Subject:

Execution by indirect subsidiaries H88 HOSTING S.R.L. and Net Design S.R.L. of agreements to acquire shares in companies in Romania

Content:

Between 19.04.2019 and 17.05.2019, the Company’s indirect subsidiaries H88 Hosting S.R.L. with its registered office in Romania and Net Design S.R.L. with its registered office in Romania, as purchasers, entered into share sale agreements (the “Agreements”) with natural persons who are Romanian citizens, as sellers, concerning shares in Rospot S.R.L. with its registered office in Romania, which provides services under the Rohost brand, Hostvision S.R.L. with its registered office in Romania, which provides services under the Hostvision brand, and Top Level Hosting S.R.L. with its registered office in Romania, which provides services under the Top Level Hosting brand. The subject of the Agreements is the acquisition by H88 HOSTING S.R.L. and Net Design S.R.L. of 100% of the shares in Rospot S.R.L. representing 100% of its share capital, 100 % of the shares in Hostvision S.R.L. representing 100% of its share capital, and 100% of the shares in Top Level Hosting S.R.L., for a total value of EUR 4 185 000.

All three companies whose shares were sold to the Company’s indirect subsidiaries provide broadly defined hosting services, domain registration and maintenance, SSL certificate supply and other additional services. The acquired companies generate almost EUR 1,8 million in revenue, representing approximately 8% of the Romanian market. Together, the three companies serve more than 20 thousand customers in the Romanian market and 60 thousand domains. The acquisition of further companies in the Romanian market is consistent with the adopted strategy of the H88 S.A. group, which is directly controlled by the Company, and represents a natural step in the group’s development process and a continuation of international expansion in the hosting and domain area, as well as building a leading position in the Central and Eastern European market. Following execution of the agreements to acquire shares in these entities, the companies belonging to H88 HOSTING S.R.L. together hold the leading position in the hosting and domain industry in Romania, with nearly a 25 percent market share.

The Company decided to classify the information as inside information after the execution of the agreement to acquire shares in Top Level Hosting S.R.L. on 17.05.2019, due to the aggregate value of the transactions and their strategic significance for the group’s development in the Romanian market.