TSS Europe’s investment in Asseco Poland – and its declared value strategy – draws an interesting direction for Poland ‘s largest software house. TSS’s acquisition of 14.84% of treasury shares and further market shares is expected to lead to a 24.84% equity stake in the company.
The TSS engagement is not intended to be a typical exchange rate speculation, but a bet on sustainable fundamentals: margin expansion, recurring revenue scaling (ARR) and rigorous capital management. Among the forms of capital allocation under consideration – alongside product investments and acquisitions – are dividends and buybacks, provided they encourage value per share growth.
A key element of the agreement with TSS is to be a mechanism for aligning the interests of executives with those of shareholders. At its core is the allocation of 3% of Asseco’s shares (out of equity) to Adam Góral, as recognition for the implementation of the succession plan, and 1.5% to a significant group of senior managers. These shares will be subject to vesting and lock-up, and a new share issue is ruled out.
For Asseco – which, as part of the Asseco Group, operates in 65 countries, generating a significant proportion of its revenue from its own products – a strategic partner like TSS brings not only a capital boost, but also potentially know-how in the consolidation and development of subscription models.
The scale of execution remains a risk – vesting schedules, the incentive balance towards shareholders and the ability to maintain margins in competition with global players. If the announced mechanisms are implemented transparently and consistently, the gains could be significant – including on the part of small shareholders who care about the long term.
