Istanbul, Turkey, October 25, 2013
— IFC, a member of the World Bank Group, has invested $10 million
(20 million TL) in LOGO, the leading Turkish software company offering
integrated business applications, and committed $2.76 million (€2 million)
to a parallel equity co-investment with Mediterra Capital.
The LOGO investment will support the
firm’s recent acquisition of Netsis, a software developer based in Izmir,
along with plans to create more products and offer services to more customers.
LOGO offers an extensive variety of IT business systems known as Enterprise
Application Software (EAS), mainly targeting small and medium-sized enterprises
(SMEs) in Turkey. Logo also has a growing market share in Azerbaijan, Russia,
and other neighboring countries.
"IFC’s ability to provide long-term financing as an international
development organization with a global presence is of great importance
to us,” said Tugrul Tekbulut, the Chairman of the Board of Logo Business
Solutions. "We plan to expand significantly over the next five years
and consolidate our leading position in the SME segment to become the national
champion in the enterprise application software market. We look forward
to developing a long-term partnership with IFC to further support this
vision and increase our company’s competitiveness while offering more
efficiency and flexibility to SMEs."
Carsten Mueller, IFC Associate Director
for Turkey, said: “SMEs create nearly 80 percent of all jobs in Turkey
and are vital for economic development. This investment is in line with
our strategy to support SMEs by helping them have access to finance, improved
efficiency, and better services. This investment is also in line with our
strategy of supporting Turkish companies to become more competitive with
value added services and increase their reach in Turkey and the region.”
Murat Erkurt, Founding Partner at Mediterra,
said: “Mediterra focuses to do investments in the mid-cap to SME segment
of Turkey, with a focus on Anatolia. We have been able to do 5 such investments
in the last two years. Logo is a great example of such an investment, it
is the leader in its segment with a strong focus on SMEs and its services
add significant value to the Turkish economy. We are very excited about
the opportunity to partner up with Tugrul Bey and execute the vision to
become a national and regional champion.”
IFC has been investing in Turkey’s
private sector for nearly 50 years. In FY13, IFC delivered a record
$985 million in 20 projects supporting exporters, SMEs and MSMEs, renewable
energy, energy efficiency, cleaner production and energy security, health,
education, infrastructure, trade finance, and Turkish companies investing
in the region and beyond.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.
Established in 1984, Logo provides EAS
solutions to a wide range of sectors including retail, distribution, manufacturing,
tourism, technology and maritime. The Company sells its ERP solutions
through a network of approximately 500 business partners supporting over
1700,000 active accounts, equivalent to approximately 1,300,000 end users.
The business partners provide value added IT system integration and
support to SMEs and collectively employ approximately 3,750 employees.
For more information, visit www.logo.com.tr.
Mediterra Capital Management Limited
(“Mediterra”) is an independent private equity firm focused on investing
in Turkish companies and manages Mediterra Capital Partners I, LP. Mediterra
held the Final Close of its debut fund, Mediterra Capital Partners I, in
January 2013 at €164 million, backed by international institutional investors
such as EBRD, EIF, IFC, a member of the World Bank Group, FMO, DEG, Alpinvest
Partners and Siguler Guff & Company as well as leading Turkish industrialist
families and entrepreneurs as Limited Partners in the fund. IFC’s €15
million investment in Mediterra represents approximately 9 percent of total
commitments of €164 million by the limited partners.