Bulgarian IT provider Telelink Business Services Group (TBSG) has received approval from its supervisory board to acquire majority stakes in five information and communication technology companies across the United Kingdom, Sweden, and Romania. The expansion project, valued at up to €42.3 million, aims to bolster the company’s international presence and service portfolio.
Strategic Expansion into European Markets
The decision to pursue these acquisitions marks a significant shift for the Bulgarian-based firm, which has historically focused on IT infrastructure and solutions. According to the company’s official announcement, the board has authorized the acquisition of majority stakes in five distinct entities. The move involves a 100% purchase of a British firm, a 51% stake in a Swedish company, and the acquisition of three additional entities currently under common control in Romania.
This strategy comes as part of a broader effort to scale, as reported by dbr.bg. While the company has not publicly disclosed the names of the five target firms, the profile of these businesses is clear: they operate in the resale, consulting, implementation, and maintenance of IT systems. Their technological expertise spans critical modern sectors, including private communication networks, data centers, cloud solutions, CRM and ERP software, automation, and artificial intelligence.
The acquisition strategy targets established players to ensure immediate market penetration in Western and Northern Europe. By securing a 100% stake in the British entity, TBSG gains full operational control over its UK market entry, while the 51% stake in the Swedish firm provides a controlling interest in a Nordic market known for advanced digitalization requirements. The three Romanian entities represent an effort to consolidate regional expertise in a market where the company already maintains a presence, thereby creating economies of scale in the Eastern European IT services sector.
Financial Structure and Investment Timeline
The total investment for this multi-country expansion is capped at €42.3 million. The financial roadmap is split into two phases: an initial payment of €33.6 million, with the remaining balance scheduled for payment through 2029. To facilitate the purchase of the British entity, the company plans to finance up to 70% of the transaction via a bank investment credit.
The financial health of the target companies serves as the primary justification for the investment. These firms collectively generated €28.8 million in revenue during 2025, with an earnings before interest, taxes, and depreciation (EBITDA) total of €4.7 million. As noted by money.bg, this consolidation is intended to support the company’s vision of constant development and deeper integration into both domestic and foreign corporate markets.
The deferred payment structure, which extends through 2029, is designed to align the final investment costs with the anticipated performance and integration milestones of the acquired units. By utilizing bank debt for a significant portion of the UK acquisition, TBSG aims to preserve its cash reserves for working capital and potential subsequent investments, maintaining a balanced capital structure despite the significant outlay required for this multinational project.
Regulatory Hurdles and Operational Status
Despite the approval from the supervisory board, the acquisitions are not yet finalized. The company, which is listed on the Bulgarian Stock Exchange (BSE), clarified in its regulatory filing that no binding contracts have been signed as of May 2026. The deal remains contingent on meeting several conditions, most notably the receipt of necessary regulatory approvals in the relevant jurisdictions.
The company has been actively building its international footprint. This latest move follows previous activity, such as its acquisition of a Croatian IT firm for €9 million. By targeting companies with established client bases in the UK, Sweden, and Romania, the firm—officially known as “Телелинк Бизнес Сървисис Груп”—is positioning itself to capture a larger share of the enterprise IT market.
The leadership of the company, now operating under the shortened brand name TBS, remains focused on the transition as they wait for the final regulatory green light. For now, the focus shifts to the technical integration of these disparate firms, which serve diverse corporate clients across Europe. The success of this expansion will likely depend on the company’s ability to harmonize these new service offerings under its existing infrastructure framework without disrupting the operations of the newly acquired entities.
The regulatory review process is expected to scrutinize the cross-border nature of the deal, particularly regarding the transfer of control in the British and Swedish jurisdictions. TBSG’s management has indicated that the integration phase will involve aligning the target companies’ technical service delivery models with TBS’s centralized management systems. This operational harmonization is intended to standardize service quality across the newly expanded footprint, ensuring that the combined entity can offer a unified value proposition to enterprise clients operating across multiple European borders.
Furthermore, the board’s decision reflects a calculated risk-management approach. By selecting entities that already generate combined annual revenues of €28.8 million, TBSG is acquiring proven businesses with existing cash flows, rather than speculative startups. This strategy minimizes the risks typically associated with market entry into the competitive UK and Nordic IT sectors. Should the regulatory approvals be granted as anticipated, the combined organization will be positioned to leverage its increased size to negotiate more favorable terms with technology vendors and expand its service portfolio to include more complex, cross-border digital transformation projects for its multinational client base.
