Romania’s largest online retailer eMAG has invested EUR 1.7 million in Zitec, thus acquiring a minority stake in the leading local software company, a press release informs. The money will be used to boost company’s growth by increasing the team and opening new offices.
The capital injection, which will take place through a series of transactions, took into account Zitec’s growth potential in software development services and online marketing, as well as the investment portfolio in startups.
Among the companies in Zitec’s investment portfolio are Zipongo.com (USA) cosQuare.com (Netherlands) and HAC!BD publishing house (Romania).
“We remains an independent entrepreneurial company, a fact which made this transaction possible, besides a very good alignment of strategic objectives,” Alexandru Lapusan (photo), CEO & Founding Partner Zitec stated.
Moreover, Zitec will use the capital infusion to create a department for European funds and grants. Almost 40 percent of Zitec’s revenues come from projects developed for foreign clients, mainly from the US, Canada, the UK, Germany, Switzerland, Italy and the Netherlands.
“This strategic transaction will allow us to continue the accelerated development of extensive local and regional projects with a major impact on the market, with the support of a competent partner in advanced IT services,” eMAG CEO and shareholder Iulian Stanciu said.
This movement comes after in September 2016, Zitec acquired local web-design and digital services provider Inotec for an undisclosed sum and said it plans similar acquisitions.
Founded in 2003, Zitec has currently 115 employees approximately and offers a full range of services which includes IT consulting, planning and developing web projects, SEO optimization and performance marketing. Zitec’s net profit doubled to RON 4 million in 2016, from RON 848,765 in the previous year, according to Finances Ministry data.