WithSecure Corporation, Inside information: Cyber security consulting goodwill impairment of EUR 15.5 million

WithSecure Corporation, Inside information, 22 October 2024, 17:30 EEST

WithSecure Corporation, Inside information: Cyber security consulting goodwill impairment of EUR 15.5 million

As part of the preparation of its third quarter interim report, WithSecure has tested the values of its intangible assets and goodwill. As a result of this testing, an impairment of EUR 15.5 million of the goodwill related to Cyber security 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 2024, WithSecure lowered the revenue outlook of its consulting business, due to financial constraints in some key accounts. At the same time, increased equity market risk has 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 28.7 million.

Contact information:

Laura Viita,
Vice President, Controlling, investor relations and sustainability
WithSecure Corporation
+358 50 487 1044
investor-relations@withsecure.com