The Prosperus Growth private equity fund achieved a strategic partnership with Neos, an IT company specialized in the most advanced information technology solutions. With the significant investment in Neos, Prosperus Growth gained the majority stake in the company and confirmed its dedication to investing in leading IT solutions providers and high-tech companies as one of the main directions in fund development.
Neos is a Croatian company headquartered in Zagreb that offers business solutions and Data Analytics, Rapid Application Development, System Infrastructure, and Cloud Integration services. Neos has been cooperating with the leading companies from various industries for almost 20 years with an emphasis on financial services, telecommunications, and the public sector. In 2020, Neos generated 63.1 million HRK of revenue, with an EBITDA of 14.5 million HRK, and an EBITDA margin higher than 22 percent.
This investment represents the second outreach of the Prosperus Technology Group platform into cloud management and business analytics. Prosperus Growth has invested in two high-tech IT companies, now Neos, and previously in SV Group. The two companies’ combined revenue for 2020 would equal 106 million HRK, with HRK 20.6 million HRK in EBITDA. The development of the Prosperus Technology Group platform is expected to continue through organic growth and further acquisitions.
“Through a strategic partnership with Neos, we’ve confirmed Prosperus Growth fund orientation towards successful IT companies that have superb know-how at their disposal and whose owners are on the lookout for partners to upgrade their business. We are convinced Neos will achieve significant revenue growth while maintaining the ideal EBITDA margin to the satisfaction of all our partners and investors”, said Joško Miliša, President of the Management Board at PROSPERUS-INVEST, the company that manages Prosperus Growth fund.
„I am convinced that Neos' new partnership with the Prosperus Growth Fund will bring a synergic effect of the knowledge we bring from the IT perspective and the one that PROSPERUS-INVEST brings from the perspective of the investment management company. Business development, portfolio and customer base expansion are our goals, and that is why we have recognized Prosperus Growth as a strategic partner. Ensuring business continuity as well as the personal development of our employees and their education in latest concepts and technologies application are the foundations of our business”, stated Davorin Capan, CEO at Neos.
The Prosperus Growth private equity fund has more than 59 million euros to invest, and that is a significant development for the Croatian financial market. The European Investment Fund (EIF) and the Croatian Bank for Reconstruction and Development (HBOR) have supported the fund through the CROGIP program, making a 49,99% of the total fund capital investment.
The fund and the company that manages it are headquartered in Croatia, with over half of the capital collected from institutional investors in the domestic market. The fund is obliged to invest at least 75 percent of the capital in companies from Croatia, and the rest can be invested in the companies from the region. The Prosperus Growth fund strategy is to invest in medium and small enterprises and businesses that have the status of medium-capitalization companies with consolidation potential in the region, and the planned value range of each investment is between 5 and 10 million euros. The fund is oriented toward companies that have growth potential, especially those that have unique or differentiated products and services suitable for maintaining a competitive advantage and gaining significant market shares.