Romanian IT group Bittnet expands abroad with acquisition in Czechia
Romanian IT&C group Bittnet Systems (BNET) will turn into a regional player after it reached an agreement to buy a 35% stake in Czech company Servodata.
Bittnet will issue new shares worth EUR 1.4 mln for the stake that it will buy from Moore Czech Republic.
The deal must be approved by the two companies’ shareholders.
“This valuation offers a multiple EV/EBITDA of 6.4x, which makes the payment with BNET shares advantageous for all parties involved, including existing Bittnet shareholders,” Bittnet said in a note to investors.
In 2020, Servodata achieved total revenues of EUR 10 million and EBITDA of EUR 1 million.
For 2021, the company has a budgeted turnover of EUR 12 million, EBITDA of EUR 2.5 million, and a profit of EUR 1.5 million.
Prague-based Servodata has been active in the IT&C industry for 30 years and offers customers solutions similar to Bittnet’s Romanian subsidiary Dendrio Solutions.
The company has been investing heavily in cybersecurity and has recently significantly developed its position in Slovakia. It has 70 IT specialists: designers, architects, developers and consultants.
This is Bittnet’s first acquisition abroad, after the group has acquired several majority or minority stakes in local companies in the last two years, mainly using money raised through the capital market.
Bittnet reported RON 108.6 million (EUR 22.4 mln) consolidated revenues in 2020, up by 9% compared to the previous year, and an operating profit of RON 4.3 million (0.9 mln), five times higher than in 2019. The group has a market capitalization of RON 164 mln (EUR 33.6 mln).
(Photo courtesy of the company)