Estonia, Legislation, Lithuania, Mergers and take-overs, Technology

Financial advisor of the transaction Redgate Capital announced the decision of the Estonian Ministry of Interior on March 30, 2016.

The transaction is expected to be completed in April, once the share acquisition agreement is signed. The value of the deal depends on the amount of dividends paid out to the Estonian state and will be announced after the acquisition is completed.

"After official confirmation of the tender results the share purchase agreement will be prepared. We are planning to sign the agreement in April and after that Andmevara AS will continue as a private company," said Riho Kuppart, deputy secretary general of the Estonian Ministry of the Interior.

"As the long-term authorized processor of one of the most important state databases, the Estonian Population Registry, and a developer of many other critical national information systems, Andmevara has been on the forefront of the Estonian e-Government project. 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.

In 2015, Andmevara posted sales of 3.2 million euros and a net profit of 362,000 euros. The government decided earlier this month to take one million euros as dividend out of the company. Thus, the remaining money for the dividend, 638,000 euros, will be taken from the retained earnings of previous periods. Andmevara paid 550,000 euros to the state as dividend in 2015.