Bulgaria's TBS Group closes purchase of Croatia's Sedam IT

The move is part of the company's growth strategy in Eastern Europe, focusing on economy of scale and knowledge, TBS Group said in a statement.

The final purchase price shall be paid in stages, based on the agreed company value and depending on its financial debt, cash, revenue over the past year and net working capital as of March 29, along with its financial results for 2024 and 2025, TBS Group said in a bourse filing on Friday.

The buyer made an initial upfront payment of 5.1 million euro, based on Sedam IT's interim financial reports as of February 29, and provided guarantees to secure subsequent payments. The final upfront payment amount will be determined and disbursed following the publication of Sedam IT's financial statements as of March 29, TBS Group said.

Zagreb-based Sedam IT, founded in 2003, has completed over 400 projects in the telecommunications, finance, retail and public enterprises sectors.

Shares in TBS Group last traded on March 27 when they closed at 9.30 levs ($5.14/4.75 euro) on the Bulgarian Stock Exchange, bourse data show.

($ = 0.925 euro)