News › Latest news › Logo Software Investment S.A. To Acquire TotalSoft
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.
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.
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.