Information on the Target

Advance Capital Partners has established a strategic partnership with Mikrocop, one of Slovenia's oldest and most successful IT companies. Upon fulfilling the condition precedents and obtaining necessary approvals from competition protection agencies, the fund managed by Advance Capital Partners will acquire ownership of Mikrocop, which specializes in digitizing medium and large organizations operating in highly regulated sectors. The transaction is expected to conclude by the end of 2025.

Mikrocop, founded in 1976 by Ljubo Koritnik as a service company for microfilm equipment, shifted focus to digital transformation in the 1990s. The company has been recognized as a pioneer in digitization within Slovenia, introducing cloud e-storage as early as 2005 and establishing one of the largest private data centers in the country four years later. Currently, Mikrocop is a leading IT service company in Slovenia, specializing in business process automation and legally compliant electronic storage solutions.

Industry Overview in Slovenia

The Slovenian IT industry has shown remarkable growth over the past few decades, largely influenced by the increasing demand for digital solutions across various sectors. Factors such as regulatory changes, competitive pressures, and the necessity for modernization have prompted many organizations to seek digitalization for operational efficiency.

Furthermore, the adoption of cloud computing solutions has become integral for businesses aiming for flexibility and scalability. Companies in Slovenia have keenly recognized this trend, aligning their services towards cloud-based offerings. By 2030, it is projected that cloud solutions will dominate the IT landscape in the region.

Key players in the market have been tasked with adapting to evolving technologies, including artificial intelligence, which presents significant opportunities to enhance customer experiences and drive operational efficiency. The increasing complexity of security and regulatory requirements also underscores the importance of reliable IT solutions in Slovenia.

Overall, the Slovenian IT sector is poised for sustained growth, driven by innovation and a strong emphasis on embracing technological advancements that cater to market demands.

The Rationale Behind the Deal

The partnership between Advance Capital Partners and Mikrocop is strategically oriented towards enhancing investment in the IT sector, which is a primary focus for the fund. Advance Capital Partners aims to strengthen its portfolio through Mikrocop, which is already poised for expansion, particularly with its previous ventures in Croatia and Bosnia and Herzegovina.

The agreement anticipates an initial acquisition of an 80% stake in the company, with plans to increase ownership to 100% by 2027. This acquisition allows Advance Capital Partners to further develop its IT investments under the Aeon Digital Group umbrella, capitalizing on Mikrocop's established reputation and market insights.

Information About the Investor

Advance Capital Partners is a private equity fund management company specializing in investments across various sectors. To date, the firm has successfully executed over 30 acquisitions and mergers in the region, driven by a clear strategic vision tailored for each investment.

The company raises capital with the goal of transforming its portfolio companies into key players in the Adriatic region, utilizing expertise and active partnership with current owners and management. Their current private equity fund has amassed 198 million euros, making it the largest in the region, focusing on sectors such as energy, IT, healthcare, and more.

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The strategic partnership between Advance Capital Partners and Mikrocop appears to be a solid investment move. With Mikrocop's strong market position and consistent growth trajectory, the likelihood of achieving significant returns on investment seems promising.

The transition towards cloud computing and the rising importance of digitization in Slovenia further supports the rationale behind this partnership. The demand for reliable and innovative IT solutions is expected to continue rising, which could increase Mikrocop's market share and profitability.

Moreover, Advance Capital Partners' track record in managing successful investments bodes well for the future development of Mikrocop. Their approach towards actively engaging with management teams ensures that strategic initiatives are well-executed, enabling the company to capitalize on emerging market opportunities.

In conclusion, this strategic acquisition not only bolsters the capabilities of Advance Capital Partners in the IT sector but also significantly enhances Mikrocop's potential for expansion across the Adriatic region, making it a potentially lucrative investment.

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