WithSecure Corporation, Inside information: Consulting goodwill impairment of EUR 6.2 million

WithSecure Corporation, Stock Exchange Release (Inside information), 17 October 2023, 17:30 EET

WithSecure Corporation, Inside information: Consulting goodwill impairment of EUR 6.2 million

As part of the preparation of its third quarter interim report, WithSecure has tested the values of the intangible assets and goodwill. As a result of this testing, an impairment of EUR 6.2 million of the goodwill related to consulting business will be recognized as part of the third quarter interim report result. The impairment will not have an impact on WithSecure cashflow or Adjusted EBITDA.

Consulting goodwill is resulting from the acquisition of nSense (Denmark) in 2015, Inverse Path (Italy) in 2017, Digital Assurance (UK) in 2017, and MWR Infosecurity (UK) in 2018. In 2023, WithSecure lowered the revenue outlook of its consulting business, due to delayed spending of key customers. At the same time, rising interest rates have increased the average cost of capital applied to estimate the current value of future cash flows related to the consulting business.

Carrying value of the consulting-related goodwill after the transaction is EUR 49.1 million.

Contact information:

Laura Viita

VP, Controlling, investor relations and sustainability

WithSecure Corporation

+358 50 487 1044