May 18 (SeeNews) - Romanian software developer Life is Hard [BSE:LIH] said on Tuesday that it has signed a contract for the takeover of local e-commerce solutions developer Innobyte Solutions for an estimated 9.132 million lei ($2.26 million/1.85 million euro).
The transaction is estimated to be completed on June 30, after all preliminary procedures are fulfilled, Life is Hard said in a statement filed with the Bucharest Stock Exchange, BVB.
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The price was estimated based on EBITDA obtained during 2018-2020 and expected for 2021. According to the agreement, the final price of the shares will be determined in 2022 based on the EBITDA achieved in 2021.
The final amount will be paid in two tranches, on May 26 and on April 30, 2022.
Following the deal, Life is Hard aims to complement its portfolio with web development services tailored for small and medium-sized companies, it said in January, when announcing the transaction.
Founded in 2009 in Bucharest, Innobyte Solutions posted in the first quarter a turnover of 483,500 euro ($592,900), up 40% on the year, and an EBITDA of 46,000 euro, up by an annual 24%.
Life is Hard was established in 2004 in the northwestern city of Cluj and is listed on the alternative trading system of Bucharest Stock Exchange, AeRO.
Shares of Life is Hard traded 11.76% higher at 12.35 lei ($3.06/ 2.5 euro) on the BVB as at 1418 CET on Tuesday.
($= 0.8185 euro)