WSE Recent Upturn Aids IT Integrator Expansion Plans

By Timothy Sifert

The recent rallies on the Warsaw Stock Exchange have fueled Ster-Projekt's plans to float about zł.100 million worth of shares to pay for the purchase of small- and medium-sized local companies with industry-specific specialization.

Michał Tuszyński, director of strategy and development at the IT integrator, said company executives took note of a veritable "bull market" on the local exchange. On September 1, the WSE's WIG20 index hit an impressive 1700 points, its highest peak since late 2000. The event had some investors declaring an imminent turnaround for the local capital markets.

And in this environment, companies take action. "This helped us to make our decision," Tuszyński said. As the stock market seemed settled in the doldrums earlier this year, few companies made serious announcements of planned financial market activity.

"We are planning acquisitions of mid-sized companies," Tuszyński said. He explained that Ster-Projekt is eyeing acquisitions targets with zł.10 million in yearly revenues at most. And in companies that are even smaller, it would look for very specific technologies to augment Ster-Projekt's product portfolio.

The IT integrator targets clients in banking, telecom, industrial and government-related munications sectors; it is now searching for smaller companies with novel technologies to better serve those sectors. He said that in the next two years, executives could opt to make as many as three investments in midsize companies. Besides noticing changes in the financial markets, he said that the company also considers now the ideal time to consolidate the fragmented local market. "There is good sentiment towards IT companies," he pointed out.

Ster-Projekt is close to signing an investment banking contract for the secondary offering of its shares.