Adroit Infotech Ltd has signed a non-binding agreement to acquire a majority stake in Croatia-based Verso Altima Group. The deal, aimed at bolstering SAP BRIM and telecom infrastructure services, is expected to boost the company’s consolidated revenue to approximately Rs 225-250 crore. Adroit plans to fund the acquisition through internal accruals and capital raises, specifically excluding third-party debt. Investors should watch for the definitive agreement and regulatory clearances.
Adroit Infotech Targets European Growth with Verso Altima Acquisition
Adroit Infotech has announced a non-binding agreement to acquire a majority stake in Zagreb-based Verso Altima Group.
The deal aims to combine Verso Altima's European presence with Adroit’s technical expertise to target a $23-25 million (approx. Rs 225-250 crore) revenue milestone.
Reader Takeaway: Expansion into European markets targets higher margins but requires navigating due diligence and upcoming shareholder dilution.
What just happened
Adroit Infotech is set to acquire a majority equity stake in Verso Altima Group D.O.O., a business integrator specializing in IT services and telecom infrastructure. The transaction is currently in the non-binding stage. Upon completion, Adroit plans to unify the target's European consulting capabilities with its existing Indian subsidiary, Verso Altima India Limited, to enhance service delivery.
Why this matters
This move positions Adroit Infotech to enter the Continental European market, diversifying its reach beyond SAP services. By leveraging a hybrid on-site and offshore delivery model, the firm expects to improve resource utilization and boost profitability. The combined entity will focus on high-growth sectors like IoT, advanced networking, and telecom infrastructure.
Funding Structure
The company confirmed it will avoid third-party debt to finance this acquisition. Instead, capital will be sourced through a mix of internal accruals, a preferential issue, and a rights issue. While this avoids interest burdens, shareholders should prepare for equity dilution as the terms for these issues are finalized.
Risks to watch
As a non-binding agreement, the deal is subject to the successful execution of definitive Share Purchase Agreements (SPA). Key risks include the outcome of comprehensive legal and financial due diligence and the timeline for regulatory approvals in both India and Croatia. Additionally, the planned capital raise via preferential and rights issues will alter the company’s current shareholding structure.
What to track next
Investors should monitor official BSE filings for the signing of the definitive agreement, the final pricing and size of the proposed equity issues, and any updates regarding the completion of due diligence and regulatory clearances.