Romania’s Bittnet to buy 35 per cent of Czech IT co Servodata for 1.4 mln Euro

Romanian IT group Bittnet Systems [BSE:BNET] said that it plans to acquire a 35% stake in Czech IT company Servodata for an estimated 1.4 million euro ($1.7 million).

The transaction will be subject to approval at the general meeting of shareholders from both Bittnet and Servodata and is subject to the successful completion of the due diligence process, Bittnet said in a statement filed with the Bucharest Stock Exchange, BVB on Monday.

Bittnet’s shareholder meeting is scheduled for April 27.

In case of successful completion of the investment, the board of directors of Servodata will consist of five members, with two seats belonging to the shareholder Bittnet.

Under the contract, Servodata will start distributing cash dividend of maximum 30% of the annual profit starting with the next fiscal year. In addition, Bittnet will provide financing in the form of a loan, either directly or through the provision of corporate guarantees, up to a maximum of 2 million euro over the next 3 years, based on Servodata’s development projects.

Headquartered in Prague, Servodata has been active in the IT&C industry for 30 years and offers customers solutions similar to Dendrio Solutions, a company of Bittnet. The company specialises in the integration of technologies from international vendors such as Dell, HP, Microsoft as well as in the design and implementation of technology infrastructure, in IT consulting and outsourcing. The company achieved total revenues of 10 million euro and an EBITDA of 1 million euro in 2020. For 2021, it has a budgeted turnover of 12 million euro, an EBITDA of 2.5 million euro and a profit of 1.5 million euro.

Bittnet was founded in 2007 by Mihai and Cristian Logofatu. The company focuses on IT training and delivering end-to-end IT infrastructure services and solutions from companies like Cisco, Microsoft, Dell, VMware and HP, among others.

At the end of February, the BVB announced that Bittnet’s shares will be included in the FTSE Global Micro Cap and FTSE Total-Cap indices as of March 22.