Polish software giant set to take control of Russian competitor

Sep 3, 2012
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Poland’s biggest software maker is setting its sights on the fast-growing Russian market. Asseco Poland has signed a letter of intent to take a majority stake in a large Russian IT firm that serves the banking and financial sectors, Asseco chief executive Adam Goral said 27 August, Reuters reports.

Asseco is expected to pay about 100 million zloty ($30 million) in cash for its stake in the unnamed company, which does business on the Russian and CIS markets, the Warsaw Voice reports, citing the daily Puls Biznesu.

Asseco began by making software for Polish banks, then grew to be the seventh-largest European software vendor in terms of sales in 2010, according to The Wall Street Journal’s Emerging Europe blog. Now it hopes to crack the 14 billion euro ($18 billion) Russian software market. The group, valued at about $1.1 billion, recorded a 22 percent rise in sales in the second half of 2011 to 1.4 billion zlotys ($420 million), according to Reuters. However, the Russian deal has forced the company to delay its planned listing on the American Nasdaq stock exchange, where it hoped to raise between $200 million and $300 million.

Image courtesy Asseco Business Solutions

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Transitions Online

Transitions Online (www.tol.org) is an Internet magazine that covers political, social, cultural, and economic issues in the former communist countries of Europe and Central Asia. The magazine has a strong network of local contributors, who provide valuable insight into events in the region’s 29 countries.
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