AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, announces the successful completion of its capital increase operation on July 10, 2024, through which it raised 28.7 million euros. The process consisted of two stages - the first, in which existing shareholders subscribed on the basis of preference rights, and the second, in which new local and international institutional investors subscribed in a private placement. The final price per share for both stages was set at 0.82 lei.

“We are delighted with the success of this capital increase, which allows us to continue our ambitious growth strategy through M&A and international expansion. The high interest from institutional investors demonstrates their confidence in our vision and ability to develop and strengthen AROBS' position in global markets. The sector in which we operate, IT&C, is playing a crucial role in the transformation and modernization of industries globally and I firmly believe that AROBS is well-positioned to be part of this change. As such, the funds raised will help further our investment in research and development, through which we aim to bring to market innovative solutions that improve efficiency and drive business growth. Our teams are geared up to capitalize on the opportunities offered by new emerging technologies, as well as through the strategic partnerships we are considering globally. We are confident that, through our vision and with the support of investors, we will continue to grow and innovate, bringing added value", stated Voicu Oprean, founder and CEO of AROBS.

Due to significant interest from institutional investors in the private placement, the offer was supplemented with existing shares. Thus, during the offering, a total of 174,258,721 new shares were sold, together with 56,546,000 existing shares offered for sale by the majority shareholder, Voicu Oprean, directly and through Cabrio Investments. This supplementation of the offering with existing shares was also made in order to increase the free float of the company.

The AROBS capital increase attracted 8 local and international institutional investors, who subscribed to more than 96% of the shares offered in the transaction. Thus, the operation being finalized today is the largest capital increase for a public company in the IT sector and the first capital increase of a company in this industry where institutional investors subscribed a significant majority of the capital. Following this transaction, Voicu Oprean holds 50.6329% of the company's share capital.

The raised capital will support the continuation of AROBS' growth strategy through acquisitions and organic growth. Thus, the amounts raised in the capital increase, together with other potential sources of financing, will be used to develop and consolidate the group.

AROBS will use the funds raised to acquire companies that demonstrate synergies and are easy to integrate into its culture, with a robust customer portfolio and strong EBITDA, and expand in Europe, North America, and Asia. A small portion of the funds will be used for working capital to support organic growth as well as to generate new greenfield products/solutions.

AROBS is currently analyzing several potential acquisition targets, with an aggregate turnover of approximately 18.4 million euros and an approximate EBITDA margin for 2023 in line with that of the group. The target companies operate in software services, fleet management software products and business solutions. The target geographies are Romania, Germany, Austria, Switzerland, Switzerland, Turkey, the UK, and Serbia.

This was the second share capital increase by AROBS on the Bucharest Stock Exchange and the first after the transfer of its shares to the Main Market on September 25, 2023. The first private placement, in October 2021, amounted to approximately 15 million euros and attracted predominantly retail investors. Following the 2021 capital raising, AROBS has made 10 acquisitions to date.

The share capital increase was intermediated by BT Capital Partners. Filip & Co acted as legal advisor to AROBS.

About AROBS Transilvania Software

AROBS Transilvania Software provides software services and solutions in various industries, having approximately 70 partners of the Software Services business line located in Europe and America and more than 11.000 clients of the Software Products business lines from Europe and Asia. AROBS is present in 11 locations in Romania and nine abroad, and over 1.300 AROBS specialists build solutions for the future in embedded - Automotive, Aerospace, Maritime, and Medical - as well as Travel Technology, IoT, Clinical Trials, Fintech, Enterprise Solutions, Cybersecurity, and Intelligent Automation.

More about the AROBS group: www.arobs.com and www.arobsgrup.ro.

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*This is a Press release.