Aquisition in the Romanian IT industry

Ness Technologies a global provider of IT solutions and services announced here that it has signed a definitive agreement to acquire Radix Company SA, a privately held leading provider of IT services and solutions based in Romania, at the purchase price of 4 million Euros. In addition, if Radix achieve certain performance goals over the next two years, the deal will increase with up to 3 million Euros.

I found interesting the statement of the President and CEO of Ness Technologies, Raviv Zoller which says that due to the highly-skilled local management team, the acquisition has low integration risks and will further complement their expansion to Central and Eastern Europe.“We have tremendous confidence in the local Radix management team and look forward to having them join the Ness team to gain a leading position in the Romanian market for IT services, which also has an abundance of highly-skilled IT professionals.�

While Ness Technologies is specialized in outsourcing and offshore solutions, this doesn’t necessary means that Radix will offer offshoring outsourcing services. I think the words that best describe Radix’s activities are on-shore outsourcing, providing IT solutions for several large Romanian corporations such as Electica (Romanian national electricity supplier), Hidroelectrica, OPCOM (Romanian electricity market operator), Mobifon (Romanian GSM service provider), Coca-Cola, IBM and CFR (the Romanian national railway company). The Romanian On-shore outsourcing sector is very likely to grow in the next years, as most of the large Romanian corporations still relies on internal IT departments part of an old state-based company structure and can have a better performance, if they are under an IT management team.