Czech IT systems and equipment supplier ALEF Group enters the Romanian IT market through a business transfer with Likeit Solution, without specifying the transaction value which has been finalized this end- June.
Thus, Likeit Solution is now ALEF Distibution RO, with 45 employees in Bucharest, and will hire at least 6 engineers for the technical department that company’s officials will develop in the next period.
“Romania is one of the countries with the most recent growth in the IT sector, which is one of the reasons why we considered it appropriate to enter this market. This merger is an important step in the development strategy of the ALEF Group on the European added-value distribution of IT systems and equipment,” Milan Zinek, CEO of ALEF Group stated in a press conference on Tuesday.
He also added that Likeit Solution’s evolution and its business model were decisive factors in choosing a partner for Romania.
Likeit Solution recorded in 2016 sales revenue of EUR 28 million, while its sales reached EUR 10 million in H1 of 2017, mainly driven by Microsoft and CISCO solutions, as well as equipment and components, with the ASUS brand accounting for an important share.
For this year, the new company, which is 70 percent controlled by the Czech group, targets an increase of 18 percent in turnover, compared to the previous year, up to EUR 33 million.
“We are counting on a significant increase in the business of the new company over the next period, based on the synergies created by joining ALEF’s experience and financial capabilities with the local market expertise of the Likeit team,” Mircea Ciucur, Managing Director ALEF Distribution RO, said, adding: “The contracts and the 1,500 resellers network of Likeit are now part of ALEF portfolio. The team will also take the business forward, which, in my opinion, it’s the most important aspect”.
Ciucur believes that there will be more business consolidation in the future on the Romanian IT distribution market.
ALEF estimates for Romania revenues of EUR 23 million for this H2 and reaching a level of EUR 10 million over 5 years. Of company’s total business on the Romanian market, IT infrastructure is 50 percent, security – 35 percent.