LIFE IS HARD (LIH), a company listed on the Bucharest Stock Exchange, AeRo market, has signed the contract to take over 100% of the share package of Innobyte Solutions – one of the main players on the Romanian eCommerce market.
The estimated value of the transaction amounts to 9, 132 million lei, calculated based on EBITDA obtained in 2018-2020 and planned for 2021. The final price will be determined in 2022, based on EBITDA achieved in 2021.
According to the agreement, the amount is to be paid by LIH in two instalments – 2021 and 2022 – by converting it into shares issued by LIFE IS HARD, following the share capital increase that will be subject to EGM’s approval.
“The new holding that LIFE IS HARD has in Innobyte Solutions consolidates our efforts to develop our company’s foundation. We want to increase our relevance in the digital area, and with Innobyte by our side we have a new competence in eCommerce, in a market that is growing rapidly. In this way, we can bring more value to our customers and shareholders.” says Cătălin Chiș, CEO and Chairman of the Board of LIFE IS HARD | Work Soft.
After the transaction, INNOBYTE’s current partners will hold shares in LIFE IS HARD, and the management team will continue to be involved in the development of the eCommerce business, by having an operational role.
“Following the signing of this partnership, we enter a new stage of development, becoming the first eCommerce company that makes its performance transparent – as part of our increased commitment to our customers, employees and LIFE IS HARD investors”, says Cătălin Șomfălean, co-founder and majority shareholder of Innobyte.
Legal measures to register in the Trade Register (ONRC) will take place in the upcoming weeks, in order to complete the process of entering LIFE IS HARD into the shareholding of Innobyte Solutions. Respectively, LIH’s EGM will be convened, for the approval of the payment mechanism.
The transaction was facilitated by Ciprian Pasca and Vlad Pasca from PASK Advisory, an M&A consulting agency focused on the Romanian tech industry.
As a buyer, LIFE IS HARD was assisted by the law firm LLA and the consultant Andrei Bichescu – LionLink Advisory and Innobyte’s associates were assisted by Alexandru Lefter, partner within LC LegalProof, the coordinator of the mergers and acquisitions department, and Larisa Șomfălean, coordinating lawyer of Advocate.ro.
About Innobyte
Innobyte is a Romanian software development company specialized in eCommerce that aims to maximize the business potential of its partners by developing secure, scalable and innovative eCommerce platforms. In addition to the eCommerce development and maintenance services offered, Innobyte also provides security services, performance analysis and improvement, audit and business consulting services for online stores all around the world.
The company ended Q1 2021 with a turnover of 483,500 Euros (+ 40% vs. 2020) and an EBITDA of 46,000 Euros (+ 24% vs. 2020), being a 100% Romanian business, founded in 2006, by the entrepreneur Cătălin Șomfălean.
As of 2021, the company’s representatives estimate that Innobyte Solutions will exceed the threshold of 2 million euros in turnover, and EBITDA will reach 460,000 euros.
About LIFE IS HARD| Work Soft
The first Romanian software developer listed on the Bucharest Stock Exchange, AeRo market, LIFE IS HARD is one of the most significant solutions providers for smart city projects. LIH has the most utilised insurance brokerage platform in Romania – 24broker – and its own portfolio of solutions addressed to the SME segment.
LIFE IS HARD aims to become a partner of increased relevance for the digital transformation of the business environment and of local communities. The company recently celebrated 5 years on the stock exchange and reached a market capitalization of over 50 million lei (April 2021).
In 2020, LIFE IS HARD began the endeavours to take over the goodwill of two other companies: Active Power Solutions, the largest B2B telecom dealer (transaction concluded in January 2021), respectively Treecomm – distributor of telecom solutions for companies – an ongoing transaction.
For 2021, LIFE IS HARD aims for a turnover of 20 million lei, while the estimated value of the company for 2022 is 100 million lei. Information on the company’s financial performance is available here.
For details: Ema Cătălin, Corporate Communications Partner LIFE IS HARD ([email protected]; 0724.202.505)
