Mostek (Spain) - Jan 2008

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01 January 2008

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Hatton Investments has acquired a 34% stake in software company Mostek in a deal valued at €800,000. The deal is part of a joint venture between Spanish CIT company Bahía IT and Israeli software company Most Technologies, each retaining a 33% stake in Mostek. The deal was originated by the financial backer which had previously established relationships with both companies. This is the first round of financing by Hatton; a subsequent round could be considered within the next 10-12 months. The deal was carried out through Hatton’s Technology Fund I.

Company

Murcia-based Bahía IT was founded in 2006 specialising in the creation of innovative public information technologies serving the Mediterranean basin and offering technological applications to the public and private sectors as well as to financial institutions. Israel-based Most Technologies develops mainframe-based Legacy transaction systems for use with open-sourced applications. The company has been commercialising its products in the US, Europe and Israel since 1997 and currently employs 120 people. Murcia-based Mostek will specialise in the development, distribution, installation and servicing of migrating SOA software. The investors saw the potential for this segment of the software market in Europe and Latin America where numerous businesses are running outdated systems thus affecting efficiency and productivity. As part of the business plan, the sponsors plan to expand their presence into the Latin American market. Hatton will retain two places on the board, while the remaining three will be held by Most Technologies, Bahía IT and a secretary.

People

Christian Barrios led the deal for Hatton.

Advisers

Equity - PricewaterhouseCoopers, (Legal)

Sourced from: Southern Europe unquote" 72 (Mar 2008)