And a bit more18 Nov 2010 15:07
http://uk.reuters.com/article/idUKLDE6820TT20100903
UPDATE 2-Asseco to buy 51 pct of Israel's Formula Systems
Fri Sep 3, 2010 2:29pm BST
* To pay up to $145 mln for the stake
* Deal to be completed by end of Nov
* Asseco shares fell 0.2 pct to 55 zlotys, index up 0.62 pct
* Emblaze shares up 15.5 pct at 53.7 p, index up 1.2 pct
(Adds further details, Emblaze shares)
WARSAW, Sept 3 (Reuters) - Asseco Poland ACPP.WA, Europe's number five software group, agreed to buy a 51 percent stake in Israeli IT firm Formula Systems (FORT.TA) from Emblaze Ltd (EBLZ.L) to expand into new markets, the Polish group said on Friday.
The deal, worth up to $145 million, follows Asseco's buying spree locally and around Europe, which it used to more than double sales to nearly $1 billion in two years.
Formula Systems provides IT services and proprietary software in several markets, including Israel, Canada, Japan and the United States.
Emblaze, which bought its stake in the company in 2006, said it could not turn down an approach at a 43 percent premium to Formula's current market price, despite being satisfied with the company's performance.
Shares in Emblaze, an Israeli firm listed in London, were 15.5 percent higher at 53.67 pence ($0.83) by 1254 GMT, having hit an orderbook high of 60 pence earlier. The FTSE All share index was up 1.22 percent.
Emblaze said it would report a capital gain of about $35 million on the sale, which it would invest in its business and use to take advantage of opportunities in the market.
Asseco said it would finance the deal with its own funds and from an existing credit line.
Shares in Asseco fell 0.18 percent to 55 zlotys, while Warsaw's main index .WIG20 was up 0.62 percent. The Polish group has a market capitalisation of 4.3 billion zlotys ($1.5 billion).
The company's increasingly diversified nature helped it weather the recent downturn. But concerns it would not deliver on lofty expectations longer term have pushed its shares 12 percent lower this year compared with a 3 percent rise on Warsaw's main index.
The deal will be completed after an approval by Emblaze shareholders, who will meet to discuss it before the end of November. (Reporting by Adrian Krajewski and Pawel Bernat in Warsaw and Paul Sandle in London; Editing by Sharon Lindores) ($1=2.879 Zloty) ($1=.6465 Pound)