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Six Sigma

DNV and Intertek Discuss Merger

In the United States, DNV gives up management system certification in place of co-branding with Intertek

Published: Tuesday, December 8, 2009 - 07:00

In late November management system registrars DNV and Intertek announced that they were in discussions regarding a potential to unite their business assurance activities. According to sources at DNV, Intertek will be purchasing DNV’s business unit DNV Business Assurance. This unit, which works mainly with management system certification, consists of some 1,700 employees. At the same time DNV is investing in Intertek shares and will have a seat on the Intertek board. Expected 2009 revenue for DNV Business Assurance is expected to be approximately $329 million.

DNV’s Business Assurance unit is a leading global provider of system certification, while Intertek is leading in product certification, testing, and inspection. According to a DNV press release, the merger discussions are based “on the fact that global and local businesses increasingly look to quality assurance and certification services providers who can offer a full range of relevant services.”

“DNV is exploring opportunities to further develop DNV’s business assurance services that could create value for customers, new opportunities for employees, and give DNV a substantial interest in a high-growth business,” says Henrik O. Madsen, president and CEO of DNV. “Our discussion with Intertek includes the potential to become among the largest shareholders in Intertek. This will enable us to follow our commitment to the success of our Business Assurance unit. Intertek has been carefully selected as a company that is committed to a level of quality and integrity that reflects our own, and we intend to co-brand our certification services.”

As part of the agreement, DNV will no longer offer management system certification services in the United States, and Intertek will increase it’s offering of management system certification in the United States, according to Eva Halvorsen, DNV’s corporate communications manager, adding that the change should be transparent for existing DNV customers. “At this stage there will be no change for DNV’s customers—it will be business as usual,” Halvorsen explains. “This also goes for ISO 9001-registered companies. After the merger has taken place, the management system certification services will be offered through a co-branding strategy.”

“Intertek has a strong position in inspection, testing, and product certification. We believe that the combined activities will represent a compelling offering to local and multinational companies,” says Madsen. “Large companies seek a business assurance provider that can offer the services that they need on a global basis with a strong reputation for service and integrity in their people. Intertek and DNV deliver that on both fronts.”

Subject to legal, regulatory, and competition approval, the 1,700 DNV employees (out of a total of 9,000 DNV employees) will be transferred to Intertek after the closing, which is expected during spring 2010.

Independent of a transaction with Intertek, DNV will continue to develop its position as one of the leading ship classification societies, as a provider of risk management services to the energy industry, and as a provider of climate change services, through a staff of 7,300 employees.


About The Author

Dirk Dusharme @ Quality Digest’s picture

Dirk Dusharme @ Quality Digest

Dirk Dusharme is Quality Digest’s editor in chief.