The International Finance Corporation (IFC), part of The World Bank group, has awarded financing to Romanian software development, implementation and integration company TeamNet.
The total cost of the project is estimated at EUR 35 million. The IFC will provide up to EUR 10 million of debt and up to EUR 5 million in equity. “The IFC investment as approved by Board totals USD 20.41 million,” according to the IFC webpage.
The IFC’s participation in the project will help TeamNet attract long term financing and improve the company’s capital structure to support future growth, enhance credibility with partners and clients in Romania and other Eastern European markets as well as improve corporate governance, according to the same webpage.
The transaction was approved on December 26, 2013, but the signing is still pending, according to the IFC webpage.
The information first appeared in the media in Ziarul Financiar.
TeamNet was established in 2001 by Bogdan Padiu, George Stan, Ion-Ovidiu Trascu and Radu-Bogdan Nedelcu. The TeamNet group is made up of four companies: IT&C integrator TeamNet, Dedalus TeamNet focused on the medical sector, system integrator TeamNet Engineering and cloud service provider Ymens.
TeamNet International is headquartered in Bucharest, Romania and has presence throughout the country as well as in Turkey, the Western Balkans and Moldova. The project will expand the company’s existing business lines into these markets, says the IFC.
At the end of last year, TeamNet announced a new brand identity to align with the company’s plans to expand its footprint to 12 new markets in Central and Eastern Europe, the Middle East and North Africa over the next five years.
The list of countries where TeamNet announced last year that it plans to open up offices includes Poland, Italy and Russia. At the moment, it has four local offices in Romania – in Bucharest, Iasi, Galati and Bistrita – and four international offices in Belgium, the Republic of Moldova, Serbia and Turkey.
“The company is seeking EUR 25-30 million in a combination of equity and debt to finance its growth in the Eastern European region. The funds will be used to upgrade its existing technical platform and products; increase capacity of its existing operating subsidiaries in the EE region; fund potential acquisitions in the EE region with a view to acquiring personnel with strong technical skills; and provide working capital and restructure of TeamNet’s short-term debt in order to better match its funding needs with its pipeline of contracts,” according to the IFC webpage.
By 2016, the technology company’s turnover is projected to reach EUR 100 million. Currently, TeamNet has 600 employees and aims to reach 750 next year.
More recently, a consortium led by TeamNet was awarded by the Romanian state a contract of nearly EUR 47 million, including VAT, to convert land registry documents in nine counties into digital versions, on behalf of the National Agency for Cadaster and Real Estate Advertising. The consortium also includes XOR IT Systems and Free Dreams, Star Storage and Intrasoft International.
In picture: Bogdan Padiu, CEO of TeamNet