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Czech Aricoma snaps up Bulgaria's Musala Soft to expand SEE footprint

Czech Aricoma snaps up Bulgaria's Musala Soft to expand SEE footprint Author: Rachel Johnson.

SOFIA (Bulgaria), August 4 (SeeNews) - Bulgarian software engineering services firm Musala Soft said it agreed to be acquired by Czech sector player Aricoma Group in a deal that will strengthen the buyer's presence in Southeast Europe (SEE) and take its consolidated turnover to over 400 million euro ($407.2 million).

The transaction, for an undisclosed amount, is subject to antitrust clearances, Musala Soft said in a statement on Wednesday.

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The acquisition is expected to be completed in the final quarter of 2022. Musala Soft will retain its entire management team for the long term.

Aricoma Group, which is backed by KKCG, an investment firm managed by Czech entrepreneur Karel Komarek, sees the deal as a means to gain a top position in the custom software development market in Southeastern Europe (SEE), it said.

"This is our second acquisition this year and it fits in line with our strategy to turn Aricoma into a significant player in Europe. Musala has an exciting portfolio of clients, which will boost our telco, finance, and automotive verticals," Michal Tomanek, investment director at KKCG, stated.

Post closing, Aricoma Group will comprise 10 technology companies with a total headcount of over 4,000 in Central and Eastern Europe (CEE) as well as Scandinavia. It will have estimated earnings before interest, taxes, depreciation and amortisation (EBITDA) of 36 million euro.

Founded in 2000, Musala Soft offers services in IT consulting, analysis, design, development, testing, implementation, integration and maintenance. It employs some 750 staff in Bulgaria, Northern Macedonia, Egypt, Kosovo and Albania. The company's client portfolio includes IBM, SAP, VMware, Deutsche Telecom, A1, Generali, Canaccord, Experian, Procredit Bank, Bosch, KPMG, PerkinElmer, Siemens Energy and the Financial Times.

The Bulgarian company booked net profit of 6.4 million levs ($3.3 million/3.27 million euro) on revenue of 46.3 million levs in 2021, local business newspaper Capital reported.

KKCG, valued at over 9 billion euro, has investments in 33 countries in industries spanning entertainment, energy, IT technologies and real estate. It holds shares in businesses such as lotteries and gaming company Allwyn, energy group MND, KKCG Real Estate Group and Springtide Ventures, a venture capital fund with investments in European and Israeli IT start-ups.

($ = 0.9823 euro)

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