Hungary's largest domestically-owned Microsoft cloud services partner is created

Extraordinary information

A Gloster Infocommunication Public Limited Company (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A A/2. ép.; hereinafter referred to as the Company, Gloster) informs the following to the Honoured Investors pursuant to the applicable laws and the General Business Rules of the Budapest Stock Exchange.

Comes from Hungary's largest home-grown Microsoft cloud services partner

A Gloster Cloud Zrt. and Systemfarmer Zrt. are the owners of the companies have signed an agreement to merge the companies, making this the largest Microsoft the largest domestic cloud services partner company in the world. The aim of the transaction is to make the combined company Hungary's market leader and within a few years to become the a dominant player in the region.

In the photo from left to right: Viktor Szekeres, Chairman of the Gloster Infocommunications Plc. Board; András Téglás, Systemfarmer Zrt. board member; László Földesi, Systemfarmer Zrt. board member after the signing ceremony

The professional team of Systemfarmer Zrt. consists of nearly 25 people and aims to provide high quality Microsoft cloud-based IT services to support the digital transformation of its corporate customers by implementing solutions such as Microsoft 365, Microsoft Azure, Dynamics 365, Power Platform or Copilot. They also specialise in software development and project management services, IT audit, IT operations and consulting, and IT security solutions. In the coming years, the team and competencies will be expanded in the areas of artificial intelligence and IT security.

Systemfarmer in the digital transformation of more than 400 organisations and has received numerous awards from Microsoft, including including multiple Gold and four Silver Partner certifications and the "Microsoft Partner of The Year" and four "Fastest Partner of The Year" awards Growing Cloud Company" award four times. Some of the Portfolio's best known clients include publisher Net Média Zrt., accommodation portal Szallas.hu, US-based Transcend Software Inc., the world's leading provider of design automation software and international employment agency WHC Group.

The transaction takes place in two steps: after the contract is closed a share swap will take place, after which the companies will be merged as of 1 January 2025. Gloster Cloud Zrt. and will continue to be known as Gloster Group Cloud business of the Gloster Group, complemented by the current Systemfarmer László Földesi and András Téglás, the current heads of Systemfarmer. Until the end of 2024 the parties will use the ten months until 2024 to thoroughly prepare the merger the renewed organisation, which will now have almost 40 members, will be will be able to serve the two companies at a higher level, faster and more flexibly. customers of the two companies. The transaction will be greatly facilitated by the fact that the two companies' activities overlap to a significant extent. Systemfarmer's financial results were first reported in the consolidated accounts of the Gloster Group in 2024.

The present announcement is the eleventh transaction of Gloster Infocommunications Plc and is part of the updated strategy of 7 November 2022, which also included the Company's intention to accelerate its organic growth through the integration of cloud and software development companies. The move is also in line with the $200 million per annum business development programme announced on 27 November 2023. As part of this, Gloster merged the sales teams of its Systems Integration and Cloud businesses into a single domestic sales team in January this year, which will now market the offerings of both businesses. As a result of this measure and the Systemfarmer merger, management expects the Cloud business to deliver higher than expected growth in financial results in 2024. This is supported by research from market research company Statista, which expects growth of nearly 50% in the public cloud market by 2028 and around 160% in the artificial intelligence market by 2030.

According to László Földesi: "Although we've been competing in the same field for a long time, we have strong teams in different areas, so we complement each other very well. By joining forces, we can work in a more organised way with a larger and professional team of professionals. The satisfaction and success of our clients is important to us, and together we can further strengthen in this area and devote more time to international expansion."

Gloster's President Viktor Szekeres said, "With the merger of our cloud subsidiary Gloster Cloud Zrt. and Systemfarmer, we are creating Hungary's largest domestically owned Microsoft cloud services partner, opening a new chapter in the Hungarian and regional cloud market. Our goal is to be the market leader with our combined strengths, helping our customers' digital transformation with our innovative solutions. This merger underlines our commitment to technological advancement, the continuous expansion of our dedicated team of professionals and the support of our customers' success."

About Gloster

Gloster on BSE listed in the standard category of the BSE, offering a wide range of international IT international IT service provider. In its more than 20-year history, Gloster has grown from a hardware garage company to a software to an international medium-sized company with a software focus. Gloster is a fast-growing eleven transactions since 2018, and has grown to expanded its activities in systems integration, cloud solutions and and international software development services. The Group is currently currently has a team of nearly 350 people, with the latest (Hungarian Accounting Standards 2022 audited consolidated financial statements (according to the Hungarian accounting standards), its turnover is 6,439 billion HUF, EBITDA of 940 million HUF, profit after tax of 414 million HUF HUF 414 million.

Nagytarcsa, 16 February 2024.

Gloster Infocommunications Plc.

More information:

dr. Eszter Bassola

Investors relations officer

bassola.eszter@gloster.hu