"There was me, the representatives of Ness Technologies and a flip chart in a room. One of them wrote a formula on a piece of paper that involved several variables (employees, the company''s financial status etc.). A series of extremely rigorous calculations were made and in the end he drew a line and wrote the total. I said yes and that was it."
This is what Gabriel Mardarasevici, former owner of Iasi-based company Radix, had to say about the negotiations for the takeover of his company by American firm Ness Technologies. The transaction was worth 9.1 million dollars (7 million euros). Ness will first pay 5 million dollars (3.8 million euros) and, if Radix manages to achieve certain performance goals over the next two years, will pay a further 4.1 million dollars (some 3 million euros).
The first steps towards the transaction were taken a year ago. "I remember getting an email from Ness Technologies inviting us for an exchange of experience. In fact, the American group was no stranger to us. We had had contact with them over the course of time through various symposiums and international fairs," said Mardarasevici.
One month after the visit by the people from Iasi to the Ness headquarters, a group of auditors came to Iasi to appraise the company. They stayed for more than four months and checked every single square metre of the company.
"As soon as the audit result came out we sat down for talks," the former owner said.
The acquisition will become final before April 10, and Mardarasevici will become Ness Romania''s new chief executive officer.
"This money is not changing me at all. Basically I have no wish to make as much as possible. I am 35 now and I have a lot to do ahead of me. I have a lot of work to do and I feel really connected to what is going on here and this is why I may have a very long a career with Ness if things go well," Mardarasevici confessed.
This does not necessary mean the money he will get from the takeover will simply sit in the bank.
"Firstly, I want to continue and complete my tourism investments. I have a hotel complex in Vatra Dornei, which I hope will become operational this summer," Mardarasevici said. He did not specify the value of the investment.
When asked what he would have done with the money if he had had it in the early 1990s, he answered, "The only factory I would have immediately bought for cash would have been the edible oil factory Unirea Iasi (now held by US-based Bunge Corp).
"At that time products like edible oil and sugar were still not available in sufficient amounts. You can guess how any amount of edible oil would sell like hot cakes. It was a huge chance to make lots of money. That is not an investment to overlook even today."
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
