BITTNET SYSTEMS S.A., (hereinafter referred to as the “Company”) informs the shareholders about signing of an investment contract (business transfer agreement) with Crescendo International SRL, a company with a history of 25 years in Romania, a turnover of RON 79 million in 2017 and a net profit of RON 4.4 million.
The investment contract will be subject to the approval of the Extraordinary General Meeting of Shareholders.
The contract provides inter alia:
• The transfer of the IT&C integration business of Crescendo International SRL to dendrio, a company with this specific activity in the Bittnet Group, for the amount of RON 10,900,000;
• The transfer includes the employees involved in the IT&C integration activity, as well as the equipment necessary for carrying out this activity, starting with a later date, which will occur after the following suspensive conditions are fulfilled:
- Obtaining the Competition Council’s approval of the transaction (the Company has already begun procedures in this regard);
- Obtaining the approval for this transaction in the Extraordinary General Meeting of Shareholders for each part of the transaction – the Company will start procedures to convene the EGMS to ratify the investment;
- Obtaining the funding (in the form of a corporate bond issuance or a bank loan) by Bittnet, in order to finance the transaction. After the closing of the transaction, the IT&C integration activity of Crescendo will be integrated into the operations of dendrio, aiming to create a powerful IT&C integrator with regional coverage.
The transaction timeline is subject to the approvals specified above, but the Company expects the transaction to be completed by the end of 2018.