September 28 (SeeNews) - Romanian technology company Visual Fan [BSE:ALW], operating under the Allview brand, said on Tuesday it will acquire a 'significant stake' in Intervision Trading Ro, the sole distributor of Japanese brand AKAI products in Central and Eastern Europe (CEE).
Through the acquisition, Visual Fan aims to diversify its product range and generate distribution channels synergies that will contribute to increasing sales capacity locally and on foreign markets, it said in a press release.
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The size of the stake and the estimated value of the transaction were not disclosed.
"Experience has shown us that diversifying the product range is beneficial in the IT&C industry, and AKAI products will enrich the Allview offer, as we are talking about complementary equipment, which we do not produce," Visual Fan CEO and founder Lucian Peticila said.
Allview also expects the deal to generate a significant, long-term increase in turnover and profitability.
The transaction is pending approval of Romania's anti-trust body.
"Together with Visual Fan, we will strengthen our position in the markets where we are present and we will identify new ways to highlight the product portfolio of both companies, bringing additional opportunities to both our customers and to Allview," Intervision Trading CEO and founder Dorin Ciobanu said.
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 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 over ten countries, including Poland, Germany and the Baltic States. The company had 79 employees at the end of 2020.
Visual Fan's shares traded 1.67% higher at 122 lei on the BVB as at 1257 CET on Tuesday.
Founded in 1996 and AKAI distributor since 2009, Intervision Trading posted a net profit of 1.2 million euro 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=4.9482 lei)