IT firm Asseco Poland to take over Israeli peer Formula Systems for USD 145.3mn.

By bne IntelliNews September 6, 2010
CEE's biggest IT company Asseco Poland has an agreement to purchase the majority shares in Israeli IT company Formula System, listed on Nasdaq, the company's CEO Adam Goral and Formula System's CEO Guy Bernstein have announced. The transaction value is not to exceed USD 145.3mn. Asseco Poland said earlier that it was close to take over an IT company listed on the Nasdaq stock exchange. The transaction was to be connected with purchasing equities in cash by Asseco, rather than shares swap. The transaction was to be announced last Monday, but it was delayed due to the need to sort out technical details of the agreement. Asseco will buy 49.16% shares in Formula Systems from the fund Emblaze and 1% from the purchased company's management member. It plans to cover around half of the price from its own resources and half - from existing credit lines. Goral said earlier that thanks to acquisition, the Asseco group would enter the US market, and might also become visible on the Russian market. The Asseco group's companies have lately conducted a lot of less significant acquisitions, and some of them were spectacular in the Balkans and in Spain. Goral earlier said that the "Nasdaq company" had an own acquisition plan. Goral also said that Asseco would continue its strategy of the group's building through minor acquisitions. Goral also announced that Asseco Poland could issue shares still this year , but he stressed that the SPO would not be directly linked to Formula Systems' takeover. Together with the SPO, Asseco would write-off all of its 5.6mn treasury shares, he added. After the Israeli acquisition, Asseco Poland's unit debt would stand at around PLN 100mn (EUR 25mn), which the share issue could allow it to start the new year with PLN 150-200mn (EUR 38-50mn) of cash, Goral elaborated. The issue proceeds would be spent on acquisitions in Western Europe and, possibly on the privatization of mining sector-oriented IT firm COIG, the CEO added. He stressed that Black Rock had expressed interest in the SPO, he also counted on the participation of Israeli investment funds. ISB, tom

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