SOFIA (Bulgaria), May 26 (SeeNews) - A1 Bulgaria, a unit of A1 Telekom Austria Group, said on Thursday that it will acquire the entire share capital of local IT services company STEMO, as part of its long-term strategy to develop as a leader in the provision of ICT services for businesses.
The parties have decided not to disclose the value of the transaction, which the buyer will finance through its available capital, A1 Bulgaria said in a press release.
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According to industry sources quoted by local business news provider Capital, the purchase price stands at around 50 million levs ($27.4 million/25.6 million euro).
The transaction, which is subject to regulatory approval, is expected to unlock significant synergies resulting from the two companies' combined activities in IT infrastructure system integration, network connectivity, cybersecurity, and software development and implementation.
"The deal is a natural step in the development of our IT expertise and will allow us to offer increasingly complex technological solutions to companies of all sizes. I believe that our experience in software as a service (SaaS), infrastructure as a service (IaaS) and cybersecurity, combined with the long-term expertise of STEMO, will lead to the development of the entire market of high-tech solutions in the country," A1 chief executive Alexander Dimitrov said.
Sofia-based STEMO, founded in 1991, offers a complete portfolio of ICT services such as IT infrastructure development, cloud and managed services, SAP/ERP integration, software development and implementation as well as delivery and maintenance of hardware. It partners with a number of global technology companies, such as Microsoft, Cisco, VMWare, HP, HPE, Dell, Fujitsu, Lenovo, and others.
A1 Bulgaria already offers companies ICT and Internet of Things (IoT) solutions, and has several data centres across the country. Cisco, Dell, IBM, f5, SAP and Acronis are among its partner organisations.
(1 euro = 1.95583 levs)