SLOVAK IT company Asseco Central Europe is expanding into western Europe. It is acquiring three sister companies in Germany, Switzerland and Austria, sheltered by Asseco Solutions AG, for €13.8 million, the Hospodárske Noviny daily reported in mid-January.

Analysts see lower wage costs in Slovakia as an advantage , with wages in Germany two- to three-times higher than in Slovakia.

“Germans have, from the viewpoint of functions, very attractive products, but they need to innovate them,” said Jozef Klein, CEO of Asseco CE. “The development in Germany is more expensive and simultaneously Slovak programmers show themselves to be a bit more skilful and motivated.”

The extended company headquartered in Bratislava would obtain, thanks to this acquisition, German qualities – for example, German management styles.

The three companies in the German-speaking countries develop and produce an identical product as the Slovak and Czech companies owned by Asseco CE. These are applications in the ERP segment, which handle double-entry bookkeeping.