Orange Poland broke the news about its plans to purchase Craftware, a CRM specialist firm, to fortify its B2B operations and open opportunities to the rapidly growing CRM solutions market.
The business value of Craftware is expected to be close to PLN 110 million and PLN 87 million is paid upon signing the agreement. The outstanding amount will be cleared before the end of 2024 on fulfillment of certain financial targets at Craftware in 2021, 2022, and other conditions.
The mode of funding
Orange Poland will finance the purchase from its cash and available financing options. Another essential aspect of the deal is that it does not require any regulatory approvals.
The outcome of the acquisition
The purchase deal is another step affecting Orange Poland’s strategy to expand and develop its capabilities in the business market with more value-added ICT (Information and Communication Technology) services to meet increasing demand from business customers for digital transformation.
Before Craftware, Orange Poland acquired Bluesoft, a custom software development company headquartered in Poland.
On the revenue front, Orange Poland in 2019 generated PLN 731 million of ICT revenues and recorded an increase of 31 percent year-on-year.
Craftware, operating since 2009, works toward analysis, design, and implementation of CRM (customer relationship management) systems. The company also has a rich experience in implementing and integrating connected CRMs and is an expert in the Salesforce platform.
On the business front, the Craftware customer list includes blue-chip companies from a variety of industries such as FMCG (fast-moving consumer goods), pharma, retail, and finance. In the 12 months ending in June, Craftware generated an impressive PLN 63 million of revenues and PLN 16 million of EBITDA, i.e., earnings before interest, taxes, depreciation, and amortization.