Related products
Discover our products in action
Grow your website and business with cyber_Folks tools. See how our products can make your everyday work online easier.
Learn moreR22 is continuing its international expansion and its pursuit of regional leadership in Central and Eastern Europe. The R22 Group has signed an agreement to acquire Croatian company Avalon, which will position it as the second-largest player in the Croatian hosting and domain market with a share of over 17%. Completion of the EUR 1.8 million transaction is planned by the end of July.
Avalon is the second-largest player in the Croatian hosting and domain market. The company generates over EUR 800,000 in revenue, giving it a market share of over 17% and a firm runner-up position. Avalon serves over 9,000 customers. R22 plans to finance the transaction through debt, with the support of the Foreign Expansion Fund FIZAN, managed by PFR TFI S.A.
– Entering the Croatian market is an important next step in R22’s international development and our drive to become a regional leader. Over the coming years, we intend to enter further countries, targeting markets with a combined population of 100 million people. – says Jakub Dwernicki, CEO of R22.
Avalon offers hosting services, domain registration and management, dedicated servers, SSL certificates and a range of additional services. The company is in good financial health: in 2018 it generated over EUR 800,000 in revenue with an EBITDA margin of approximately 25% and a net margin of approximately 15%.
– Avalon has a strong position in the Croatian market and a diversified customer base. Building on its resources and our own experience, we intend to drive the consolidation of the Croatian market. Additional transactions could be completed within a few quarters. – adds Jakub Dwernicki.
The market consolidation project in the countries of Central and Eastern Europe replicates the Group’s approach and achievements in the Polish hosting and domain market, where a strong top-3 position was built through the acquisition and integration of several smaller entities. R22 has a dedicated team for acquisitions and the integration of acquired businesses. The success of its M&A activity stems from a people-first approach, drawing on the knowledge and experience of acquired teams and effective management of both people and capital.
R22 is a technology group providing comprehensive services in the areas of online presence and business process automation, in particular communication, marketing and sales. In Q3 2018/2019 (the three months ended 31 March 2019), the Group achieved PLN 37.3 million in revenue and PLN 10.0 million in normalised EBITDA – representing year-on-year growth of 28% and 51% respectively. Net profit rose 90% to PLN 4.9 million.
