Asesoft: Crisis has melted egos, opening the way for takeover talks

The market is very fragmented and fell by 30% in 2009, this is how Iulian Stanciu explains why he is looking at other transactions, as well, after absorbing a part of Flamingo’s distribution division. The 30% decline of the IT&C distribution market, and the difficult access to financing in a business where the cash flow is essential will accelerate the consolidation of the “fragmented” Romanian market this year, bringing around the table of negotiations entrepreneurs whose egos had prevented them from closing a deal in the past, says Iulian Stanciu, general manager and shareholder of Asesoft Distributie, one of the top players on the Romanian IT&C distribution market. Asesoft Distributie, which last year posted 127 million dollars in turnover, took over indirect distribution contracts of Flamingo retailer this month, after buying 50% in Combox distributor last year. In 2008, distribution operations accounted for a third of Flamingo group’s turnover, around 66 million euros, while for this year, the retailer expected a severe decline of this business, to around 24 million euros (104 million RON). However, Flamingo officials specified that the segment taken over by Asesoft accounts for a smaller share of the group’s business. “(…) The deal exclusively entails the transfer of indirect distribution contracts to Asesoft. Last year, these contracts accounted for 15% of the turnover (30 million euros).”