IT Company in Portugal

Industry Overview

The Information and Communications Technology (ICT) sector in Portugal is highly innovative and dynamic, representing 10% of the Portuguese GDP. Here's a brief overview:

• Market Size: The sector has a total turnover of USD20 billion.
• Workforce: The ICT sector employs more than 80,000 people.
• Education: Portugal has a remarkably high proportion of STEM graduates and engineering talent at a competitive cost. The country has the third highest rate of Engineering graduates in the European Union, with around 90,000 students graduating each year.
• Language Proficiency: An extremely high English language proficiency overall is also a great plus.
• Digital Skills: Portugal significantly increased the proportion of ICT specialists, bringing the figure close to the EU average. The percentage of female ICT specialists exceeds the EU average.
• Digital Public Services: Portugal is among the EU leaders in digital public services.
• Startups and Innovation: In the past decade, the profile of ICT companies has shifted from traditional ICT providers to highly specified and innovative startups. Lisbon is one of Europe’s fastest-growing tech ecosystems, making a name for itself as Europe’s Silicon Valley.
• Tech Events: Lisbon is home to hundreds of tech events and meet-ups.

Overall, Portugal shows important levels of sophistication in the ICT field, with a good network, considerable levels of investment in R&D, as well as elevated levels of accessibility and connectivity. The country is known for easily adopting innovative technologies and for having a highly qualified and competitive workforce.

Location

Lisbon Metropolitan Area

Business Description

The company maintains a great relationship with its suppliers, who are highly regarded in the market. It has a wide client portfolio, where part of its acquisition comes from public and municipal tenders. The company has annual contracts with customers to renew the supply of services and hardware.

Financial Summary

• Market value of the property five hundred thousand euros, market value of the company one million euros (includes a 50% stake in another entity that has a turnover of five hundred thousand euros)
  
• EBITDA margin and average net profit of 4.3% and 2.7%, respectively
  
• Average annual sales growth, for the last 3 years, of 10.2%
  
• Minimum CAPEX needs since most of the investment in fixed assets has already been made.
  
• Stabilized working capital needs, with a constant 45-day cash conversion cycle.
  
• Company sold with around eighty-three thousand euros of debt and 265 thousand euros of cash and bank resources.
  

Transaction Information

Full sale