January 6 (SeeNews) - Romanian technology company Visual Fan [BSE:ALW], operating under the Allview brand, said on Thursday that it has received the approva lof the anti-trust body to acquire a 51% stake in Intervision Trading Ro, the sole distributor of Japanese brand AKAI products in Central and Eastern Europe (CEE).
The value of the transaction was not disclosed.
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The acquisition is expected to generate a significant, long-term increase in turnover and profitability for Visual Fan, the company said in a statement filed with the Bucharest Stock Exchange, BVB.
The deal will enable Visual Fan to diversify its product range and generate distribution channels synergies that will contribute to increasing sales capacity locally and on foreign markets.
Visual Fan, founded in Brasov in 2002, manufactures smartphones, smart home systems, tablets, laptops and other gadgets. The company posted a net profit of 23.3 million lei ($5.3 million/ 4.7 million euro) in 2020, sharply up from 1.8 million lei the year before. Its revenues increased to 406.4 million lei last year, compared with 93.3 million lei in 2019.
Visual Fan delivers Allview-branded products to more than ten countries. The company had 79 employees at the end of 2020.
Visual Fan's shares traded flat 131 lei on the BVB as at 1105 CET on Thursday.
Founded in 1996 and AKAI distributor since 2009, Intervision Trading posted a net profit of 1.2 million euro ($1.35 million) on a turnover of 7.42 million euro in 2020. Intervision distributes AKAI products in Romania, Bulgaria, the Czech Republic, Croatia, Greece, Poland, Slovakia, Slovenia and Hungary.
(1 euro=4.9460 lei)