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bne JSuelpyte2m01b8er 2018 Companies & Markets I 25
Russia’s VK
announces privacy
changes to protect
users from arrest
bne IntelliNews
Russian social media site vKontakte (VK) expanded its privacy functions to give its users more tools to protect them from arrest, the company said on August 13.
The Kremlin has been cracking down on online criticism of the government. Vedomosti reports that of 182 criminal cases launched in 2017 for social network posts, 138 were based on VK posts, with another four people prosecuted for posts on Odnoklassniki and two for posting on Facebook.
The arrests have tarred VK with a reputation for being “too compliant” with the authorities, and is now making it harder for them to see what is posted or who posted it.
VK managing director Andrey Rogozov said the social network had begun implementing new privacy features due to the rise in criminal prosecutions in Russia for reposts and likes. Changes include making photos private by default, allowing only the original poster to see which users had reposted their material, and ultimately leading to the ability for users to make their pro- file entirely private, BCS Global Markets reports. Rogozov also said that more changes to the social network are in the works.
“Ongoing reports about criminal charges for social network posts are likely to lead to changes in features, user behaviour, and ulti- mately law enforcement practice but do not represent a fundamen- tal threat to VK's business, we believe,” BCS GM said in a note.
German Allgeier to pay over €10mn for 67% of Romanian software producer
IntelliNews Pro
German software producer Allgeier announced that it has reached an agreement to buy 67% in its Romanian peer iQuest Group, for €10mn+.
iQuest is one of the country’s 20 largest software producers with a turnover of over €30mn, a sharp expansion rate and strong profitability.
The acquisition is subject to approval by the competition authorities in Germany and other closing conditions. The purchase agreement is expected to be concluded within the next four to six weeks. Allgeier will then acquire approximately 67% of the shares for a purchase price "in the double-digit million euro range". Cornelius Brody, the founder of iQuest, will retain a 21% stake in the company for the next few years. The operat- ing management holds a total stake of approximately 12% .
Algeier already had a development centre in Romania at Timisoara.
The target company has its headquarters in Germany, but operates software production centres in five Romanian cities:
Cluj, Bucuresti, Sibiu, Brasov and Craiova, where it employs 700 developers. It has development centres in Germany, Poland and Swizerland as well. It operates in Romania through two subsidiaries: iQuest Technologies Cluj-Napoca and iQuest Technologies Brasov.
iQuest was set up in 1998 by local investor Brody and it produces tailored software solutions (70% of income) as well as proprietary products (generally for secure payments and meeting rooms).
It reported €32mn revenues in 2017 and expects €38mn revenues this year, Profit announced. The Romanian com- pany posted a 15% Ebitda margin last year. Algeier reported €580mn revenues and €26.5mn Ebitda last year.
“iQuest was set up in 1998 by local investor Brody and it produces tailored software solutions”
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