Page 10 - bne_Tech_0809_2018

Investment
August/September 2018 www.intellinews.com I Page 10
German Allgeier to pay over €10mn for 67% of Romanian software producer
German software producer Allgeier announced that it has reached an agreement to buy 67% in its Romanian peer iQuest Group, for €10mn+.
iQuest is one of the country’s 20 largest software producers with a turnover of over €30mn, a sharp expansion rate and strong profitability.
The acquisition is subject to approval by the com- petition authorities in Germany and other closing conditions. The purchase agreement is expected to be concluded within the next four to six weeks. Allgeier will then acquire approximately 67% of the shares for a purchase price "in the double-digit million euro range". Cornelius Brody, the founder of iQuest, will retain a 21% stake in the company for the next few years. The operating management holds a total stake of approximately 12% .
Algeier already had a development centre in Romania at Timisoara.
The target company has its headquarters in Germany, but operates software production centres in five Romanian cities: Cluj, Bucuresti, Sibiu, Brasov and Craiova, where it employs 700 developers. It has development centres
in Germany, Poland and Swizerland as well. It operates in Romania through two subsidiaries: iQuest Technologies Cluj-Napoca and iQuest Technologies Brasov.
iQuest was set up in 1998 by local investor Brody and it produces tailored software solutions (70% of income) as well as proprietary products (gener- ally for secure payments and meeting rooms).
It reported €32mn revenues in 2017 and expects €38mn revenues this year, Profit announced. The Romanian company posted a 15% Ebitda margin last year. Algeier reported €580mn revenues and €26.5mn Ebitda last year.
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