The management buys out Miratech
On September 15, 2011, EDB ErgoGroup ASA enters into an agreement with the management of Miratech, pursuant to which the management exercises its put option in the amount of USD 7.14 million and the stake of 39.9% shares, with the result that EDB ErgoGroup ASA ("EDB ErgoGroup") becomes the owner of 100% of the company's share capital.
- (1888PressRelease) September 17, 2011 - Thereupon Miratech management buys out 100% of the share capital of Miratech for the agreed price of USD 5.89 million. Under the transaction EDB ErgoGroup transfers 60.1% of share capital of Miratech and makes a net cash payment to the management in the amount of USD 1.25 million. As a result of this deal, Valeriy Kutsyy, Miratech CEO, and Nikolay Royenko, Miratech president, will own 100% of the capital stock of Miratech. The deal will be finalized within one month upon signing the agreement.
"Partnership with EDB ErgoGroup was important for Miratech; over the last few years thanks to support from our majority shareholder, we have achieved remarkable results and managed to multiply our sales and number of employees", comments Valeriy Kutsyy, Miratech CEO. "Due to the changed priorities, Miratech will continue as an independent organization, outside of the group. Miratech management is confident that the company will be even more successful over the next years; that is why without any doubts we accepted the invitation from EDB ErgoGroup to negotiate the possible buyout of the full capital stock of Miratech".
In summer 2007 after the purchase of 60.1% of the Miratech shares, the Norwegian group EDB Business Partner ASA ("EDB") became the major shareholder of the company with intention to execute a call option and become the 100% shareholder of Miratech. In 2010 EDB merged with ErgoGroup into a new group branded today as EDB ErgoGroup. The ErgoGroup CEO became a CEO of the merged company. The management of the merged group has adopted a new strategy. According to the new strategy, EDB ErgoGroup will have a strategic focus on the Nordic market and, as a direct consequence, will exit Miratech. One of the major reasons was a strong position of Miratech in the Ukrainian market, where EDB ErgoGroup does not have either ambitions or possibilities to further invest in product development and sales to Ukrainian customers. The negotiations on possible exit of EDB ErgoGroup started at the beginning of 2011 with many possible alternatives including selling back to the management and other scenarios.
Since 2007 and up to 2011 the company has significantly strengthened its business. The number of employees has grown from 180 employees at the end of 2007 to 500 employees nowadays. Since 2008 Miratech has been building its own IT service network, which covers over 150 cities of Ukraine. Over the recent four years the sales have been demonstrating an annual compound growth rate at the level of 36%. The services sales in Ukraine have been doubling each year over the same period. The planned total sales of IT services are estimated to be UAH 80 million (USD 10 million) with an EBITA at the level of 8%.
Further contact
Alexey Perekatov, Vice President, Corporate Communication. Tel: +380 44 2064090
Valeriy Kutsyy, CEO. Tel: +380 44 2064090
About Miratech
Miratech is a Ukrainian information technology company that supplies an array of IT services to corporate customers. The company was founded in 1989 and is headquartered in Kyiv. Miratech's service network spans all 25 regions of the country, including R&D centers in several major cities of Ukraine. Miratech delivers 50 percent of its services to corporate clients in the United States and Western Europe, and 50 percent - to those in Ukraine. Miratech is a co-founding member of IT Ukraine Association. As stated in The 2008 Black Book of Outsourcing, Miratech ranks second in the Top 10 of Eastern and Central Europe IT outsourcing providers. In 2010 based on report of State Statistics Committee of Ukraine, Miratech ranks number one by the compound index of turnover, profit, salary and productivity; as a result, Miratech is 2010 Industry Leader in the software services in the National Business Rating.
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