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News  
ATM S.A. enters the public administration solutions market
28.03.2007

ATM S.A., an ICT company listed at the Warsaw Stock Exchange, acquired a 60% share in Sputnik Software sp. z o.o., a developer of software for the public administration sector.

"Sputnik Software is a small, but extremely well-organized company," said Roman Szwed, president of the management board at ATM S.A. "It delivers software that matches the needs of public institutions perfectly. Its products are based on a technology that ATM uses itself. Sputnik Software’s board sees great opportunities in cooperating with ATM. On the whole, the company integrates seamlessly with the plans of developing our group. Acquiring the shares of Sputnik Software gives the group new possibilities for playing a significant role in the market of ITC services for the public administration sector."

"Sputnik employs talented programmers who will complement our existing team," added Witold Grzesik, software development director at ATM S.A. "It will allow us to significantly cut down on R&D costs, especially concerning Microsoft solutions. Additionally, the company has created its own production methodology, SputnikAgile, which we are considering for usage at ATM."

Sputnik Software has seen its sales revenue grow steadily and enjoys high profitability. According to early estimations, last year the company’s sales revenue was PLN 2.35 million, which translated into ca. PLN 0.5 million of net income.

Expanding the offer for public administration institutions becomes especially important in the light of the fact that growth in IT systems spending by the sector in the period of 2007-2013 is estimated at billions of PLN. By strengthening the position of Sputnik Software sp. z o.o. and expanding its own software development capabilities, ATM plans to become a serious player in this market. Complementing ATM’s offer with applications will allow the company to provide a complete service including system integration, applications, and telecommunication services. This should increase revenues considerably even in 2007.

ATM’s acquiring of a 60% share in Sputnik Software is a result of an investment agreement signed on January 26th, 2007. The shares were sold by natural persons, i.e., current shareholders of Sputnik Software. They were purchased for PLN 3 million. The payment will be made in cash within 14 days of the purchase. It will come from the issuers own funds.

ATM will benefit from the operation by extending the group’s product portfolio. Above all, it will enter the public administration software market (especially local government institutions), in which the company’s activities were limited so far. The market holds great opportunities because of the sector’s large needs and the availability of EU aid. The agreement is also very significant for Sputnik Software, because of the financial and technological support the company will receive from ATM. This will allow it to tender for larger, more difficult contracts.



 
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