Clearwater International has advised Greek private equity house Global Finance, the majority shareholder of TotalSoft, in addition to other shareholders, on its sale to Logo Software Investment S.A. (Logo) – a 100% subsidiary of Logo Yazılım Sanayi ve Ticaret A.Ş. Logo has acquired 100% of TotalSoft shares for an enterprise value of €30m.
According to market reports, the Romanian enterprise application software (EAS) market is expected to grow significantly over the next 5 years. TotalSoft is a leading player in this market and is one of the few companies offering end-to-end services. TotalSoft reported a revenue of over €20m in 2015 and its international sales made up 23% of the overall total. In 2016 the EBITDA is expected to reach in excess of €4m.
The acquisition of TotalSoft offers many synergies to Logo. It will enable Logo’s growth in international markets, and help it gain a competitive position in specialised vertical markets such as finance, leasing, medical and agriculture, as well as providing an opportunity to tap into the highly qualified R&D pool of Romania and to transfer Logo’s SME know how into Romania.
The Clearwater team was led by Partner and head of TMT Carl Houghton, supported by Director Karen Edwards, Emma Rodgers, Director of TMT Intelligence and Senior Associate Richard Ellis.
George Kourtis, Partner, Global Finance added: “The successful exit from TotalSoft showcases our commitment to value appreciation through growth of sales, new product and services development and regional expansion. We assisted TotalSoft’s strong management team to focus on the Charisma product suite and excel in selective vertical markets with high potential for success internationally. Despite the financial crisis, TotalSoft grew over 50% in sales since 2010 and continued to develop innovative applications for its corporate clients.”
Carl Houghton, Partner, Clearwater International said: “This deal was all about international ambition. A Romanian IP owner with Greek investors, already driving revenues into wider CEE and the DACH and a high quality and ambitious listed Turkish buyer extending its footprint in CEE brought to the table by a pan-European advisory firm. We’re delighted to be part of such a European success story.”