Investment in information technology businesses company INVL Technology acquired 100 per cent of shares in Estonian IT company Andmevara from Estonian Ministry of the Interior for EUR 664.6 thousand.
Before the transaction, Estonian state paid out EUR 1.25 million in dividends and related taxes.
"We are pleased that Andmevara has new respectable owners and we wish them all the best" said Riho Kuppart, deputy secretary general of Ministry of the Interior.
A significant part of Andmevara's business (processing of Estonian Population Registry) was spun-off from the Company in the beginning of 2016 and is not a part of the acquisition. Company's revenue in 2015 (before the spin-off) was EUR 3.433 million and net profit amounted to EUR 348 thousand.
"We will seek to ensure that the Company operates profitably after successfully substituting the spun-off part of the business with new services. We believe that the Company has a lot of potential and that with the support of INVL Technology it will become even more capable to serve current customers, offer new services and expand internationally", commented the director of INVL Technology Kazimieras Tonkunas.
Andmevara is a complex IT solutions and services provider to public sector organisations with expertise in e-Government solutions that include development of registries, important national information systems and software, digitisation, database development and hosting services. The Company was formed in 1997 based on a former governmental organisation Riigiarvutuskeskus, the history of which dates back to 1970.
Andmevara actively contributes to implementation of Estonian E-Government project, offers several ready-made software products to municipal and governmental institutions, and mostly serves Estonian public sector organisations. From 2002 until 2015, the Company processed the Estonian Population Registry, which was transferred to the Ministry of the Interior IT and Development Centre (SMIT) in 2016, as a part of the effort to consolidate certain IT functions of the State.
Andmevara has a subsidiary company in Moldova.
INVL Technology operates as a cluster of B2B- and B2G-oriented IT businesses with a focus in four key areas: business climate improvement and e-governance, IT infrastructure, cyber security and IT intensive industries' solutions.
The largest INVL Technology investments currently are companies in Lithuania, Norway, Tanzania, Uganda and Rwanda: Norway Registers Development AS with subsidiaries NRD UAB, ETRONIKA UAB, Norway Registers Development East Africa Ltd, Norway Registers Development Rwanda Ltd and Infobank Uganda Ltd, BAIP UAB with subsidiary Acena UAB, NRD CS UAB and Algoritmu Sistemos UAB.