One of the fastest developing and most successful subsidiaries of the Synergon Group, the Czech Infinity a.s. sought out acquisition targets in 2010 with the help of a consultant, in order to improve its efficiency through a possible acquisition. The management of the Company reviewed the possibilities of growth, and arrived at the conclusion that Infinity a.s. in its current size cannot reach a spectacular improvement of efficiency; the only competitors in the same sector that might operate with a higher margin are specialized in software products.

Out of the acquisition targets mapped up on the Czech information technology market, the executive management of Infinity found IT Systems a.s.—seated in the České Budějovice (South Bohemian region), with sites in Prague and Brno—to be the most suitable for a takeover bid.

The acquired company, which employs 60 persons and offers information technology solutions and related repair services, is engaged in the implementation of software applications, while its fields of service are Oracle database and developments, and Microsoft Dynamics AX capacities. The largest client of IT Systems is the mobile communication service provider O2 Telefonica.

Through the acquisition, utilizing the synergies between the two companies, Infinity earns new market opportunities in the South Bohemian region, thus its appearance in České Budějovice expands the circle of potential clients. The integration provides Infinity with capacities that are scarce on the Czech market, consequently, Infinity gains significant market benefit and will be unequalled on the market in terms of Oracle capacity.

As a result of the drastic operational changes completed in recent years and a well-formulated and –executed strategy, Infinity is capable of financing the acquisition partly from its own resources, while there is also possibility for drawing in bank capital.

The operating income of Infinity was 44 million HUF in the first three months of 2011, which is twice the amount of the corresponding result of 2010. The operating margin was 7%, surpassing the 5% result of 2010; the profit after tax was 33 million HUF. The company will significantly increase this performance following the acquisition, by means of new capacities and markets.

‘Infinity has clear vision of its next 3 years; with the successful acquisition, we follow the road of growth and development that we do not wish to leave. Even with the probable difficulties in mind, there are increasingly good possibilities in front of our company. I am not worried about the future of our Company, as all of our steps are preceded by thorough financial and business analyses; in connection with the acquisition and the coming integration, it seems to me that we will have enough energy and suitable resources for all the fields’, explained Jaroslav Prochazka, CEO of Infinity a.s., on occasion of the takeover of IT Systems.

‘Together with the management of Infinity, we repeatedly reviewed the possibilities offered by the Czech market and arrived at the conclusion that a growth of an order of magnitude was only possible through acquisition. Those acquisition targets in the Czech market were considered advantageous, which are capable of increasing the coverage of Infinity in the Czech Republic, and allow us to expand competencies through which we can reach accomplishments at international companies that have solid capital and significant solvent demand.

Of all the probable targets that we examined and where we can also utilize synergies, IT Systems a.s proved to be the best. I would like to take the occasion to pay my respect to Jaroslav Prochazka for having expanded Synergon Group with a team of marketable experts’, said Dr. Zoltán Jeszenszky, Chairman of the Board of Directors of Synergon.