March 16 (SeeNews) - Bulgarian software and IT services group Bianor Holding [BUL:BNR] said on Thursday that it signed a definitive agreement to acquire 100% of local software developers Itido Technologies and Databreathe, as part of its strategy to complement organic growth through acquisitions of Bulgarian software companies.
As part of the deals, the founders of Itido and Databreathe will become substantial Bianor shareholders, the buyer said in a stock exchange filing.
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The pro-forma aggregate revenue of the three transaction parties exceeded 11 million levs ($5.96 million/5.6 million euro) in 2022, up 37% on 2021, Bianor said.
Itido, which has been active for nine years, specialises in the development of web and mobile device software products for enterprises like Nokia and Bosch as well as numerous start-ups in Germany and the Scandinavian region.
Databreathe's focus lies on machine learning and artificial intelligence (AI) software. Its work spans digital solutions for sales analytics and forecasts or personalised product recommendation platforms, with customers including large US companies featuring online and catalogue retail brands.
Bianor did not reveal any other parameters of the transactions, noting that the change of ownership involves certain confidential pre-agreed terms outside of the deal parties' control. Publicising them at this stage may harm Bianor's interests or jeopardise transaction completion, the company explained.
The target companies will retain their brand identities, management teams, strategies and focus. They will operate largely as independent subsidiaries of the holding, similarly to the group's main entity, Bianor Services.
"These transactions will add a lot of value to our shareholders, doubling the group's revenues, accelerating its growth and significantly increasing consolidated earnings per share," Bianor Holding CEO Kosta Yordanov said. He added that the deals give Itido and Databreathe an opportunity to access the capital market for funding and liquidity and diversify their client base to help manage business risk.
The management of Bianor is exploring further opportunities for acquisitions, the holding said.
In December, Bianor said that it is considering a capital hike to fund planned inorganic growth in 2023 that will complement revenue streams generated through defence and video data streaming projects. The group received shareholder approval last month for a capital increase of up to 25 million levs and a share buyback programme targeting up to 3% of its equity capital.
Shares in Bianor last traded at 19.80 levs on the BaSE market of the Bulgarian Stock Exchange.
(1 euro = 1.95583 levs)