Kapsch also plans to reach 50 employees by the end of this year, and around 200 within five years’ time, Jochen Borenich, member of the board of one of the group’s divisions, BusinessCom, a provider of integrated IT&C solutions, told ZF.
“We believe we will sign an acquisition agreement over the next few weeks, we are in talks with several companies. Our objective is to make a quick move on the Romanian market and the only possibility is an acquisition,” said Borenich.
“All I can say is the transaction will amount to a seven-digit euro figure,” said Borenich, adding he was targeting service providers.
“We will not own communications technology infrastructure in Romania. We can collaborate with operators, either to provide them with services and equipment, or to integrate their communications services, but we don’t want any cables,” he also said.
The plans target a five-year period, says the Kapsch manager: “The plan is to reach 50 employees by the end of the year. Our strategy encompasses a five-year period: if the business goes according to plan, we will reach 200 employees.”
Last year the local software and IT services market was valued at EUR704 million by research company Pierre Audoin Consultants, which forecasts a growth towards EUR760 million in 2011.
Jochen Borenich says the company’s target is not to open a nearshore center in Romania. “We are not looking for cheap resources to create a cost-saving center. We are looking for highly-specialized employees in order to ensure a place for us on the market.”
The Kapsch official says the group does not plan to set up a subsidiary controlled from Vienna but an independent one. It is also in talks to recruit a CEO and is ready to “invest millions of euros in Romania”.
He cites as reasons for the group’s expansion the presence of many Austrian companies with which Kapsch does business in Austria, and the business potential of the public sector.