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Logo Software Investment S.A. acquired TotalSoft shares for an enterprise value of €30 million and an equity value of €30.25 million. Total Soft had an EBITDA of €3.48 million in 2015 and is expected to reach an EBIDTA of €4,3 million in 2016.
Liviu Drăgan, founder of TotalSoft will continue to lead the operations of the company as CEO.
Logo Software Investment S.A. is the largest ISV software company in Turkey.
The non-binding agreement signed between our Company and Ferabosco Investments Limited and South Eastern Europe Fund LP on April 4, 2016 for consideration of a share purchase in Total Soft S.A. in Romania has been successfully concluded.
Logo Software Investment S.A. – a 100% subsidiary of Logo Yazılım Sanayi ve Ticaret A.Ş. acquired 100% of Total Soft shares for an enterprise value of €30 million and an equity value of €30.25 million.
Total Soft had an EBITDA of €3.48 million in 2015 and based on the performance to date during the current year, Total Soft’s EBITDA is expected to reach over €4 million in 2016, which translates to a 2015 EBITDA multiple of 8.6x and expected 2016 EBITDA multiple of around 7.0x. The acquisition was financed through cash (57%) and bank financing (43%).
According to the estimates of IDC and PAC, Romanian EAS market is expected to grow with a EURO CAGR of 8.3%-12.1% over the next 5 years. Total Soft with its enterprise level customer portfolio is a leading player in this market and is one of the few companies offering end to end services.
The company has a growing international business where international sales make up 23% of total sales in 2015. Total Soft reported revenue of €21.3 million and EBITDA of €3.48 million in 2015. In the first 6 months of 2016, Total Soft realized revenues of €10.65 million and EBITDA of €1.97 million.
The acquisition of Total Soft is expected to enable Logo’s growth in international markets, gain a competitive position in specialized vertical markets like finance, leasing, medical and agriculture, provide an opportunity to tap the highly qualified R&D pool of Romania and be able to transfer Logo’s SME know-how into Romania.
Due to prevalent synergies we expect the acquisition to contribute to our continuing growth in coming periods.
Clearwater and Allen & Overy were the advisors of the sellers while Eversheds and Kolcuoglu were the advisors of the buyers.