Flamingo starts to look for acquisitions

Flamingo, the producer and distributor of electronic and IT&C products, is considering the acquisition of some of its competitors in the domain of IT retail, both domestically and in the Balkan region, in order to strengthen its business, announced the company chairman, Dragos Daniel Cinca, who is also the founder and currently main shareholder of Flamingo International.

The money needed will come from the sums raised in the wake of the company”s floatation on the Stock Exchange (around 12.4 million euros), however other financing mechanisms, including a loan, are not being ruled out, Dragos Cinca told Ziarul Financiar.

At the same time, the company”s future orientation will be toward the GSM segment, in a move away from home appliances, he said.

Company officials chose not to disclose the targets of the company”s acquisition campaign, though the chairman said small and medium companies from the retail segment were being considered.

“From my point of view, some spectacular things will happen,” said Dragos Simion, the former chairman of Flamingo Computers, who yesterday became the deputy chairman of Flamingo International responsible for mergers and acquisitions. His position was taken over by Eduard Samson, Flamingo Computers” deputy chaiman.

“I don”t think it is about major retail players. There are not many options here, unfortunately,” Laurentiu Popescu, head of the Bucharest office of International Data Corp. (IDC), told Ziarul Financiar.

“We are talking about IT&C retail companies with regionally well-consolidated activities, in Transylvania or Moldova,” added Catalin Patrasescu of SmartPoint.