Release of 25.05.2022

A1 Telekom Austria Group Announces 100% Acquisition of STEMO, a Bulgarian ICT Company

With the acquisition of STEMO, one of the largest Bulgarian ICT companies, A1 Telekom Austria Group has continued to pursue its strategy, by expanding its scope through targeted, value-enhancing acquisitions. Continuous growth guarantees A1 Telekom Austria Group to become an even more relevant player in the CEE area.

STEMO is a market leader in information and communication technologies on the Bulgarian market and with its expertise and track record will support A1 Telekom Austria Group successfully by shaping another pillar of the Group´s strategy - the digital transformation as a key criterion in the future success of A1 Telekom Austria Group and thus a crucial strategic issue. With this acquisition, A1 Bulgaria will become the ICT market leader in the country and with its 30-year experience, well-developed network, and expert team, STEMO will work in cooperation with A1 Bulgaria to further improve and expand its integrated IT business solutions for corporate clients. The collaboration in the field of system integration, IT infrastructure, connectivity, cyber security and video surveillance will lead to substantial synergies and growth opportunities, which will result in additional benefits for the users of ICT solutions.

“The acquisition of STEMO will contribute for the expansion of our share on the ICT business solutions market. Ultimately, the addition of STEMO to A1’s family will help our common goal – to solve the challenges which our corporate clients face with the help of the new technologies in the most quick and efficient manner possible. The deal is a natural step in the development of our IT expertise, and it will allow us to offer more complex technological solutions to private, public and government entities, no matter of their industry or size. I believe that our experience in Software as a Service, Infrastructure as a Service and cyber security, combined with STEMO’s expertise will lead to development of the whole market of ICT solutions in the country”, said Alexander Dimitrov, Chairman of the Management Board and CEO of A1 Bulgaria.

“STEMO has a 31-year history on the market, and we have always been amongst the leading IT companies in the country. We are proud with the skills and the professionalism of our employees, with whom we are working for so many years. The deal with A1 Group will allow us to better utilize our capabilities and to offer IT solutions to more international clients. I am sure that the cooperation will improve the level of technological development of Bulgaria”, said Georgi Tihov, Co-founder and CEO of STEMO.

А1 Bulgaria, one of seven subsidiaries of A1 Telekom Austria Group, is a leading provider of business ICT and NB-IoT solutions on the Bulgarian market, offering the full scope of services - from software to hardware and system integration. The company has its own SAP Competence Center and two Data Centers. Among its partners are leading high-tech companies like Cisco, Dell, IBM, f5, Acronis.

STEMO has developed a complete portfolio of ICT services, including system integration, cloud and managed services, software development and customer support. The company is a local partner of many international technology companies like HP, Microsoft and SAP, and has implemented a number of projects in the field of system integration and IT solutions in the private and public sector.

Following the acquisition, STEMO will continue its autonomous operations benefiting from the international know-how, financial resources, technical infrastructure, sales force, and customer base of its new owner A1 Bulgaria.

A1 will finance the transaction via existing cash flow. The transaction is subject to merger control clearance. As agreed between the parties, details regarding the purchase price will not be released.


About A1 Telekom Austria Group
A1 Telekom Austria Group, listed on the Vienna Stock Exchange, is a leading provider of digital services and communications solutions in Central and Eastern Europe with around 26 million customers, currently operating in seven countries under the brand A1: Austria, Bulgaria, Croatia, Belarus, Slovenia, the Republic of North Macedonia and the Republic of Serbia.

Offering communications, payment and entertainment services as well as integrated business solutions, A1 Telekom Austria Group achieved revenues of 4.75 billion Euros by year end 2021. Around 18,000 employees and state of the art broadband infrastructure make digital business and lifestyle possible and enable people, companies and things to connect everywhere anytime. As European unit of América Móvil, one of the largest wireless services provider in the world, A1 Telekom Austria Group is headquartered in Vienna and gives access to global solutions.

www.A1.group