Geofoto Group signed an agreement today in Zagreb with the European Bank for Reconstruction and Development (EBRD), whereby the bank enters into ownership of the leading company in the field of geodesy and geoinformatics. This is an investment worth four million euros, which makes EBRD the owner of a minority stake in Geofoto Group, specifically acquiring 9.6 percent of the company.
The agreement was signed by Dr. Zvonko Biljecki, CEO of Geofoto, and Hrvoje Crnogorac, senior banker at EBRD. This agreement marks the first Croatian investment under the Local Enterprise Facility program, a bank instrument aimed at complementing private equity investments, primarily intended for medium-sized enterprises in Southeast Europe. The marriage of EBRD and Geofoto, as Biljecki referred to this collaboration, is expected to last seven years. – We walked, or rather negotiated, for 10 months. We even paused for four days – joked Biljecki, expressing satisfaction with the agreement, which he believes will help achieve his goal – to become the largest company in geodesy and geoinformatics in Europe.
Geofoto Group will use the funds obtained from EBRD to implement its investment plan in 2010 and 2011, specifically to finance the acquisition of new equipment, including the purchase of a new aircraft. From the four million euros, Geofoto Group aims to reach 34 million in the next three years. During this period, the company’s revenues are expected to grow by 25 percent annually. For comparison, in the last five years, Geofoto’s annual revenues have grown at an average rate of 37 percent. With its stake in Geofoto, EBRD will be involved in making important strategic decisions, and the company’s activities will be monitored by participating in the Supervisory Board.
