Est Media has found its future in IT
Est Media Nyrt., listed on the Budapest Stock Exchange, acquires a Hungarian information technology company. As a result of the transaction, which has a total value of nearly HUF 30 billion and includes a share issue, the holding company of Delta Group will become the main shareholder of Est Media.
Est Media is back in business: with the acquisition of a 100% stake in Delta Systems Ltd., the listed company will enter the infocommunications sector. The company, which has been part of the Delta Group, one of the leading Hungarian-owned systems integrators, for more than 30 years, will receive HUF 2.35 billion in cash out of the HUF 28.6 billion purchase price. In a private placement, 125 million Est Media shares will also be issued to Delta Group's holding company, Deltagroup Holding Zrt., at an issue price of HUF 210 per share for a total of HUF 26.25 billion, making it the main shareholder of the listed company. In order to secure the cash settlement, Est Media has entered into a long-term shareholder loan agreement with one of its current major shareholders for a term of 5 years.
Delta Systems Ltd., which focuses on complete infrastructure solutions (architecture design, network solutions, hardware components, application integration, infrastructure management), is expected to generate revenues of close to HUF 16 billion in the financial year starting 1 July 2018 and ending 30 June 2019.
At the same time as the transaction, the company has also started to develop a new growth strategy to become a key player in the industrial digitalisation process in the region within 3-5 years. The strategy, to be presented in the near future, will also build on own product development and acquisitions.
In the future, the current three-member board of Est Media will be supplemented by three members nominated by Deltagroup Holding Zrt. To approve the personnel changes and the transaction, the listed company will soon convene an extraordinary general meeting.
Industrial digitalisation is set to be one of the most dominant economic trends in the coming years around the world, presenting a huge challenge but also an opportunity for Central and Eastern European companies. Based on the expertise accumulated in Delta Systems Ltd., through organic building and further acquisitions, and by taking advantage of the financing opportunities in the capital markets, I believe that we can build a professionally leading, internationally competitive Hungarian company in this innovative industry," said István Papp, member of the Board of Directors of Est Media Nyrt.
Delta Group has become one of the leading system integrators in Hungary thanks to 30 years of continuous development, and the management has been actively looking for ways forward. I believe that we have found the right direction, with the developed professional program and the stock exchange listing we can become a dominant player in the IT market in the Central and Eastern European region - said Levente Pércsi, Managing Director of Delta Systems Ltd., one of the owners of the Delta Group holding company.
