- On July 24th, Bittnet has successfully closed the negotiations and signed an investment contract with Elian Solutions SRL, a provider of ERP solution Dynamics NAV
- Through this investment, Bittnet will reach 51.0082% stake in Elian Solutions
- The deal is expected to close by August 31st, 2018
On July 24th, Bittnet (BNET) has successfully closed the negotiations and signed a contract for an investment in Elian Solutions SRL. Through this operation, Bittnet will gain a controlling stake of 51.0082% of the acquired company. The mandate to negotiate and sign the agreement has been granted to Bittnet’s management by the Shareholders Meeting Decision nr. 7 from April 25th, 2018.
“Elian Solutions’ portfolio perfectly completes the IT services and secured hybrid cloud solutions portfolio of dendrio, the integrator of the Bittnet Group. The typology of the projects on which we have collaborated starting from 2015 until today is the same one as the strategy on which dendrio is concentrated for years 2018-2020: turnkey projects, high value-added IT solutions, delivered as-a-service, with hybrid infrastructures (on premise and in the cloud), which ensure scalability and resilience in similar or lower cost conditions” said Mihai Logofatu, CEO at Bittnet.
ELIAN Solutions is a company with over 10 years’ experience in providing implementation services for the Enterprise Resource Planning (ERP) solution, Microsoft Dynamics NAV. The solution implemented by Elian allows companies to know the status of their inventory, assets and liabilities as well as it helps predict, inter alia, the cash-flow and to trace the production processes. The company, founded by Iulian Motoi and Mihaela Ivancuta, has 15 employees and in 2017, has reached revenues of over RON 3,5 million.
“We are thrilled to reach this new stage in the life of our company and to become part of the Bittnet Group. We are confident that through this association, we will be able to increase our performance as well as offer our clients a one-stop-shop for top quality IT integration services” said Iulian Motoi, CEO at Elian Solutions.
The investment in Elian Solutions will be performed in 2 stages. In the first stage, Bittnet will participate in the company’s capital increase, which will allow it to reach a 33,33% stake in Elian Solutions. In the second stage of the process, the founders have agreed to sell additional stake in the company so that Bittnet reaches 51.0082% shareholding position in Elian Solutions. The deal is estimated to close by August 31st, 2018.
The capital for this transaction has been raised by Bittnet during BNET23 placement of corporate bonds, which was successfully closed earlier this month. The company has raised RON 4.7 million during a private placement, with the purpose of acquiring controlling stake in Elian Solutions as well as a 25% stake in Equatorial Gaming.
This is the second acquisition for Bittnet Group. In the third quarter of 2017, the company has acquired what was formerly known as GECAD NET from entrepreneur Radu Georgescu. Since then, the company has been fully integrated into Bittnet’s structure and has been rebranded to dendrio. dendrio solutions SRL is a separate legal entity, in which Bittnet SA has a 100% stake. Starting from H1 2018, the financial results of both entities will be jointly presented in Bittnet’s consolidated financial results.
“We expect that the integration of Elian Solutions will follow a similar path to the one of GECAD NET and we anticipate that the whole process to be finalized by the end of this year. Our next project is investment in Equatorial Gaming, in order to strengthen the group structure with education and technology activities. This structure will lead us to reaching RON 100 million in revenues in 2020” said Cristian Logofatu, CFO at Bittnet.