Sirma Group Holding looking for a strategic partner in Ontotext



Sirma Group Holding hires a consultant to explore strategic opportunities for Ontotext, the Company announced in a statement. The Company has hired a consultant, no immediate details on the mandate, to explore options in finding an external investor for Ontotext. The latter is Sirma’s key product company developing semantic web solutions used by clients in the BBC, Euromoney, AstraZeneca, John Wiley & Sons, etc.

Boosting Ontotext capacity via capital increase

Additionally, Sirma to invest c. BGN 1m in Ontotext via a capital increase in the latter the parameters of which have been approved at an extraordinary shareholders’ meeting in January 2017. The investment was expected as Sirma plans to increase Ontotext’s product and marketing capacity. Sirma will subscribe to 8 43 030 new ordinary shares in Ontotext at a BGN 1.16 per share, 27% below our Ontotext fair value estimate. Post –the-capital-increase, Sirma will have 58.6% in Ontotext, followed by VC investor NEVEQ with 26% (Class A1 shares). The rest of the shareholders in Ontotext are company key employees.

Sirma Group 2016 Investment Highlights

The IT group published an investment 2016 wrap-up to highlight what investments were made in 2016 with shareholders’ contribution.

Major point is that last year Sirma set up several new subsidiaries in a bid to increase sales on the US market and to continue developing innovative high-tech solutions for its key business lines. The Group invested USD 2 million to set up in March its unit Sirma Group Inc, based in Jersey City, NJ, the USA.

In May 2016, Sirma Group Holding set up its subsidiary Sirma Medical Systems, targeting to develop software applications that would improve the diagnosis and prevention of major and chronic diseases. Apart from the working Diabetes: M application, Sirma Medical Systems seeks to develop more integrated and complex products for diagnosis and prevention of other common conditions and diseases.

More 2016 Investment Highlights on Sirma’s website

Read about Sirma in ELANA Trading equity research reports