Asseco continues acquisition drive amid booming profits

The company, which yesterday reported spectacular H1 earnings growth, said it was close to completing five takeovers in the Balkans. The company also announced it was now looking for takeover targets in Western Europe and the US, with first deals expected as early as next year. Asseco, which derives 85% of its revenues from providing IT solutions for the financial services and banking sectors, has recently embarked on an aggressive acquisition spree in the region to diversify its portfolio, as well as boost revenues and earnings. Under the strategy, most of the newly-acquired members of the Asseco Group are to be listed on the Warsaw Stock Exchange. The prospect of a listing is a major trump card in its talks with prospective targets. "If it wasn't for us, these companies would have never even thought of going public," says Adam Góral, Asseco CEO. By mid-2008, Asseco plans to list five of its foreign subsidiaries on the WSE. The combined value of the IPOs is estimated at zł.500  million. The first in line will be its Czech and Slovakian companies, due to make their stock market debuts still this year. The Asseco Group reported a net profit of zł.77.6 million, up 417%, on sales of zł.499.9 million, up by 131%, in H1 2007. Asseco, the Polish holding company, had a net profit of zł.48.6 million, up by 302%, on sales of zł.187.6 million, up by 41%. (Puls Biznesu, p. 5, 6) R.M.