First Romanian dotcom millionaires

First Romanian dotcom millionaires

The first Romanian dotcom millionaires are Liviu Dumitrascu (30) and Daniel Tatar (29), the two young people who, eight years ago, founded, currently Romania's largest online recruitment website, reported ZIARUL FINANCIAR.

Liviu Dumitrascu and Daniel Tatar sold 30% of the company to US-based investment fund Tiger Global Management, for 4.2 million euros. The transaction was completed at the end of last week, sources close to the dealings told ZF.

This is the largest domestic transaction involving an Internet company and one of the past year's biggest deals on the local IT&C market. The eJobs founders were assisted by law firm Tuca, Zbarcea & Asociatii and by consulting company Capital Partners, while the American fund was counselled by Biris & Goian. officials could not be contacted for comment by the time the story was ready for print.

The transaction closed with Tiger Global Management puts the value of eJobs, Romania's largest online recruitment website, at 14 million euros - a 32 multiple of the EBITDA (earnings before interest, taxes, depreciation and amortisation).

The evaluation of eJobs by a 32 multiple of the EBITDA, the highest of all the recent transactions concluded on the local market, takes into account the growth rate posted by the company and by the local online recruitment market, as well as their outlook for future years.

According to the 'Top transactions' yearbook published last year by Ziarul Financiar, the biggest mobile and fixed telephone operators on the local market were assessed using an EBITDA multiple ranging between 8 and 12.

eJobs last year saw its turnover grow ten times against 2005, up to one million dollars, and, for this year, the company estimates a 300% surge, to three million dollars.

Liviu Dumitrascu, one of the company's founders, had previously told ZF that he expected the business to soar in 2008 as well, by 2.5-2.8 times. Should these estimates prove accurate, the company could reach a turnover worth 7.5-8.4 million dollars next year.

Company officials did not provide details concerning the profit margin, but, according to data available on the Finance Ministry's website for 2005, the net profit margin accounted for more than 40% of revenues in that year. The profitability level was an important issue in the company's assessment process, especially as the 30% stake was bought by an investment fund, which generally targets an exit in three to five years.

eJobs ranks first on the local online recruitment market, with more than one million active CVs registered on the site. The company's main competitors are BestJobs (Neogen) and MyJobs (Netbridge). The online recruitment market is estimated at 4-5 million euros (5-7 million dollars) this year.

The business was established in 1999, when Liviu Dumitrascu and Daniel Tatar were still university students (in the Faculty of Cybernetics).

"When I watched 'Dallas' for the first time, I decided to become a businessman," Liviu Dumitrascu told BUSINESS Magazin, recollecting his debut in business.

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