Infovide-Matrix`s Capital Group has been enlarged by DahliaMatic

Infovide-Matrix, a leading supplier of consulting and innovative IT solutions, takes over 60% of shares in DahliaMatic, for PLN 20 million. The company specializes in delivering management support solutions. Infovide-Matrix will finance the acquisition with the capital gained from IPO as well as its own resources.

“This transaction is yet another step in carrying out Infovide-Matrix’s strategy which assumes systematic enlargement of the Capital Group aiming at the strengthening of the competences in the Group’s key areas. This time it is DahliaMatic which is joining our ranks. The firm distinguishes itself with high competences in management support solutions and radically increases Infovide-Matrix’s potential within the range of enterprises’ and public institutions’ modernization services”. – says Marek Kobiałka, President of the Board, Infovide-Matrix.

The company’s profile

DahliaMatic specializes in Oracle applications implementation orientated to support the management of commercial enterprises and state administration sector (possesses Oracle Certified Partner status).

The DahliaMatic’s team consists of 65 consultants. The company has been operating in the Polish market since 2003. The projects realized by the firm embrace directly, or through sub-contract services for its partners, the following circle of clients: Agencja Rozwoju i Modernizacji Rolnictwa, Toyota Motor Poland, Fagor-MasterCook, Toshiba, PBG, Ceramika Nowa Gala, PAŻP, Konex, Ruch, Ministerstwo Finansów, UFG, AEGON.

DahliaMatic’s offer comprises:

• Implementation services within Oracle E-Business Suite and Business Intelligence solutions and Oracle data warehousing (including project implementation management),
• Programming services (adjusting Oracle solutions to the clients’ specific needs, development of own additions to the Oracle E-Business Suite),
• Consulting services related to streamlining the operational functioning of enterprises, which support the managements in fulfilling anticipated business goals.

“DahliaMatic, specializing in services based on Oracle applications, has worked out high competences and strong references especially in industry, services and public administration sectors. The range of management support services in enterprises and institutions has always been intensely developed at Infovide-Matrix. DahliaMatic, thanks to its business model, excellently matches our growth plans.” – says Borys Stokalski, Vice-President of the Board, Infovide-Matrix.

Financial results

In 2007 DahliaMatic reached revenue of PLN 11.44m, and net profit of PLN 2m. In the following year the company is planning to achieve PLN 14m of revenue and PLN 4m of net profit.

The company is able to realize projects with high profitability because of its business model. With net profit exceeding PLN 2m in 2007 the net margin just equaled 18 percent.

“Close relationship with Infovide-Matrix supports us in realizing planned growth pace thanks to the synergy effect as well as possibility to offer our services to the wide spectrum of the Group’s clients. Complementary culture of both organizations guarantees smooth and client-satisfaction-oriented co-operation. Complementary portfolio of products and services in combination with our ability to understand business requirements will facilitate the support of our clients in full spectrum of their needs.” Said Lech Marcinkowski, Vice-President of the Board, DahliaMatic.

Detailed forecast of DahliaMatic (in million PLN):

The transaction’s structure

• Purchase of shares comprising 60% of capital, for PLN 20m
• Possibility of extra pay related to the amount of net profit earned in 2008
• Possibility of purchasing the remaining 40% of shares in 2009-2012, depending on the realization of business plans of the net profit growth made in 2007-2011.

“DahliaMatic’s acquisition is yet another step in carrying out Infovide-Matrix’s issuing goals. It’s worth saying that this transaction has been conducted with very propitious for Infovide-Matrix indications and, at the same time, it secures the interests of DahliaMatic’s shareholders.” Adds Jacek Królik, Vice-President of the Board, Infovide-Matrix.