Romania’s Softbinator Technologies to acquire IT co [e-spres-oh]

By acquiring [e-spres-oh], Softbinator will consolidate its presence in Romania’s western part and expand its portfolio of US clients, it said in a press release.

In turn, [e-spres-oh] targets a turnover of approximately 11 million lei ($2.3 million/2.2 million euro) in 2022.

To carry out this transaction, Softbinator will use part of the capital raised from the Bucharest Stock Exchange (BVB) investors during the private placement of its shares, which took place in September 2021. This marks the company’s third transaction with capital market funds, after acquiring WiseUp at the end of 2021 and Digital Tailors in May.

"Together with [e-express-oh], we are beginning to provide services on the East Coast, especially in New York and Washington, D.C," said Daniel Ilinca, founder and CEO of Softbinator Technologies.

According to a separate statement filed with the BVB on Tuesday, the price of the transaction is $600,000 cash, plus shares of the company, representing the equivalent of the profit recorded during 2022 multiplied by 2.2. The amount will be paid in two installments during 2023-2024.

Founded in 2012, [e-spres-oh] is a Timisoara-based company specialising in software development, consulting, testing, and UI/UX. [e-spres-oh] was sold to US-based investment company Alpine Group, then taken over by current shareholders Daniel Markovits, Horia Radu, Bogdan Dinga, and Marcel Barbulescu. The company recorded a turnover of 7.6 million lei in 2021.

Softbinator Technologies was established in 2017 and employs approximately 100 in Bucharest and Constanta. Its portfolio includes clients from the US, Israel, Singapore, Romanian, and the UK. The company posted a net profit of 2.6 million lei in 2021, up 3% on the year and a turnover of 15.1 million lei, up by an annual 22%, according to data from the finance ministry.

In May, Softbinator announced it had opened an office in Silicon Valley, aiming to increase its U.S. client base.

Its shares traded up 0.58% at 69 lei/share at 10:14 CET on Tuesday, on the Bucharest Stock Exchange.

(1 euro = 4.9419 lei)