Last week, the Bulgarian public company, Bianor Holding, made public their acquisition of Digital Lights, along with 51% of Prime Holding. The M&A deal, valued at €50M, brings the companies together under a new brand, Wiser Technology, with the intention of enhancing the performance of the merged entities. This strategic move follows the €6.8M investment in Bianor Holding by the Bulgarian private equity firm, BlackPeak Capital, which aims to support Bianor’s organic growth and focus on accelerating the company’s development through mergers and acquisitions. BlackPeak’s strategy is centred around fostering the growth of mature companies through M&A.
The pro forma consolidated revenue of Bianor, Prime, and Digital Lights over the past year reached €28M, with a combined team of over 500 software engineers, scientists, and consultants.
The broader picture shows that companies in Central and Eastern Europe (CEE) are increasingly adopting mergers and acquisitions as key strategies to gain competitive advantages, add value through synergies, and drive growth, global expansion, and competitiveness. While the Deloitte Report indicates a decline in M&A activity across Europe in 2023, Bulgaria stands out as one of the countries remaining stable to this trend, with several Bulgarian enterprises announcing M&A activities since the start of 2023.
The recent deal represents a merger of the companies already within Bianor Holding, alongside Prime Holding and Digital Lights. As a substantial portion of the transaction will be executed as a share swap, the founders and key shareholders of Prime Holding and Digital Lights will become significant stakeholders in Wiser Technology.
The companies within Wiser Technology will continue to operate largely independently within their existing structures, with the group centralizing corporate development, finance, marketing, and sales. Kosta Jordanov, co-founder and CEO of Bianor Holding, will serve as CEO of Wiser Technology and will remain on its Board of Directors. Dimitar Dimitrov, CEO of Digital Lights, and Georgi Sokolov, co-CEO of Prime Holding, will be nominated as members of the Board of Directors of Wiser Technology.
Wiser Technology is primarily targeting sectors such as telecommunications, automotive, aerospace, defence, and finance. Some of the group’s clients and project partners include Airbus, Leonardo, Indra, IBM, UniCredit, Nokia, and Bosch.
The merger has been facilitated by the Private Equity fund BlackPeak Capital, along with institutional investors Guarantee Fund, Advance Invest, Impulse Growth, and others.
The leads of Wiser Technology have expressed that this merger forms the foundation for further development, allowing for an expanded portfolio of clients and industries, enhanced technological capabilities, and increased scientific competence, enabling the company to deliver greater value to their customers and participate in more comprehensive and strategic projects.
The company’s strategy focuses on consolidating local talent and developing it into an enterprise capable of leveraging synergies among the three companies, creating a strong player in the IT industry originating from CEE.
One of the key priorities for Wiser would be building a stable brand and establishing it as a valuable asset for all stakeholders – customers, investors, and employees. The company also aims to organize and streamline the integration of all services and businesses now under its umbrella. Additionally, they are eyeing an expansion in Western Europe and the US through acquisitions and strategic partnerships. Their mid-term plans also include exploring a dual listing on a major global stock exchange to unlock access to a broader investor base. Finally, it’s important for Wiser to contribute to the local educational ecosystem by broadening and strengthening their involvement with science academies, universities, and high schools.