The Black Sea Fund LP and Global Bulgaria & Romania Growth Fund CV acquired today a majority stake of Totalsoft SA, a leading Romanian software company. Both funds are managed by Global Finance, a leading private equity firm in Southeastern Europe with total funds under management exceeding $ 650 million.
Totalsoft was founded in 1994 by Liviu Dragan, a successful entrepreneur. It has established a leadership position in ERP and Human Resources with the Charisma business applications and in project management software with Primavera. Exports and outsourcing services to mostly Western European companies account for more than 20% of sales.
SEAF Transbalkan Romania Fund LLC (” TBRF”), main shareholder in Totalsoft, is a venture capital making investments in Romania exclusively and specializing in early stage investments. TBRF investors include prominent European and American private and institutional investors, such as IFC and the Black Sea Trade and Development Bank. TBRF invested in Totalsoft in March 2001 and its investment was instrumental in enabling the company to grow. Between 2001 to 2004, Totalsoft achieved to quadruple its sales reaching $ 5.1 million and increased its profit (EBITDA) increased from $140,000 to $1.2 million. With this transaction, TBRF realized an annual return in excess of 60% on its investment.
Global Finance, the largest regional private equity firm with offices in Athens, Bucharest and Sofia, has established a presence in Romania since 1997 with eleven investments in various sectors of the economy. Global Finance has been very active in the Information Technology & Telecoms sector in the region, more specifically it has invested in five application software companies in the IT industry in Greece and Western Europe.
Mr. Dragan, who remains a shareholder and will continue to lead the company in his capacity as General Manager, noted: “The completion of this transaction marks a turning point for Totalsoft. Together with SEAF and the other founders, we set the foundations for a promising Romanian company. Today, with Global Finance as a partner and majority shareholder, Totalsoft moves to a new era, one of further growth and expansion both in Romania and abroad.”