The group of companies “Armada” attracted a credit of $ 16 million is the first tranche of funding under the line at $102 million, opened in the “People’s Savings Bank of Kazakhstan” and “NSC-Bank”. Involved funds planned to send to acquire highly companies in segments of software development and IT services.
“Despite the difficult situation in the debt market,” Armada “managed to attract funds for further implementation of our strategy, – said Dmitry Belik, chairman of the board of directors” ARMADA “. — We look forward to continuing the successful cooperation with “the NSC-Bank” and “People’s Savings Bank of Kazakhstan” and plan before the end of the year as approved by the full use of a credit line of $ 102 million, sending those funds for the acquisition “. According to Belika, is now “Armada” is in the final stage of negotiations on purchases with several companies before the end of the year and expects to announce new deals.
Credit received a term of 3 years with an interest rate of 15% per annum. These conditions in the company being viewed as advantageous. “There are cases involve loans with lower interest rate, but we understand that,” Armada “young company, which does not yet have a long credit history – told CNews Alexey Kuzovkin, general director of” ARMADA “. — One of the key arguments for creditors is that our company is public. By international standards, though, is considered to be reliable when the loan does not exceed the amount of EBITDA with a coefficient of four. In our case it just so. In addition, the loan size and determines the size of our purchases. All attracted funds to be directed to the absorption, leading to marked increases in income “ARMADA”, and thus further enhance its creditworthiness. We buy businesses, which grow no less than 30% a year, and the difference in the rate of 1-2% in credit in this case is not so critical for us “.
Terms of the agreement allow prematurely repay debt without paying commissions. “The company will be able to grow markedly refinance loan for better terms”, – Kuzovkin said. As repeatedly stated in the “Armada” before, the number of businesses are absorbing only vysokomarzhinalnye company specializing in software development, the provision of IT services. Individual companies are paying attention in the services segment to protect information. The new business will complement organic buying group.
Dmitry Belik (left) and Alexey Kuzovkin expect to announce new acquisitions before the end of the year.
Previously, “Armada” announced plans to implement before the end of 2007 ADR program to raise capitalization by attracting American investors. “Due to poor financial conditions accommodation had to be postponed, but we do not exclude these plans. By theme ADR we will return at the beginning of 2009 “, – told CNews Alexey Kuzovkin.
Analysts note that “Armada” plans to attract the largest M&A for the Russian IT-market credit. “We are talking about a very large credit – said Vladislav Kochetkov, analyst” Finama “. — In fact, the company has estimated value of almost 40% of its capitalisation “. Despite this, the strategy profile acquisitions of assets, according to experts, remains the most promising. Spending $ 102 million, “Armada” can be purchased assets from the revenue of at least $ 80 million “Given the high growth rates, net profit on new acquisitions may well allow absorbing interest on loans and increase revenue – believed in” Finame “. — Now, against the backdrop of liquidity crisis, among many IT companies, both in Russia and abroad, increased demand for money. This creates the preconditions for buying assets at attractive prices “.
Funds attracted some Russian IT firms in M & A and development biznesaKompaniya Amount Investor attract Goals
- “Armada” $ 102 million “People’s Savings Bank of Kazakhstan”, “NSC-Bank” The takeover of companies in the segment of software development and IT services
- Verysell $ 65 million Deutsche Bank, Hillside Apex Fund, Mint Capital, RP Explorer Fund, Renaissance pre-IPO, Steep Rock Capital takeover of Russian companies in the segment of system integration and consulting
- NCC $ 60 million “Alfa Bank” Financing of ongoing activities and development of production
- EPAM $ 50 million Renaissance Investment Management, Da Vinci Capital, Euroventures Capital Development of key competencies and infrastructure, training, strategic acquisitions
Recall that “Armada” has significant experience integrating acquisitions and new assets into the group. In July 2007, “Armada” became the first Russian IT company, published in the IPO. Funds from the placement were used to finance the transactions on Mergers and Acquisitions (M & A). Thus, in the course of the year, “Armada” composed of “Soyuzinform” (works in the field of IT outsourcing), PM Expert (Project Management) and ETS (the developer of electronic trading platforms). At the end of 2007 all these companies have shown good financial performance, substantially exceeding the assessment of management at the time of the purchases.[CNews]
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