UK-based investment company Integral Venture Partners became the largest shareholder in Bulgarian vending machine services company Breaktime, following an investment of 5 million euro ($5.5 million) via a capital increase, Sofia-based media reported.
The transaction was carried out through Integral's Sofia-based subsidiary Orbit Investment Holdings, Capital weekly said last week.
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Breaktime co-founder Tsvetan Lazharski will retain a considerable stake in the company's capital after the deal, according to the media.
Prior to the deal, Lazharski held 42.5% of Breaktime, Southeast Europe-focused venture fund NEVEQ II had 21.59% and the company's other co-founder - Svetodar Yosifov - owned 19.59%, Capital said.
According to commercial register data, Breaktime's registered capital amounts to 1.91 million levs ($1.1 million/976,600 euro) divided into 1,090 ordinary shares with nominal value of 600 levs each and 2,094 privileged shares with a par value of 600 levs each.
"Breaktime fits in well with Integral's investment mandate on many levels, including as a partnership with a founder/CEO in an already well-developed leading company in an attractive sector. After successfully navigating the challenges of the pandemic, Breaktime is well-positioned for high structural growth in the sector in the coming periods, especially now with the support of Integral as a proactive investor," Stefan Tzetkov, founding partner and CEO at Integral Venture Partners, told Capital.
According to Tzetkov, business growth can be accelerated through consolidation on the local market, as well as by entering international markets.
Breaktime expects significant revenue growth this year mostly due to the partial return of businesses in the offices, Lazharski noted.
In 2020, Breaktime's revenue fell by 35% to 4.73 million levs ($2.7 million/2.4 million euro).
Breaktime is Integral's second investment in Bulgaria. In 2020, the investment company invested in paid-TV services provider Bulsatcom an undisclosed amount.
Integral manages institutional private equity and growth capital and is focused on investments in the countries of central and southeastern Europe. The company covers its pan-regional target market out of hubs in London, Budapest, and Belgrade.
Over 50,000 clients are served by Breaktime's offices in Sofia, Varna, Burgas, Plovdiv, Veliko Tarnovo and Blagoevgrad, according to information published on the company's website.