Two new shareholders, International Finance Corporation (IFC), the investment division of the World Bank, and the Black Sea Trade and Development Bank (BSTDB), have acquired a minority share package in Teamnet, providing financing of EUR 5 million and EUR 7.5 million respectively in long-term loans.
By Otilia Haraga
Following the investment, the two new investors will each hold 8.33 percent of the Teamnet International shares by the end of the year.
In total, Teamnet has secured financing of EUR 25 million to support its expansion strategy in Romania and the region, according to company officials.
“Romania is a country with high potential and remarkable opportunities for innovation. Technology can change and drive the development of an economy; this is why we believe this industry is important and we support it all over the world,” said Ana Maria Mihaescu, head of the IFC mission in Romania.
“The BSTDB has a strong investment portfolio in Romania, based on agriculture, energy and SMEs, as well as the micro-financing sector. The bank is aiming to expand its operational horizons by adding IT&C to the list of investment priorities in Romania. We are confident that our partnership with Teamnet will provide new business opportunities that are mutually advantageous, both in Romania and the Black Sea region,” said Mustafa Boran, vice-president of the BSTDB.
After the new investors’ entry into the company’s shareholding structure, Bogdan Padiu’s direct and indirect participation in Teamnet group stands at 51.69 percent, according to Hotnews.ro.
A listing on the stock exchange is on the agenda over the next five-seven years, said company officials.
Teamnet announced that the company’s turnover had grown by 35 percent in 2013, to EUR 71 million. By 2016, the firm forecasts it will post revenues of EUR 100 million.
Officials announced that the next foreign branch that the firm will open will be in Croatia.
Currently, Teamnet is rolling out projects in another ten countries in the region. Over the next four years, it plans to expand its footprint in Central and Eastern Europe, the Middle East and North Africa. As part of this strategy, by 2018, Teamnet plans to expand to 12 new markets including Poland, Italy and Bulgaria, where it intends to develop projects in engineering, cloud, business process outsourcing and unmanned aerial vehicles.
About 40 percent of the revenues should be generated by activities outside the Romanian office by 2018.
Some 80 percent of Teamnet’s total revenues come from IT projects for the public sector. The company plans to grow the ratio of projects in the private sector, so that the public sector share will fall to 70 percent over the next five years.
Ymens, the cloud company belonging to Teamnet group, has joined forces with NEC Europe to deliver cloud solutions to the public sector in Romania.
Teamnet has also relocated to a new headquarters in Green Gate, which hosts 600 employees, with less than 10 percent of the company’s headcount working in other local and international locations. By the end of this year, the firm plans to reach 750 employees.