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IFC Investment in LOGO to Boost Business Software Available to Turkey SMEs


In Istanbul:
Basak Ulgen
Phone: +90 212 385 3075
E-mail: BUlgen@ifc.org

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.

About IFC
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.

About Logo
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.

About Mediterra
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.

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