First cross-border M&A for Bittnet: The Group announces intention to acquire 35% stake in Czech IT&C integrator Servodata
Bucharest, 1 March 2021 – Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, announces its first cross-border transaction – acquisition of 35% of shares in a Czech-based IT&C integrator Servodata a.s., member of Moore Czech Republic group.
“We are thrilled to deliver the promise made to our shareholders last year to expand the activity of Bittnet Group across the CEE region. Today’s announcement to acquire a 35% stake in Servodata Group – an IT company with 30 years history and presence in two important markets – Czech Republic and Slovakia, marks a new stage in our development. Together with Moore Czech Republic, we share the same vision about the potential in the region and we plan to accelerate the growth of Servodata. We will be working together to build a regionally-relevant IT group, able to respond to the accelerated demand for the IT services across the CEE region,“ said Mihai Logofatu, co-founder at Bittnet Group.
The value of the transaction is 1.4 million euro. The sum will be paid to Moore Czech Republic in BNET shares that will be issued in a new capital increase operation. Moreover, Bittnet Group will invest additional 2 million euro in debt financing in the development of common products and geographical expansion over the next three years. Following the transaction, Bittnet Group will own 35% of Servodata and Moore Czech Republic will hold 65% of the shares.
“Our group welcomes a new partner in its structure. We consider the Bittnet Group to be a strong IT&C player with a strong vision for European expansion, and that is close to us. We believe that joining the forces of our two entities will accelerate planned activities in areas such as cybersecurity, robotic data processing and AI connectivity, while expanding our geographic presence,” said Petr Kymlička, co-owner at Moore Czech Republic.
Servodata a.s. is a joint-stock company having its seat in Prague, Czech Republic. The company has three subsidiaries. Servodata Group has been operating in Czechia for over three decades and is one of the leading companies providing business IT solutions. Servodata has also been active in the Slovakian market since 1994.
The key area of focus of Servodata includes design, implementation and support of technological infrastructure, IT consulting and support services, including comprehensive outsourcing of IT services. In the field of development, Servodata focuses primarily on solving business processes and portal solutions. More recently, the company has made significant investments in the area of cybersecurity, which helped strengthen its position in Slovakia. The company has 70 designers, architects, developers, and consultants. In 2020, Servodata recorded revenues of approximately 10 million euros, an increase of 12% compared to 2019, and a net profit of 0.4 million euro, a surge of 60% compared to the previous year.
As a result of the transaction, Bittnet and Moore Czech Republic aim for year-on-year growth in turnover of at least 20%. Consequently, for 2021, Servodata Group is expected to deliver a 12 million euro turnover and 1.5 million euro in net profit.
The transaction is subject to the successful completion of the due diligence process, as well as a positive vote in the Bittnet Group’s General Meeting of Shareholders scheduled to take place on April 27th, 2021. In case of successful completion of the investment, the Board of Directors of Servodata will consist of 5 members, with 2 seats belonging to Bittnet Group.
Servodata Group is part of the consulting, audit and technology group Moore Czech Republic, owned by Petr Kymlička and Radovan Hauk. The group includes consulting and auditing, as well as accounting, tax, legal, training and educational, technological and ICT services. In 2020, Moore Czech Republic reported a consolidated turnover of approximately 20 million euro. Moore Czech Republic is part of Moore Global, one of the largest international audit and consulting firms.
About Bittnet Group
Bittnet was founded in 2007 in Bucharest, by brothers Mihai and Cristian Logofătu, as a company offering IT training and IT solutions in Romania and abroad. Today, Bittnet is a Group of companies in the IT field of which the following brands are part: Bittnet Training, Dendrio, ELIAN Solutions, Equatorial Gaming, the eLearning Company and Softbinator. Bittnet Training is the leader of the IT training market in Romania, with over 15 years of experience and the largest team of IT trainers in Romania. Equatorial is a game-based learning company specialized n providing transformative training and consulting programs at the individual, team and organizational levels in Romania and abroad. Dendrio is the only multi-cloud integrator in Romania, consolidating its position as a company certified by the most important IT providers globally, focusing on cloud security and cybersecurity. Elian Solutions specializes in providing Microsoft Dynamics NAV Enterprise Resource Planning (ERP) implementation services. Bittnet Group is listed on the Main Market of the Bucharest Stock Exchange under the BNET symbol.