The transaction is subject to approval by the Competition Council. To the extent that it is completed, Dataware will join the “Cloud & Infrastructure” business group within the Technology Division of Bittnet Group. Furthermore, it will be integrated into the financial consolidation perimeter of Dendrio Solutions, a company that brings together the IT&C integration activities within the group.
“Approximately a month ago, at the time of publishing the results for the first nine months of 2022, we mentioned that we were in advanced discussions for other M&A transactions, a process through which we aim to bring on board new companies that will allow us to consolidate our presence in the classic IT&C integration activity and the managed services area. We are glad that we announced a new transaction by the end of this year and reached our objective of starting 2023 with a capacity to generate a turnover of over 300 million lei. Dataware is a company that will expand the range of IT products and services of our technology division by adding new technological capabilities and certifications. We estimate that the transaction will be completed in the first part of next year,” said Mihai Logofatu, CEO of Bittnet Group.
Dataware is a Romanian IT&C company founded in 2011 in Bucharest by entrepreneurs Catalin Georgescu and Constantin Savu. Currently, the company implements technology services and solutions such as data networks, storage block & file, storage area networks, disaster recovery and business continuity solutions, forensic software, and security solutions. The company has partnerships with important producers in the field, such as Fujitsu, Cisco, Brocade, and M-Files. The Dataware team consists of approximately 40 employees and collaborators.
The value of the transaction announced is estimated at RON18.6 million. The amount will be paid partially in cash – RON13.6 million, by Dendrio, while the remaining RON5 million will represent BNET shares. Considering that the transaction value also includes BNET shares, the 70% ownership stake in the share capital and the voting rights of Dataware acquired by Bittnet Group will be divided proportionately between Bittnet Group (19%) and Dendrio (51%). The remaining 30% of Dataware will remain the property of the company’s founders who will additionally receive a variable amount, representing 30% of Dataware’s net profit for 2022.
“This consolidation comes at the right time in terms of the capital market, showing the maturity of the Romanian capital. At the same time, the necessity of the existence on the Romanian market of a domestic integrator capable of implementing future digital transformation projects in Romania led to this transaction. The collaboration of Bittnet Group companies with Dataware is based on a proven history over time and in various successfully implemented projects. Thus, joining the Bittnet group – the first Romanian company listed on the stock exchange – in Dataware’s shareholding came naturally. The Bittnet Group maintains its promises to its shareholders and, at the same time, consolidates its position in the IT&C market in Romania. Through this transaction, as well as through future transactions, it will fulfil its assumed promise – achieving a consolidated turnover of RON500 million in 2024“, stated Constantin Savu, co-founder of Dataware.
Regarding Dataware’s financial results, in 2021, the company recorded total revenues of RON28 million and a gross profit of RON3.5 million. For 2022, the company estimates a turnover of RON49 million, an EBITDA of RON5.2 million, and a gross profit of approximately RON4 million.
Upon the completion of the transaction, the Dataware team will be integrated into the “Cloud & Infrastructure” business group within the Technology Division of the Bittnet Group. In the first nine months of 2022, this division, represented by Dendrio, Optimizor (formerly IT Prepared), Elian, Nenos, Nonlinear, FORT (the new entity formed by GRX and ISEC), recorded revenues of RON95.5 million, up 29% compared to the same period in 2021 and an operating profit of RON4.7 million, the statement also reads.
This is Bittnet Group’s third transaction in 2022, following the acquisitions of TopTech and 2Net. The transaction was facilitated by Kogaion Investments, which provided M&A advisory services to the buyer and coordinated the transaction process. The Kogaion Investments team, coordinated by Adinel Tudor, assisted Bittnet Group with all transactions on the local market carried out by the group in 2021 and 2022. The local M&A consulting boutique has over ten years of experience in the field, during which it was involved in transactions with a total value of over EUR200 million.