Megabyte merger moves forward

The second-largest IT company in Poland in terms of revenue will officially come into being in January 2007, when the merger between Asseco Poland and Softbank concludes with the listing of the new company on the Warsaw Stock Exchange. The firm will retain the name Asseco Poland.

Asseco Poland's president, Adam Góral, expects the enlarged company to boast strong financial results. "The level of zł.100 million in profit is feasible," he said. By comparison, the 'old' Asseco Poland had revenues of zł.153.4 million (up 97 percent year-on-year) and a profit of zł.14.3 million (a 57-percent increase), while Softbank noted revenues of zł.216.6 million and profits of zł.15.2 million in 2005.

The merger will create a company with a diversified portfolio of customers of the two firms' software products. Although both companies' main customers are banks, Softbank has significant experience working with public administration, while enterprises and financial institutions form a notable part of Asseco Poland's clients. Asseco group's knowledge of Slovak and Czech markets should enable the company to expand its activities.

The enlarged Asseco has ambitious plans with regards to foreign markets. "The merger speeds up the realization of our international plans - the merged companies will have large funds to reinvest at their disposal," Góral underlined. The firm is working on establishing Asseco Czech, which is being built around Asseco-owned PVT. Three IT companies are to be acquired and merged with PVT, and the new entity should start operating in 2007.

"We are expecting the new company to have sales of zł.200-250 million with a profit of zł.15-20 million," Góral predicts.