The deal “sends a positive signal regarding the development plans of the company,” added Socol, who is one of the five executives involved in it.
“We are marching on this new way with confidence, based on our team’s professionalism and portfolio and we are optimistic that we will manage to further develop our business locally and internationally,” Irina Socol said.
Software developer Siveco’s news release does not reveal the value of the deal, merely saying, “After eight years of collaboration, expectations from both sides were fulfilled”.
The statements of the representatives of the two private equity firms do not shed light on this, either.
“Since our investment in 2005 in Siveco, we have seen the company grow and become one of the key players in the e-learning and enterprise application software market,” said Marcin Hejka, managing director of Intel Capital Eastern Europe, Middle East, Africa and Russia.
“I have personally led the investment in the company and I am happy to see that Siveco has done so well. Intel Capital would like to congratulate Siveco’s management on this transaction.”
Enterprise Investors partner Rafal Bator, who is responsible for this investment, in turn said: “Siveco has evolved from a national software provider into a major international player and we are happy to have supported the company’s expansion on international markets. We are particularly pleased with the evolution of the eLearning line of business, which quickly became the engine of the international expansion. I am sure that the remaining shareholders and the management will continue to implement the expansion strategy and will soon replicate the success already recorded in other fast-growing markets.”
Since 2005, Siveco turnover increased from $35 million to $89 million in 2012. The company has projects in 27 countries today and a portfolio of over 1,500 clients in Romania and in the world, its officials said.
The company opened during this interval five commercial offices in Bulgaria (in 2008), United Arab Emirates (in 2010), Belgium (in 2011), Kazakhstan (in 2012) and Turkey (in 2013).
“Siveco Romania gained a solid reputation in Europe, Middle East and CIS countries, North America and has over 20 contracts with important organizations of the European Commission,” says Alexandru Radasanu, Siveco Romania co-founder and vice-president, R&D.
“We are confident that, like we managed to become the local IT leader and regional leader in software integration, we will know how to consolidate it. We want to continue the development on the international markets.”
Ziarul Financiar first reported on the talks between the two private equity firms and Siveco last year and then early this week announced the deal had been closed.
Intel Capital and Enterprise Investors bought into Siveco in 2005 when they got 32.5% of the shares for $12 million.
The founders of the local software company bought the shares back via Siveco International SA, established in mid 2013.
Irina Socol, her husband Alexandru Radasanu and three members of the top management team (Florin Ilia, Aurora Crusti and Daniela Bichir) own more than 30% in Siveco International SA, while Siveco Netherlands B.V. owns 66.2%.
The Siveco release does not provide any details about the shareholder structure, merely saying “the current shareholder structure of Siveco Romania includes Siveco Netherlands and individuals from the company’s management.”
Siveco International, Siveco Netherlands and the five founders of the software company got $14.7 million from Raiffeisen Bank in October 2013, according to the documents in the Electronic Archive for Security Interests in Movable Property (AEGRM).
Siveco International, Siveco Netherlands and the five founders guaranteed the loan with the shares they own in the software developer either directly or indirectly and the future revenue. The assets pledged as collateral are worth EUR17 million, the documents say.
(English version by Loredana Fratila-Cristescu)