Commenting on the development, Alexander Dimitrov, chairman of the management board and CEO of A1 Bulgaria, said: “The acquisition of Stemo will contribute for the expansion of our share on the ICT business solutions market. Ultimately, the addition of Stemo to A1’s family will help our common goal – to solve the challenges which our corporate clients face with the help of the new technologies in the most quick and efficient manner possible. The deal is a natural step in the development of our IT expertise, and it will allow us to offer more complex technological solutions to private, public and government entities, no matter of their industry or size. I believe that our experience in Software as a Service, Infrastructure as a Service and cyber security, combined with Stemo’s expertise will lead to development of the whole market of ICT solutions in the country”.
Georgi Tihov, co-founder and CEO of Stemo, added: “Stemo has a 31-year history on the market, and we have always been amongst the leading IT companies in the country. We are proud with the skills and the professionalism of our employees, with whom we are working for so many years. The deal with A1 Group will allow us to better utilize our capabilities and to offer IT solutions to more international clients. I am sure that the cooperation will improve the level of technological development of Bulgaria”.
Following the acquisition, Stemo will continue its autonomous operations benefiting from the international know-how, financial resources, technical infrastructure, sales force, and customer base of its new owner A1 Bulgaria.
A1 will finance the transaction, which is subject to merger control clearance, via existing cash flow.