The structural changes have been already carried out, and the parent company of the Synergon Group, Synergon Informatics Plc. continues operating in a holding structure and expands through acquisitions – informed the press the board of the company.
Chairman Zoltán Jeszenszky said that the construction of the holding structure was executed well and based on the results of the first quarter of the year, it is definitely considered as being successful. The financial indicators of the company were showing the numbers the management expected, and this fact will be reinforced by the periodic financial statement to be issued in late November – pointed out Jeszenszky. Synergon eliminated the overlaps in the tasks within the Group, and reorganized the tasks and departments in a new, “Lego-like” manner in order to fit those that belong together. The unnecessary parts were also eliminated such as the foreign affiliates like the Czech Infinity a.s.
The continuing activities were outsourced to the subsidiaries, and the parent company operates as a holding company. Selling its foreign subsidiaries does not mean the end of the company’s regional expansion plans, it only means a change in the expansion strategy – stated Jeszenszky. On the future plans of Synergon CEO Zoltán Jutasi said that the Group – adjusting to the changes on the IT market – will shift its profile to become a public utility service provider, providing outsourcing, data management, data park operational and cloud-based services to clients.
The CEO is on the opinion that the Hungarian IT sector is saturated, and there are too many companies fighting for unique projects. The companies in this sector are fighting for survival, while the number of projects, where the client requires customized services is declining. The trend shows that potential clients rather outsource their IT-related activities and rent them if possible. Jutasi backed his argument of expanding with acquisitions with the saturated market.
He said that selling the Czech Infinity provided enough capital for financing the planned acquisitions, and selling part of the Synergon shares is also planned to provide additional resources for this purpose. However, Jutasi emphasised that the issuance of shares is not primarily for financing the acquisitions. Currently Synergon is in advanced stages in the negotiation processes with more than 20 companies, among which we can also find businesses in the telecom sector – added Jutasi.