The Board’s approval is in accordance with the mandate granted at the general shareholder meeting of September 29, 2021.
“The Board’s decision is in accordance with the accelerated growth actions of Life Is Hard business, and the amount lent targets to fund Innobyte Solutions’ strategy with impact on its results. In 2021, the company’s management expects Innobyte Solutions S.R.L. to exceed the EUR2 million turnover threshold and the EBITDA is seen reaching EUR460,000”, per a stock market report.
In 2021, Life is Hard has acquired 100% of the share capital of Innobyte Solutions, one of the leading players on the Romanian e-commerce market. The estimated value of the transaction is RON9.132 million, calculated based on the EBITDA recorded in 2018-2020 and projected for 2021. The final price will be set in 2022, based on the actual EBITDA recorded for the current year.
Under the agreement, the amount is to be paid by the company in two tranches, in 2021 and 2022 – through conversion into shares issued by Life is Hard, following the share capital increase pending shareholders’ approval. Upon the completion of transaction, the current associates of INNOBYTE are going to hold shares in Life is Hard, and the management team will continue to be involved in developing the ecommerce business.
Innobyte ended the first quarter of 2021 with a turnover of EUR483,500 (up 40% vs 2020) and an EBITDA of EUR46,000 (up 24% vs. 2020). Innobyte is a 100% Romanian business founded by entrepreneur Catalin Somfalean in 2006. For 2021, company representatives expect Innobyte Solutions to overshoot the EUR2 million turnover mark and the EBITDA is seen reaching EUR460,000.
In 2020, Life is Hard set off procedures to acquire the goodwill of two other companies: Active Power Solutions, the largest B2B telecom dealer (deal closed in January 2021), respectively Treecomm – telecom solutions distributor for companies – ongoing deal.
Life is Hard ended 2020 with a net profit of RON242,000, up 22.14% from the first quarter of 2020, and a 292.2% higher turnover of RON5.1 million, per stock market data. For 2021, Life is Hard targets a turnover of RON20 million. Life is Hard, with a stock market capitalization of RON65.2 million, is 35% held by Ioan-Catalin Chis and 33.4% owned by Active Power Solutions.