SIVECO Romania raises $12 Million funding from Intel Capital and Enterprise Investors | SIVECO Romania

SIVECO Romania raises $12 Million funding from Intel Capital and Enterprise Investors

Friday, July 15, 2005

Bucharest, 14 July 2005 - SIVECO Romania, a leading local software provider, announced today the investment of USD $12 million by Intel Capital, Intel Corporation's venture investment program and Enterprise Investors (EI), the largest private equity firm in Central and Eastern Europe, through a combination of capital increase and buyout transaction. This investment marks the first year of activity of both Intel and Enterprise Investors’ representative offices in Romania.

SIVECO Romania provides software solutions based on the latest technologies for large and medium-sized companies as well as for public and local administrations. Founded in 1992, the company has become the leading software developer and solutions provider in Romania, with revenues reaching US$30 million in 2004. According to the market research company International Data Corp., SIVECO Romania is the leader of the Romanian Enterprise Application Suite (EAS) market with 31% market share and of the IT services with 11% market share. In 2001, SIVECO Romania started the IT Based Educational System (SEI) - a complex program, aiming to support with IT&C tools the Romanian education system. This e-learning program labeled in 2001 by the European Commission as a best practice eGovernment solution is also nominee for the European IST (Information Society Technology) Awards in 2005. Over 1,800 clients from 30 countries use the integrated services provided by the 400 IT specialists employed by SIVECO Romania. The company has successfully developed business partnerships with the largest software houses worldwide, including Microsoft and Oracle and IT integrators including HP, IBM and Bull.

40% of projects developed by SIVECO Romania are in the eGovernment area, including Romanian Ministry of Education and Research, National Health Insurance House, National Agency for Human Resources, Ministry of Finance, Ministry of Communication and Information Technology, Ministry of Defense, Ministry of Labor and Social Protection, National Customs Authority and Ministry of Foreign Affairs, National Authority for Public Services Regulation. Among the largest customers are private companies like PETROM, Nuclear Plant of Cernavoda, Raiffeisen Bank, Citibank, Aerostar Bacau etc.

Commenting on the transaction, Mrs. Irina Socol, General Manager SIVECO Romania said: “We welcome the investment by Intel and EI. The upcoming EU accession of Romania and the necessity of adapting to international markets requirements make IT projects a priority for all Romanian organizations. This represents a great growth opportunity for the Romanian IT companies and a time for strategic decisions regarding international growth. We start on this road with great confidence, coming from our expertise and product portfolio and we are optimistic the funding will help us grow our business on local and international markets”, concluded Mrs. Socol.

Marcin Hejka, investment manager at Intel Capital, said: “With the accession of Romania to the EU a huge market opens up that demands the latest IT solutions in order to increase productivity and compete within the EU and beyond. We see SIVECO Romania as an important part of this development in providing software solutions to both public and private entities as well as foster innovation in Education. The importance of SIVECO’s role has been recognised by EC’s Information Society Technology award.” 

“SIVECO Romania is a fast growing company that has gained a solid reputation in Romania and on Western-European and American markets. Having Intel as a co-investor in this business, we are convinced that we will consolidate SIVECO’s leading position as a local IT services provider and will further expand on foreign markets “- said Dariusz Pronczuk, EI Partner and responsible for this investment.

Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, and semiconductor manufacturing.
For more information, visit www.intel.com/capital.

Enterprise Investors manages the largest group of private equity funds in Central and Eastern Europe, with capital provided by major private European and US insurance companies, pension funds, banks and other financial institutions.
Total capital committed to these funds exceeds $1.1 billion.
For more information, visit http://www.ei.com.ro/.