Croatian company Prosperus Growth purchases Neos to strengthen its IT platform strategy
In a strategic move to bolster its IT platform strategy, the Croatian private equity fund Prosperus Growth has acquired a controlling interest in Neos, a leading provider of advanced IT solutions based in Zagreb. The €50.9m fund, raised through a private offering under the CROGIP programme, earmarks at least 75% of its capital for investments in Croatian companies [1][2].
Neos, known for its expertise in data analytics, rapid application development, cloud integration, and IT infrastructure, is expected to leverage this investment to scale its advanced IT solutions and expand its market presence. The acquisition aims to position Neos as a central platform company for IT services within the region, under Prosperus’s strategic vision [1].
Davorin Capan, a member of Neos's Management Board, believes the partnership with Prosperus Growth will bring a synergistic effect, aiding in business development, portfolio expansion, and customer base growth. Neos serves clients across various sectors, including financial services, telecommunications, and the public sector [1].
This acquisition marks the second investment under Prosperus Technology Group, the fund's platform dedicated to high-growth IT companies. In 2020, the combined revenue of Prosperus-backed companies surpassed HRK 106m, with an EBITDA of HRK 20.6m [1].
Joško Miliša, President of the Management Board at Prosperus-Invest, expressed confidence in Neos achieving significant revenue growth while maintaining the desired EBITDA margin. In 2020, Neos reported HRK 63.1m in revenue and HRK 14.5m in EBITDA, with an EBITDA margin above 22% [1].
The Prosperus Growth fund targets differentiated, growth-oriented businesses, with a focus on deals in the €5m to €10m range [1]. The remaining investments under the fund are expected to target regional opportunities, further strengthening Prosperus Growth's position in the Croatian market.
The European Investment Fund (EIF) and the Croatian Bank for Reconstruction and Development (HBOR) provided 49.99% of the fund's capital [1]. With this strategic acquisition, Prosperus Growth is poised to significantly expand its IT platform and capitalise on the growth opportunities in the region.
References: [1] https://www.prosperus.hr/news/prosperus-growth-invests-in-neos [2] https://www.croatiaweek.com/prosperus-growth-invests-in-neos-it-solutions-provider/
- The Prosperus Growth fund, which primarily focuses on deals in the €5m to €10m range, has made a strategic investment in Neos, a leading IT solutions provider based in Zagreb.
- With the acquisition, Neos is expected to use this investment to scale its advanced IT solutions and expand its market presence, positioning itself as a central platform company for IT services within the region.
- The €50.9m Prosperus Growth fund, raised through a private offering under the CROGIP programme, has earmarked at least 75% of its capital for investments in Croatian companies.
- Prosperus Technology Group, the fund's platform dedicated to high-growth IT companies, has made this acquisition, which marks the second investment under this group.
- The acquisition of Neos represents a significant step for Prosperus Growth, as it aims to significantly expand its IT platform and capitalize on the growth opportunities in the region.
