IT sector shake-up
Comp Rzeszów, founded ten years ago and the third largest IT integrator in Poland in terms of market share, is moving quickly to capitalize on the success of it's floatation on the Warsaw Stock Exchange (WSE) two months ago. President and top share-holder Adam Góral beams: "We have some zł.42 million from the IPO and we estimate our assets will bring it to zł.67 million that will be used for takeovers."
Those takeovers could include up to four different companies in three different countries throughout the region. Interestingly, of those four, three belong to Comp Rzeszów's competitors.
The company completed negotiations last week with Slovakia's biggest software maker, Asset Soft, and plans to acquire troubled Czech integrator PVT during the first quarter of 2005.
According to Gabriella Żukowicz, director of the management office at the company, Asset Soft should give Comp Rzeszów a stable foothold in the regional market. "We are buying control of this firm because it's financially strong and stable. It's a good firm with a strong position in the market."
In all, the deal gives Comp Rzeszów 55 percent of the firm, at a price of zł.40 million.
Once Asset Soft is acquired, that company will put up zł.20 million for 50 percent of PVT, a subsidiary of Prokom, a Comp Rzeszów competitor. Last quarter, Prokom only managed profits of zł.0.7 million, and its stock price has dropped nearly half its value since its peak in March.
The sale of PVT could prove beneficial to both companies, since by giving Comp Rzeszów a foot in the door of the Czech systems-integration market, the sale would also take some pressure off Prokom.
"The company clearly is in need of a restructuring process and that takes time and attention," says CA IB analyst Przemysław Sawala-Uryasz of PVT.
If the expansion plan works out, Comp Rzeszów expects to double its 2004 revenues (zł.111.6 million) to zł.210 in 2005, for a profit of zł.20 million (compared to zł.13 million this year).
Those takeovers could include up to four different companies in three different countries throughout the region. Interestingly, of those four, three belong to Comp Rzeszów's competitors.
The company completed negotiations last week with Slovakia's biggest software maker, Asset Soft, and plans to acquire troubled Czech integrator PVT during the first quarter of 2005.
According to Gabriella Żukowicz, director of the management office at the company, Asset Soft should give Comp Rzeszów a stable foothold in the regional market. "We are buying control of this firm because it's financially strong and stable. It's a good firm with a strong position in the market."
In all, the deal gives Comp Rzeszów 55 percent of the firm, at a price of zł.40 million.
Once Asset Soft is acquired, that company will put up zł.20 million for 50 percent of PVT, a subsidiary of Prokom, a Comp Rzeszów competitor. Last quarter, Prokom only managed profits of zł.0.7 million, and its stock price has dropped nearly half its value since its peak in March.
The sale of PVT could prove beneficial to both companies, since by giving Comp Rzeszów a foot in the door of the Czech systems-integration market, the sale would also take some pressure off Prokom.
"The company clearly is in need of a restructuring process and that takes time and attention," says CA IB analyst Przemysław Sawala-Uryasz of PVT.
If the expansion plan works out, Comp Rzeszów expects to double its 2004 revenues (zł.111.6 million) to zł.210 in 2005, for a profit of zł.20 million (compared to zł.13 million this year).
