March 25, 2015

Polish IT firm Madkom is mulling the potential acquisition of a company that would give it access to the Western European markets, the CEO of the firm told EMIS.

"We are interested in further acquisitions, although we are not looking actively. Our acquisition activities are directed at diversification of our revenue sources. Looking at our portfolio, we lack a company which produces and sells software for the Western European markets," Grzegorz Szczechowiak said. He added that such a company could help Madkom swiftly introduce its products for the hotel and healthcare industries on these markets.

In mid-2015, the company plans to acquire a stake in a startup firm providing software for the healthcare sector. The funds for the investment will come from a new share issue the value of which is expected to come up to PLN 1mn, Szczechowiak said. "Madkom will acquire a minority stake in the firm," the executive explained.

Earlier this year, Madkom acquired a 51% stake in Cloud Industry Solutions, which specialises in producing software for the hotel industry.

Madkom entered the Warsaw Stock Exchange's alternative market NewConnect in August 2012. Although the company has earlier stated that it plans to move to the main floor of the bourse, Szczechowiak said that at the moment there is no such need and no such plans.

Established in 1999, Madkom reported a revenue of PLN 6.48mn and a net profit of PLN 79,000 in 2014. The company is specialised in developing document management systems and budgeting solutions for the e-government sector.