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Czech Aricoma acquires Bulgarian Musala Soft to expand SEE’s footprint

SOFIA (Bulgaria), August 4 (SeeNews) – Bulgarian software engineering services company Musala Soft has announced that it has agreed to be acquired by Czech industry player Aricoma Group in a deal that will will strengthen the buyer’s presence in South Eastern Europe (SEE) and increase its consolidated revenue to more than 400 million euros ($407.2 million).

The transaction, for an undisclosed amount, is subject to antitrust clearances, Musala Soft said in a statement Wednesday.

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The acquisition is expected to be finalized in the last quarter of 2022. Musala Soft will retain its entire management team for the long term.

Aricoma Group, which is backed by KKCG, an investment firm headed by Czech entrepreneur Karel Komarek, sees the deal as a way to secure a leading position in the market for custom software development in South-Eastern Europe. East (SEE), he said.

“This is our second acquisition this year and it is part of our strategy to make Aricoma a major player in Europe. Musala has an exciting client portfolio, which will drive our telecom, finance and automotive verticals,” Michal Tomanek, Chief Investment Officer at KKCG, said.

Post-closing, Acoma Group will comprise 10 technology companies with a total workforce of more than 4,000 people in Central and Eastern Europe (CEE) as well as Scandinavia. Its earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated at 36 million euros.

Founded in 2000, Musala Soft offers IT consulting, analysis, design, development, testing, implementation, integration and maintenance services. It employs some 750 people in Bulgaria, North Macedonia, Egypt, Kosovo and Albania. The company’s client portfolio includes IBM, SAP, VMware, Deutsche Telecom, A1, Generali, Canaccord, Experian, Procredit Bank, Bosch, KPMG, PerkinElmer, Siemens Energy and the Financial Times.

The Bulgarian company recorded a net profit of 6.4 million levs ($3.3 million/3.27 million euros) on a turnover of 46.3 million levs in 2021, reported the local business newspaper Capital.

KKCG, valued at over €9 billion, has investments in 33 countries across sectors spanning entertainment, energy, IT and real estate. He owns shares in companies including lotteries and gaming company Allwyn, energy group MND, real estate group KKCG and Springtide Ventures, a venture capital fund with investments in European and Israeli IT start-ups.

($ = 0.9823 euros)