Adecco pays seven million euros for IP Devel

Swiss human resources supplier Adecco purchased Romanian software company, IP Devel, following a transaction ranging between 6 and 7 million euros, said the Romanian company’s chairman, Bogdan Putinica, on Monday evening.
“Negotiations with Adecco lasted for nine months, yet, this wasn’t the only company to submit a takeover offer. This year we had three similar bids, from an American investment fund, as well as from two other companies headquartered in Israel and Romania,” Bogdan Putinica said.
The takeover agreement was signed this July, but the transaction has not been completed so far.
The Swiss company will establish a competence centre in Romania for embedded software and testing activities. Embedded software refers to applications not directly related to PCs, such as programming for microprocessors, mobile phones or cameras.
The representatives of the two companies say that the development of the centre will take five to ten million-euro investments by 2010. “The merger with Adecco will have IP Devel handle some of our key clients, which will boost the business volume. By the end of 2007, IP Devel will number nearly 170 employees and we project a turnover worth some six million euros,” said the Swiss company’s representative, Jean-Manuel Bullukian.
He added IP Devel’s acquisition was made after five other companies from European had been considered.
“We’ve acquired five companies worldwide since the beginning of the year, the last of which in Australia. We chose Romania for the good education and IT specialists’ quality. We are not planning further such acquisitions in Romania for the time being,” Bullukian added.
IP Devel hired Altria Capital and Popovici &Asociatii law firm as advisers for the transaction.
The company posted turnover amounting to 1.7 million euros in 2005, up 30% compared with the previous year.
The company’s representatives project 3.3 million euros increase in turnover for this year.
According to Romanian company’s chairman, IP Devel aims to post turnover worth 10 million euros by 2008, as well as to increase the number of employees from the current 130 to 600.
Putinica mentioned that the investments necessary to meet this target are set to amount to some nine million euros, by 2008.
“The investments will be made in personnel training services, service quality as well as infrastructure. Depending on the business trend, for the upcoming period we aim to open offices in other cities of the country”, added the company’s official.
IP Devel was set up in 2000 by Bogdan Putinica and Bogdan Daniel.
Swiss Group Adecco was founded in 1996, as a result of the merger of Adia and ECCO. It is present in Romania through Adecco Romania and Adecco Human Resources.

IP Devel
Established by Bogdan Putinica and Bogdan Daniel in 2000
Posted 1.7 million-euro turnover in 2005 and expects 2006 turnover to go up to 3.3 million euros
Aims to achieve 10 million-euro turnover by 2008 and increase the number of employees from the current 130 to 600
Investments required to increase the number of employees will amount to 9 million euros
by 2008