Netcompany Group has reached an agreement with a majority part of SDC’s shareholders to merge in an all-cash deal worth DKK1bn ($139m).

Both firms, which are based in Denmark, are engaged in offering IT solutions to the financial services sector.

Under the terms of the agreement, the merged entity will operate as Netcompany.

The consideration for the deal will be funded through existing credit facilities.

Through the acquisition, Netcompany aims to strengthen its position in the financial services sector, which is said to be the highest-spending vertical within IT services in Europe.

The total addressable market in Denmark, Norway, and Sweden is projected to exceed DKK44bn ($6.1bn) in 2025, with an expected annual growth rate of over 10% until 2028.

Established in 1963, SDC is a key IT service provider for the Nordic financial sector, offering core banking systems, digital banking solutions, and regulatory compliance tools.

SDC chair Klaus Skjødt said: “Together with Netcompany, we have a shared ambition to make the banking sector a driving force for digital innovation, setting new standards for the advice and service customers can expect from their bank.

“We will achieve the scale and development power necessary to enhance our competitiveness and create the market’s strongest banking experience.”

The combined entity intends to develop advanced banking solutions, benefiting both existing banks operating on SDC’s platform and new institutions joining in the future.

Netcompany’s portfolio, which includes AMPLIO, AMI, mit.dk, and EASLEY, along with products from Festina Finance, will be integrated with SDC’s core banking platform to enhance banking services.

The merger is expected to improve digital banking experiences, streamline onboarding processes, and provide personalised advisory and self-service solutions.

Following the transaction, the combined workforce will exceed 9,200 employees.

Netcompany CEO André Rogaczewski said: “This strategic move marks a significant milestone for Netcompany, and it aligns with our Go-To-Market strategy to expand our capabilities and enhance our service offerings within the financial services industry.

“Digitalisation is the key driver for strengthening Europe’s most critical societal areas – including the financial services industry.”

Subject to regulatory approvals and customary conditions, the transaction is expected to be completed by mid-2025.