Arctic Stream and Data Core Systems form a strategic alliance in IT and Cybersecurity market

Arctic Stream, an IT infrastructure and security integrator listed on the Bucharest Stock Exchange (BVB) under the symbol AST, announces the signing of a memorandum of understanding regarding the transfer of 23% of Data Core Systems’ share capital, one of the top providers of cybersecurity services in Romania. The acquisition’s completion is expected in the third quarter of this year, following the conclusion of all due diligence procedures. Currently, the target market value of Data Core Systems is 43 million lei (approximately 8.65 million euros).

The transaction structure will include a cash component, from Arctic Stream’s reserves accumulated from previous years’ profits (as per the shareholder-approved strategy), AST shares, and bonus payments for meeting mutually agreed objectives.

Founded in 2012, Data Core Systems is a rapidly growing company, operationally and financially, in the continuously evolving cybersecurity services market, both in Romania and globally. The company reported revenues of 30.09 million lei (6.05 million euros) last year, up over 66% compared to 2020. For 2024, Data Core Systems anticipates revenues of 52.6 million lei (10.5 million euros) and an operational profit of 4.4 million lei.

“By signing this memorandum, we take the first step towards integrating the businesses of Arctic Stream and Data Core Systems into what will become the strongest technology hub in terms of IT solutions and cybersecurity services in Romania. Both companies possess extensive experience in complementary fields, top supplier certifications, a broad client portfolio across various sectors, but – above all – share the same values and business development perspectives. This is the beginning of a strategic partnership where, together, we will become one of the strongest players in the IT services market. To achieve this goal, we primarily rely on maintaining and enhancing our team’s quality,” stated Dragoș Diaconu, founder and General Manager of Arctic Stream.

“Data Core Systems is at a crucial expansion phase, compelling us to accelerate the development of our business domains through a strategic collaboration with Arctic Stream. This company, known for sharing our principles and visions, represents the ideal partner in this endeavor. We are deeply convinced that the diverse opportunities presented by the integrated IT solutions services market and the cybersecurity sector will allow us to highlight the added value of this synergy. This partnership will not only emphasize our differentiation in the market but will also provide our customers with an expanded portfolio of IT services and solutions, characterized by superior integration and an improved response capability. Therefore, we express our full confidence in this alliance’s potential to generate significant value for all involved stakeholders,” declared Cristian Manescu, General Manager of Data Core Systems.

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According to the representatives of the two companies, the priority for the coming months is operational collaboration, with financial aspects taking a secondary role. After achieving the initially agreed objectives, the potential listing of Data Core Systems on the Bucharest Stock Exchange will be considered.

Arctic Stream (listed on the Bucharest Stock Exchange under the symbol AST) is a fully Romanian-owned company, founded in 2017, with a service portfolio that includes: IT infrastructure assessment; consultancy; design, redesign, integration, and development of data and IT security infrastructure; project management, configuration, implementation, and migration of complex solutions; alongside post-implementation maintenance and operational support. The company has been a Cisco Certified Premier Partner since 2017, along with numerous other top global manufacturer certifications, maintaining partnerships with companies such as Cisco Systems, Dell, Fortinet, Netapp, Nutanix, Palo Alto, Recorded Future, Veeam, VMware, and Zscaler.

With over 11 years of experience, Data Core Systems is one of the most relevant players in Romania’s cybersecurity market, offering complete solutions and services for preventing, detecting, and responding to all types of cyber threats. The team holds over 120 top-level technical certifications and has partnerships with over 50 technology providers. The company’s clients include: the top 10 banks and the main utility providers in Romania, the top 5 large insurance companies in the CEE region, along with companies from telecom, manufacturing, media, retail, and other sectors.