Budapest Stock Exchange listed Est Media Nyrt. announces acquiring Hungarian IT company Delta Systems Ltd. As a result of the almost HUF 30bn (approx. EUR 90.7 million) transaction, which includes issuance of shares, Deltagroup Holding will be the key shareholder of Est Media.
Est Media is about to start its business operations again: the stock exchange listed company, after purchasing 100 percent ownership of Delta Systems Ltd., will appear in the info-communication area. Delta Systems belongs to the more than 30-year-old Delta Group, one of the leading Hungarian systems integrator companies. The payment of HUF 2.35bn (approx. EUR 7.1 million) from the purchase price of HUF 28.6bn (approx. EUR 86.5 million) is made in the form of money. Est Media concluded a long term loan agreement for five years with one of its shareholders to ensure the payment.
Furthermore, Deltagroup Holding will be the majority owner of the listed corporation, after Est Media issues 125 million ordinary shares for Deltagroup Hungary Ltd. at the issue price of HUF 210 (EUR 0,64) amounting to HUF 26.25bn (approx. EUR 79.4 million) in a private capital increase.
The main activities of Delta Systems Ltd. are complete infrastructure solutions, such as architecture planning, network solutions, hardware elements, integration of applications and infrastructure management. Its annual revenue in the financial year between July 1st, 2018 and June 20th, 2019 is awaited around HUF 16bn (approx. EUR 48.4 million).
The company has also started developing its new growth strategy simultaneously with the transaction. The aim of the strategy is to turn them into a leading participant in the industrial digitization process in the next 3-5 years. It includes own product development, acquisitions, and is to be announced soon.
Further on, the three-member board of directors of Est Media gets extended with members chosen by Deltagroup Holding Ltd. The listed company will soon convene an exceptional shareholders’ meeting to approve the transaction and the personal changes.
„Industrial digitization will be one of the most decisive economic trends around the world in the future. It means a huge challenge and opportunity for Central Eastern European companies. I truly believe, that building on the expertise of Delta Systems Ltd., we can create a large, innovative and internationally competitive Hungarian enterprise through organic development, more acquisitions and using the capital market opportunities in this area” – declared Istvan Papp, member of the board of directors of Est Media Plc.
„Delta Group is one of the leading system integrators of Hungary, thanks to its continuous development in the last 30 years. The management board consistently strives to find new ways of improvement. I believe that we head in the right direction, so we could turn into a significant participant in the IT area of the Central Eastern European region with a well-constructed professional programme and stock market presence” – said Levente Pércsi, Executive Director of Delta Systems Ltd. and part-owner of Deltagroup Holding.