Radu Georgescu's new deal: 4m euros for minority stake in Avangate

9 mar 2011 Ziarul Financiar

3TS Capital Partners investment fund, supported by Cisco, the world's biggest network equipment producer, paid 4m euros to take over a minority stake in Avangate, a provider of solutions and services for software electronic distribution, controlled by businessman Radu Georgescu, 43.

The investment from 3TS Capital Partners is part of Avangate's NASDAQ floatation plans for 2011. In the wake of the deal, Daniel Lynch, managing partner with 3TS, will become a member of Avangate's board.

This is the fourth deal through which Radu Georgescu sells shares in one of the companies he started from scratch to a multinational. In 2003, he sold RAV antivirus technology to Microsoft before selling a stake in the company that owns Axigen to several investors in 2007. Also, in 2010 he sold 83% in GeCad ePayment to Naspers South-African group.

Avangate in late 2010 had a team of over 72 employees in its four offices of Amsterdam, Mountain View, Taipei and Bucharest. The company plans to hire another 40 people this year, with the team set to reach 110 employees.