Signing of an investment agreement
Current report 03/2007 dated 26.01.2007
Today, the Company ATM S.A. and Sputnik Software Sp. z o.o. having its registered office in Poznań signed the investment agreement for acquisition by ATM of shares in Sputnik from the present shareholders. As a result of the deal, ATM intends to take hold of 60% of shares in Sputnik Software. The shares being acquired will be paid for by ATM in cash. The present shareholders of Sputnik Software will keep the remaining shares. The investment agreement provides for entering into the agreement for the acquisition of shares in Sputnik Software by ATM S.A. before March 31, 2007, after the statutory authorities of both companies adopt relevant resolutions, thus giving consent to the deal.
The activity of Sputnik Software includes software production and providing IT services to the public sector. The company is a leader in the market of software solutions for local government administration, where the “modern office” series software package, being at the moment one of the best and more comprehensive solutions of the type in the market, is targeted. The company also has experience with large advanced architecture IT systems, such as the national system for managing budgets of territorial government units, made for the Polish Ministry of Finance.
According to preliminary estimates, in 2006 Sputnik Software generated PLN 2,350 thousand of sales revenues, and a net profit of approx. PLN 500 thousand. The company shows fast growth in sales and high profitability. It has an efficient team of programmers and high competences in application software.
So far, the share of central and local government administration clients in sales of ATM S.A. has been insignificant. The acquisition of shares in Sputnik will allow ATM to extend the offer for that important sector. It is of special importance with respect to the foreseen rapid increase in the public sector’s orders for IT systems, estimated at billions of PLN in the years 2007—2013. By consolidating the position of Sputnik Software Sp. z o.o., and developing its own competences in the field of software production, ATM is planning to take a significant position in that market. Supplementing the ATM portfolio with application software will allow to provide complete service, combining system integration, application software, and telecommunications services.
Roman Szwed — President of the Management Board,
Tadeusz Czichon — Vice-President of the Management Board