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ATM S.A. invests in Sputnik Software and enters onto the market of IT solutions for administration
30.01.2007

ATM S.A. and Sputnik Software Sp. z o.o. have entered into an investment agreement under which ATM will acquire 60% of interest in Sputnik Software.

For ATM, this step means expansion of the Capital Group’s product portfolio, and above all entry onto the market of software for the public sector (and particularly local government administration), where until now the company has been doing only limited business. It is a prospective market due to huge needs and the availability of European Union aid measures. The agreement is also very important for Sputnik Software, which obtains capital and technological support from ATM and therefore becomes capable to participate in large, much more difficult tenders.

In result of the investment agreement signed on January 26 this year, ATM will acquire 60% of interest in the Poznań-based company Sputnik Software. The transaction will be settled by cash. The remaining interest will be retained by the existing owners of Sputnik Software. The contract should be finalized until March 31 this year, after adopting relevant resolutions by the respective company governing bodies.

Sputnik Software was established in 2000. The company develops software and provides IT services for the public sector throughout the country. Despite of small revenues, Sputnik is already recognized as one of leading providers of software solutions for local-government administration. The company offers a “modern office” software package addressed to this category of customers. Also, the company has implemented some large IT systems based on advanced architectures, such as the nation-wide system for managing budgets of local-government units, deployed for the Ministry of Finances. The system is used by all local-government units in Poland.

Sputnik Software has a high sales growth rate and high profitability. According to preliminary estimation, the company achieved last year sales of PLN 2.35 million and a net profit of PLN 0.5 million.

”Acquiring interest in Sputnik Software opens before the ATM Capital Group new possibilities to achieve a significant position on the market of IT solutions for public administration,” said Roman Szwed, President, ATM S.A.

”Sputnik has competent developers who will make an excellent addition to our existing team,” adds Witold Grzesik, deputy director, software department, ATM S.A. “This will enable us to significantly reduce costs of research and development works, particularly those related to Microsoft solutions. Sputnik has deployed its own development methodology SputnikAgile, which we are carefully studying in the context of using it in ATM.”

The expansion of the company’s offer for public-administration customers is particularly important in connection with the predicted fast growth of orders for procurement of IT systems for the public sector, estimated at billions zlotys over the period 2007-2013. Through strengthening the position of Sputnik Software and expanding its own competencies in software development, ATM wants to achieve a significant position on that market. Adding application software to the ATM offer will enable the company to provide an end-to-end service combining system integration, application software, and telecommunications services. This should result in a significant increase of revenues in this area as soon as in 2007.



 
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