After Avangate sale, serial entrepreneur Radu Georgescu seeks new investment challenges

Newsroom 14/10/2013 | 05:49

“In the future I will do what I have done until now and what I know how to do best. I will build and invest in other technological innovating companies which have the potential to change something, to make a difference in their field of activity,” serial entrepreneur Radu Georgescu, co-founder and president of Gecad Group, told Business Review after Gecad announced last week that it had sold its full stake in international e-commerce solutions provider Avangate to California-based private equity firm Francisco Partners. This is the third exit for the Romanian businessman, after the sale of the RAV anti-virus to Microsoft in 2003 and online payment processing company Gecad ePayment to Naspers in 2010.

“I always consider both options: whether to start a company from scratch or to invest in an already existing one. What is for certain is that it will be in the technological field because this is what I know best and what motivates me the most,” Georgescu told BR. The entrepreneur added that the target of his future investment does not have to be based in Romania.

“At the moment, the fields which seem the most investment friendly at an international level are big data, SaaS and e-commerce. I will not confine myself to investments only in Romania, but I am convinced that it is possible to grow companies out of Romania to the level of highly successful international players such as Avangate.”

The value of the transaction is being kept confidential. The current executive leadership team will remain as is and continue to focus on its core responsibilities. With the exit of the initial investors, Radu Georgescu, Diwaker Singh, Daniel Lynch and William Lansing will no longer serve as members on Avangate’s advisory board. Carl Theobald, Avangate’s CEO and president, will continue to serve on the board, and new members will be announced soon.

Francisco Partners, a private equity firm with more than USD 7 billion under management, intends to inject fresh growth capital in the business to fuel further expansion, product development and growth. “In 2014 we will hire in all areas, especially sales, product development and support. We don’t have a number for the 2014 hires, but it will be higher than the 2013 figure, probably around 50. The company is also looking to expand into new markets, such as Latin America and India where we currently have smaller operations,” Theobald told BR.

 

Radu Georgescu’s current investments

Gecad Net – software solutions and security company, with a portfolio of over 1,200 clients

Axigen – an integrated email, calendaring and collaboration platform currently distributed by over 300 partners from 100 countries

ROL.ro – launched in 1998 as the first online web portal in Romania, it comprises more than 40 websites

Otomed Medical Center – private center for speech therapy and psychology

Elefant.ro – an online book store founded in 2012, in which the entrepreneur has a minor stake, according to market reports, not confirmed by Georgescu

Member of the board of advisors at Smart Bill, Elefant.ro and MavenHut

Otilia Haraga

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