A1 Bulgaria, a unit of A1 Telekom Austria, has purchased Bulgarian ICT company Stemo for an undisclosed fee
A1 Telekom Austria Group said on Thursday that it has acquired Bulgarian ICT company STEMO.
STEMO was founded in 1991 and offers software services and other ICT management and support services to the international market.
Under the terms of the agreement, STEMO will still operate independently of A1 Bulgaria, while benefitting from the company’s financial resources and customer base.
This agreement is of the result of a broader strategy from A1 that will allow them to utilise the financial and technological knowledge of STEMO to tackle complex technological problems for public, private, and government organisations.
“The deal is a natural step in the development of our IT expertise and will allow us to offer increasingly complex technological solutions to companies of all sizes. I believe that our experience in software as a service (SaaS), infrastructure as a service (IaaS) and cybersecurity, combined with the long-term expertise of STEMO, will lead to the development of the entire market of high-tech solutions in the country,” said A1 chief executive Alexander Dimitrov.
The transaction, which is subject to regulatory approval, is expected to result in significant improvements in terms of network connectivity, cybersecurity, and software development for both parties.
The parties have decided not to disclose the value of this agreement, however A1 will finance the transaction, ancillary to merger control clearance, via its existing cash flow.
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