Sarmis Capital Invests in SMART ID Dynamics, Leading Independent Romanian Provider of Automation Services

SARMIS Capital, the largest private equity fund dedicated to Romania and neighboring countries, acquired the majority stake in Smart ID Dynamics, a market-leading Romanian automation company. SARMIS is partnering with Mr. Daniel Boangiu, the CEO and co-founder of the company, and with Mr. Romeo Iacob, co-founder and Board Advisor, aiming to further consolidate SMART ID’s market position and expand internationally.

Smart ID specializes in providing highly customized end-to-end automation solutions for intensive business environments, primarily to customers in industries such as retail, logistics, and manufacturing, to optimize costs and increase productivity. The company has a proven track record of delivering mission-critical, proprietary, tailored solutions across the value chain, from solution design & development to implementation and post-implementation maintenance & support. Despite a globally challenging environment, the company managed over 20% growth in 2021.

The company was founded in 2010 by two technology passionate entrepreneurs, Daniel Boangiu and Romeo Iacob, who believed early in the future of automation and mobility technologies. During its 11 years of activity, Smart ID services have been successfully delivered to more than 3,000 clients in more than 250 completed projects and currently, the company serves an impressive portfolio that includes blue-chip multinational companies (such as Carrefour, Selgros, REWE, Leroy Merlin, British American Tobacco, JTI, Philip Morris, TNT, DHL, KLG, XPO, IDL), large Romanian companies (such as eMAG, Sameday, Cargus, Dacia, Macromex), as well as numerous reputable SMEs.

Constantly improved and highly scalable, the transformative solutions that the company provides are aimed at digitalization, mobility, automation, and robotization of each customer’s needs, and have turned Smart ID into a trusted, long-term partner for its top local and international clients.

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Cezar Scarlat, Managing Partner and co-founder of SARMIS Capital, said: “We firmly believe in the impact that technology, through automation and digitalization, will have in the region’s economic growth and future. Smart ID garnered our attention and convinced us with its strong results, being not just a software integrator but an end-to-end Romanian independent solutions provider, with an ambitious and excellent technical management and execution teams. We envision multiple avenues through which we can tangibly contribute to the company’s expansion. Through the new partnership, Smart ID will fully benefit from Sarmis’ strategic expertise and financial power, having at its disposal EUR 20-30m for organic growth and acquisitions.”

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Daniel Boangiu, CEO and co-founder of Smart ID, said: “We are honored we earned the trust of SARMIS Capital. We believe this deal will make us a formidable player at both local and regional levels. Our responsibility from now on is to make the deal create unmatched value for the company, by adding to the resources that helped us to become one of the most important companies in the industries we are targeting and to our most important asset – our people, a unique combination of experts, new capabilities, new technologies, better processes and, most of all, better solutions for our existing and future customers.

Importantly, this deal helps us to keep our purpose alive, and to become more powerful and more focused, as to build a promising future for our customers, our employees, our partners, investors, and our communities. We expect to bring innovation, embedded expertise, technologies of the future, and financial power to keep growing and improving, providing a better life and better possibilities. With all these in place, we will build the strongest regional player.”

Under the new shareholding structure, Smart ID plans to consolidate the company’s leading position through the accelerated development of the business and increase of its client base, branching out with proven, successful solutions towards new sub-sectors, as well as through strategic local and regional acquisitions, all of these with a continued focus on ESG (Environmental, Social, Governance), sustainability and CSR (corporate social responsibility).

Following this deal, Daniel Boangiu will remain an important shareholder and continue to act as the CEO of Smart ID, with full responsibilities regarding the company’s strategy execution.

SARMIS was advised in this process by Radu Tărăcilă Pădurari Retevoescu SCA (RTPR) (legal and transactional), EY Romania (financial and tax), Kearney (commercial). Smart ID and its shareholders were advised by bpv Grigorescu Ștefănică (bpvGS) (legal and transactional), Dobrinescu Dobrev SCA (tax), and Path-Finder Corporate Finance (sell-side advisor). Special thanks go to Kogaion Investments who was instrumental in the deal in multiple roles.

Smart ID is the second investment made by SARMIS Capital in Romania, after the recent acquisition of a majority stake in Corporate Office Solutions – COS (leading provider of custom fit-out services).