Page 18 - bne magazine February 2022_20220208

18 I Companies & Markets bne February 2022
Utkonos is one of the top 10 e-grocery operators in Russia, which is the fastest-growing foodtech and e-grocery segment.
The Lenta/Utkonos deal will be financed by Severgroup that will acquire an additional issue of Lenta's shares under a closed subscription. At the end of 2019 Lenta was acquired by Severgroup of steel tycoon Alexei Mordashov, narrowly outbidding Magnit, its retailing peer. Severgroup also holds a stake in Utkonos.
While previously Severgroup did not roll out a comprehensive strategy for Lenta, the company started to aggressively expand through M&As.
"The acquisition of Utkonos will enable Lenta to significantly expand its online market share with an additional
delivery platform featuring a loyal customer base, unique competencies and competitive advantages and the ability
to compete in the Moscow online market more effectively, especially within the upper-middle and premium segments," the company said in a press release.
Utkonos is an online-only food retailer based in Moscow and is a pioneer of the e-grocery segment in Russia. In 2020, Utkonos’ share of the Moscow e-grocery market amounted to approximately 10%.
Two investment funds buy Bulgarian IT company Chaos
bne IntelliNews
TA Associates, a global growth private equity firm, and LEA Partners, a technology focused private equity firm, are acquiring Bulgarian IT company Chaos, it said in a press release on January 11.
Subsequently, Chaos, which is specialised in photorealistic rendering technology, will merge with Enscape, a developer of real-time rendering and design workflow technology
for the Architecture, Engineering and Construction (AEC) industries.
In 2020 Utkonos reached 2.7mn orders with an average ticket of RUB5,359. In 1H21, Utkonos total sales grew by 11% compared to the same period of the previous year to RUB7.8bn.
Following the deal completion, the CEO of Utkonos Danny Perekalsky will take the position of the CEO of Online business unit Lenta-U, reporting to CEO of Lenta, Vladimir Sorokin. So far, Lenta did not change its performance guidance for 2021, but will provide 2022 guidance in February 2022.
Lenta posted a 13% year-on-year gain in revenues in 3Q21, with EBITDA up by 31% y/y and a 91% y/y gain in net income. The top line growth was driven by a 3.5% advance in like for like (LfL) sales, as well as by larger sales surface due to acquired 190 supermarkets and 44 convenience stores.
BCS Global Markets sees the results of Lenta in 3Q21 as solid, with strong margins (EBITDA margin up by 119 basis points to 8.8% and net margin up to 3.5%). Previously Lenta showed compressed margins in 2Q21.
Sberbank CIB attributed the "decent" gains of Lenta in the reporting quarter mostly to the recent consolidation of the chains Billa and Semya. The analysts see a 8% EBITDA margin target for 2021 as feasible due to the effects of the M&A.
“The merger will establish a global leader in the 3D visualisation and design workflow software sectors, with a focus on the AEC, Visual Effects (VFX) and Product Design verticals,” Chaos said in the press release.
The new company will retain the name Chaos. It will focus on developing and strengthening its product portfolio to create a comprehensive end-to-end visualisation ecosystem.
Founded in 1997, Chaos has offices in Sofia, Prague, Seoul, Tokyo, and Los Angeles.
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