Clifford Chance's Prague office has advised KKCG Investments AG on the acquisition of a majority stake in AutoCont Group, the largest supplier of information and communication technologies in the Czech Republic and Slovakia. Clifford Chance also advised on the financing of the transaction. Velisek & Podpera advised the sellers on the deal. Financial details were not disclosed.
KKCG's investment equates to a 70 percent stake in AutoCont, with the remaining 30 percent share remaining with the original owners of the company, including its five founders. In 2016 AutoCont reported sales of around CZK 4 billion (approximately EUR 150 million) and operating profit before depreciation exceeded CZK 200 million (approximately EUR 7.5 million).
According to Clifford Chance, "the acquisition of AutoCont will allow KKCG to strengthen its digital business and expand further in this industry sector in Central Europe. KKCG's current holdings in the technology sector include data centers DataSring and SafeDX, a joint venture with Foxconn. It also manages start-up fund Springtide Ventures."
The Clifford Chance team was led by Senior Associate Michal Jasek, supported mainly by Junior Associates Jakub Vesely and Tomas Prochazka. Prague-based Partner David Kolacek supervised the team. Financing aspects were managed by Partner Milos Felgr, who was primarily assisted by Associate Dominik Vojta.
The closing of the transaction is subject to the approval of the Czech Competition Office and is expected to take place by the end of the year.
The Velisek & Podpera team consisted of Partner Dan Podpera and Senior Associates Ondrej Solc, and Jan Zahradnicek.