to Q4 2020.
The German business unit’s turnover increased to 87.5 million euros, showing the first signs of improvement in activity despite a month of December marked by a high rate of illness due to the coronavirus pandemic. Covid-19.
In North America, the group posted a decline. The decrease results from the strategy of repositioning the activities towards higher margin activities.
The International business unit benefited from its diversification, with commercial momentum remaining strong in most countries and sectors, in line with previous quarters.
Data Respons revenue increased to €57.6 million. The Computer Solutions business recovered in the fourth quarter, posting growth, while the R&D business continued its double-digit growth. Data Respons was acquired by AKKA in 2020 and is a pure digital leader with deep expertise in software development, R&D services, advanced embedded systems and IoT solutions.
The company also recorded full-year revenue of €1.55 billion, an increase of 3.3% on a reported basis and 0.7% on an organic basis.
Annual results
| (in millions of euros) | FISCAL YEAR 2021 | FISCAL YEAR 2020 | Change | Organic change |
| Income | 1,553.4 | 1,503.5 | 3.3% | 0.7% |
| Operating profit | 17.5 | -170.5 | – | – |
| Group net income | -11.4 | -168.8 | – | – |
The company said the business environment has continuously improved over the year, leading to a strong recovery in profitability.
The Adecco Group Transaction
The group said Adecco Group intends to merge Akka and Modis. Thanks to this step, the new activity will generate approximately 4 billion euros in revenue.
The Adecco Group now holds 64.72% of the shares issued by Akka Technologies. Consequently, the group will launch a mandatory tender offer in Belgium and France for the remaining Akka Technologies shares, at the same cash price of €49 per share, and €100,000 plus accrued interest per convertible bond. The mandatory tender offer will be unconditional.
After the closing of the mandatory tender offer, the Adecco Group intends to carry out a simplified squeeze-out (mandatory sale) if the conditions of such a squeeze-out tender offer are met, with a view to acquiring all of the shares of Akka Technologies as well as the delisting of its shares from Euronext Brussels and Euronext Paris. The group expects this process to be completed by the end of the first half of 2022.
Adecco Group also, through its subsidiary Modis, entered into an intercompany loan agreement with Akka immediately after the closing to provide it with sufficient liquidity and allow the company to cancel and prepay part of its existing debt.
Outlook
Given the current business momentum, and excluding any major deterioration in the current geopolitical environment, particularly in Europe, Akka currently expects full-year 2022 revenue to grow mid to high single digits.
All business units should contribute to the growth of the group and achieve an operating margin rate (adjusted) close to the 2019 margin rate. group business.
The company has a market capitalization of 1.52 billion euros.
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