Romanian software development company Softbinator Technologies (ticker symbol CODE), has raised RON 6 million (EUR 1.2 mln) through a private placement and will list its shares on the Bucharest Stock Exchange’s AeRO market before yearend. The placement valued the company at EUR 12 mln and was heavily oversubscribed.

The company will use the money to accelerate its international expansion and open new offices in the US and Israel, acquire local competitors and launch new products. Currently, approximately 95% of the company’s revenues come from contracts with companies outside Romania, mainly the US and Israel.

“With the capital raised today, we will continue to grow fast, and we are confident that we will become a major player in the global software development services market,” said Daniel Ilinca, founder and CEO of Softbinator Technologies.

He added: “We want our access to the capital market to be a differentiator in the local software development landscape. This will give us the chance to raise capital to take majority holdings in other companies or even carry out M&A operations where we will pay with Softbinator Technologies shares, as long as our valuation indicators are significantly better than those of the acquired companies.”

Softbinator Technologies specializes in the design, development, and launch of innovative products with clients in the US, Europe (UK, Germany, Romania), the Middle East (Israel, Kuwait), and Asia (Singapore). The company currently has approximately 100 employees and collaborators who carry out their activity in the headquarters in Bucharest and Constanta.

In 2020, Softbinator Technologies recorded a turnover of RON 12.3 million (EUR 2.5 mln) and a net profit of RON 2.6 million (EUR 0.53 mln). For this year, the company estimates revenues of RON 16.2 million and a profit of RON 3.4 million. In the next four years, it targets to grow at a Compound Annual Growth Rate of 70%.

Softbinator’s private placement, managed by local brokerage firm Tradeville, was almost eight times oversubscribed on the day it was launched (September 28). Some 143 investors participated in the placement with orders totaling over RON 49 mln.

Before the private placement, the company’s existing shareholders sold about 6% of the existing shares to 35 individuals – employees and collaborators of the group and three legal entities, of which two investment vehicles from the Impetum Group and Autonom Group. The deal took place at RON 60 which was also the final price set for the private placement.

Following the private placement, Daniel Ilinca, founder and CEO, holds 46.26% of the company, Bittnet Systems holds 18.99% of shares, the management team consisting of Alexandru Dianu (COO), Marius Baisan (CTO) and Andreea Popa (CFO) owns 10.8%. Simple Capital, an investment vehicle controled by Andrei Pitis, holds 8.09%.

editor@romania-insider.com

(Photo source: the company)