A new Spin

Just a year after ABG merged with Ster-Projekt, the company has taken another step in consolidating the market by signing a merger agreement with fellow IT company Spin.

"The market forces you to make fast decisions," the president of ABG-Ster Projekt, (ABG SP) Dariusz Brzeski, said. "The main reasons for the merger were strengthening the new firm's position on the market, increasing competitiveness and diversifying the revenue structure," he explained.

Projects for public administration constituted both ABG SP and Spin's major source of income, and after the merger the new entity has ambitious plans. "We want to be a significant, if not the leading player with an offer for the public sector," Brzeski declared.

Other fields in which the merged company, which is to be called ABG Spin, will operate are telecommunications, energy, industry and security services (including projects for the military and NATO).

Brzeski, who will preside over the board of the merged firm, also declared that the company will focus on software rather than integration. "Within two years we want 70 percent of our revenue to come from software production," he said.

Today software accounts for one-third of ABG SP's sales revenue, while in the case of Spin it makes up over 60 percent. "The merger with Spin brings us closer to our goal," Brzeski said. He added that he expects revenue from software to grow at a minimum of 15-20 percent per year. "We hope that it will be even faster," said Brzeski.

The fusion initiated by the signing of the agreement last week is expected to be completed by the end of June 2007.