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EI celebrates Teta IPO

Enterprise Investors (EI) has floated the Polish IT company Teta on the Warsaw Stock Exchange (WSE). EI has sold part of its stake in the IPO for more than PLN26m ($7.7m), yielding a 2x investment multiple. Teta has raised an additional PLN5m ($1.2m) for investments in new ERP software products.

EI acquired a 54% stake in the business in 1998. WSE investors bought 3 million Teta shares, or 43% of the company. Investor interest was high, and the offer was 2.2 times oversubscribed. Post-IPO, funds managed by EI now hold a 37% stake in Teta.

Founded in 1997, Teta SA specializes in the design and production of ERP (enterprise resource planning) software for medium-sized companies, providing both pre-implementation consultancy and system implementation. In 2004, Teta generated revenues over PLN33m ($9m). Teta’s performance for the first 9 months of 2005 posted net income 30% up on the same period for 2004.

Rafa_ Bator, EI vice president responsible for the Teta investment, said: “Enterprise Investors has been present in Teta since 1998. Since our investment, Teta transformed itself into a fully customer-oriented business of the first rank. With the IPO successfully completed, Teta is able to continue with the implementation of its strategy, which assumes achieving a dominant 30% share of the mid-sized company ERP market in Poland. Taking into account the future growth of the company, Enterprise Investors decided to remain in the company as a large investor.”