The finalization of the acquisition is expected in the third quarter of 2024, after the completion of all due diligence procedures.
“Currently, the target market value of the company Data Core Systems SRL is RON43 million (about EUR8.65 million). The structure of the transaction will be made up of a cash component, i.e. of the reserves made up of Arctic Stream’s profit in previous years (according to the strategy approved by the shareholders), of AST shares and bonus payments for the fulfillment of some objectives agreed by the parties,” the statement reads.
“Through the memorandum signed, we are taking a first step towards the integration of the Arctic Stream and Data Core Systems businesses in what will become the strongest technology pole in terms of the integration of IT solutions and cybersecurity services in Romania. Both companies have rich experience in complementary fields, certifications from top suppliers, an extensive client portfolio in several fields, but – above all – we share the same values and perspectives on business development. This is the beginning of a strategic partnership in which together we will become one of the strongest players in the IT services market (…),” said Dragos Diaconu, founder and CEO of Arctic Stream, holding 67.6% of the company’s share capital.
Arctic Stream’s net profit reached RON9.15 million in 2023, up 35% versus 2022, while revenue totaled RON126 million, up 54% from RON82 million in 2022. Its operatng profit (EBIT) surged 38% to RON10.6 million. AST shares have gained 29% in the last 12 months, amid deals worth RON11.4 million, triggering a market value of RON130 million.
For 2024, Data Core Systems targets revenue of RON52.6 million and operating profit of RON4.4 million.