T-Hrvatski Telekom, (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, has signed a Share Sale and Transfer Agreement to acquire the entire share capital of Combis, usluge integracija informatičkih tehnologija, d.o.o. (“Combis”). The purchase price is between EUR 25.5 million (around HRK 185.3 million) and EUR 31.5 million (around HRK 228.9 million) depending on achievement of business targets for 2010 and 2011.
Combis is a leading IT systems integrator in Croatia’s fragmented IT market. The acquisition is part of T-HT’s strategy to become a significant provider of information and communications technology and services.
The acquisition of Combis will contribute to the expansion of T-HT’s portfolio of products and services for its business customers, given Combis‘ experience in the design, implementation and maintenance of complex business solutions.
With 280 employees in nine locations across Croatia and three locations in Bosnia and Hercegovina, Combis serves a client base that includes financial institutions, telecom providers, government bodies and the industrial sector. Its expertise encompasses: IT technology and infrastructure consulting, vertical industry solutions and applications, ICT systems integration and ICT infrastructure service and maintenance.
Preliminary unaudited results for the year to 31 December 2009 amounted to around HRK 330 million of consolidated revenue.
The total Croatian market for IT products and services was HRK 6.6 billion in 2008, with the IT services market contributing HRK 2.1 billion. According to IDC estimates there were only 13 providers posting IT services revenue of more than HRK 50 million in 2008.
Combis will continue to operate as a separate legal entity and will continue to identify and fulfil opportunities to expand its market share.
Subject to Croatian Competition Agency approval, the transaction is expected to be completed in the second quarter of 2010.
Ivica Mudrinić, President of the Management Board and CEO said:
“The acquisition of Combis is an important step for T-HT as we aim to broaden the portfolio of services and products to become a significant ICT provider across Croatia. It will give us a strong capability in the provision of complex IT solutions for a wide range of business customers, complementing the telecommunications services we already provide.”