Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, announces the second M&A transaction this year by signing the contract for the complete takeover of 2Net Computer SRL (2Net), a local company specialized in IT&C equipment, solutions and services.
The transaction is subject to approval by the Competition Council. To the extent that it is completed, 2Net will be wholly owned by Dendrio Solutions. It will be integrated into the “Cloud & Infrastructure” business group within the Bittnet Group Technology Division.
“We are delighted that our M&A projects are ongoing and that two weeks after the last announced transaction – Top Tech, we have already managed to sign the next one. 2Net joins Dendrio, both companies being similar in terms of their activity. Once the transaction is completed, we will consolidate our presence in the central area of Romania, and we will have access to international clients operating in the counties of Brașov, Covasna and Harghita. 2Net is a company with solid financial results and professional management, with over 25 years of experience in the IT&C field. We welcome our new colleagues to our team and look forward to working together to develop the group further,” stated Mihai Logofătu, CEO of Bittnet Group.
2Net is a Romanian IT&C company founded 25 years ago in Brașov by entrepreneur Gheorghe (George) Tomescu. The company is specialized in providing products, solutions, and technologies, integrated IT&C services, voice networks, data & control access. The products, solutions, and services offered by 2Net are delivered to corporations and SMEs and also to retail through its own 2Net stores in Brașov and Sf. Gheorghe. The company has partnerships concluded with the most important IT&C vendors such as Cisco, Microsoft, HP Inc., Dell EMC, HPE, Lenovo, Apple, Asus, Fortinet, Bitdefender, Eset, Kyocera, Canon, Rittal, APC etc. Currently, 2Net has 24 employees and a strong presence in Brașov, Harghita, and Covasna counties. Following this transaction, Dendrio strengthens its presence in Transylvania, considering the acquisition of TopTech in March, which also has a strong activity in Transylvania, in Cluj, Sibiu, Alba, and Hunedoara counties. Dendrio also strengthens its expertise through the mentioned key vendors through this transaction.
“Today’s transaction marks an important milestone for 2Net. The investment made by Dendrio opens new development opportunities for the company because having next to us a significant player in the IT&C sector, we will be able to better and more efficiently manage the growing demands of our clients in the central region in which we operate. I am also confident that our team will add value to the projects that Dendrio is planning to implement in the coming years, and implicitly we will contribute to the business growth of the Bittnet Group,” stated Gheorghe Tomescu, founder and Executive Manager of 2Net.
Gheorghe Tomescu will remain involved in the 2Net activity for at least a year to complete the transition process.
The announced transaction value is estimated at 6,3 million lei and will be subject to the usual adjustments for this type of transaction. The acquisition of 2Net is made entirely by Dendrio, which will take over also a shareholding loan worth 1.2 million lei. The transaction is part of Bittnet Group’s expansion and consolidation plan through M&A transactions, through which the group aims to consolidate its presence both in the classic IT&C integration activity and in the cybersecurity area.
Regarding the financial results of 2Net, in 2021, the company recorded total revenues of 25 million lei, an estimated EBITDA of 2 million lei, and a net profit of 1.4 million lei. Upon completion of the transaction, the 2Net team will be integrated into the “Cloud & Infrastructure” business group within the Technology Division of the Bittnet Group. Thus, the growth potential of the “Cloud & Infrastructure” segment is significant with the addition of the two new companies. Although the financial statements of TopTech and 2Net are not consolidated in the results of Bittnet Group for 2021, the total revenues, together with Dendrio, amount to approximately 170 million lei, EBITDA of 11 million, and a net profit of 6 million lei.
The transaction was facilitated by Kogaion Investments, which provided M&A consulting services to the buyer and coordinated the transaction process. The Kogaion Investments team, led by Adinel Tudor, assisted Bittnet Group in all local market transactions carried out by the group in 2021. The local M&A consulting boutique has over ten years of experience in the field, during this period being involved in transactions with a total value of over 200 million euros.