Q: Less than half a year after a significant capital increase for a listed IT company on the Romanian Stock Exchange, how do you see it now? What makes you confident?
Mr. Voicu Oprean: The capital increase has been a major strategic decision for AROBS, and we are happy to have the European Bank for Reconstruction and Development among our institutional investors. Our capital increase attracted 8 local and international institutional investors. It remains the largest capital increase for a public company in Romania in the IT sector and the first capital increase of a company in this industry where institutional investors subscribed a significant majority of the capital.
Our growth strategy, which includes acquisition, expansion, greenfield investments, and R&D, will deliver results and stabilize our footprint in the technology market.
Q: The capital increase in 2024 might be the milestone project this year. Or is it another one? What milestone project do you expect for 2025? What’s your view on ‘’going abroad’’ in terms of M&A?
Mr. Voicu Oprean: Indeed, the capital increase remains the main milestone for 2024. We will continue implementing our strategy, and as for the M&A activity, we have several potential acquisition targets, with an aggregate turnover of approximately 18.4 million euros and an approximated EBITDA margin for 2023 in line with that of the group.
The targets operate in software services, fleet management software products and business solutions from Romania, Germany, Austria, Switzerland, Switzerland, Turkey, the UK, and Serbia.
AROBS is one of the few and the first Romanian technology companies acquiring outside Romania; remember, we started in 2018 by buying CoSo by AROBS in the Netherlands and Belgium. When we acquire companies in our target markets and industries, we set a strong foothold in those markets. We gain increased market access and competitive advantages. Additionally, it allows us to diversify the services or products and gain access to local expertise.
Q: What are the arguments for a solid demand for your products to be resilient in a possible downturn of the economy?
Mr. Voicu Oprean: Our software products – telematics (TrackGPS by AROBS, SASFleet), business optimization suite – Optimall by AROBS and Softmanager by AROBS, TrueHR and dpPayrol for HR management - are designed to help businesses become more efficient and digitally agile, which is even more vital during economic downturns. Companies are pressured to cut costs and improve operational efficiency, and digital tools like ours offer them exactly that. The companies in Central and Eastern Europe and Asia, where TrackGPS by AROBS is very strong in the fleet management market, need to comply with sustainability standards to monitor their emissions from logistics and transportation, and we are 100% ready to support their endeavor to lower the carbon footprint.
Q: From your view, let’s go to what other indicators suggest: when we look at the consolidated data for the Romanian economy (half-year), we still see some growth (0.7% compared to H1 2023) and some halt for the IT sector. After several years of progressive development, IT seems stuck at 7% of GDP with no growth in the last 12 months. What are the main reasons for the sudden break?
Mr. Voicu Oprean: The IT sector’s contribution to GDP slowdown can be attributed to the global market turbulence. Many companies have paused or slowed their digital transformation efforts. At home, we are impacted by the tightening of fiscal and monetary policies, including the withdrawal of tax exemptions for specific industries. What affects us directly is the need for more stability anchors; the IT industry feels no support from the Romanian state.
I am referring to the support other nations give to industries with a geostrategic impact; all the business literature, European policies, and the international press consider technology as a geostrategic stronghold.
In the broader global context, the EU ranks third in terms of competitiveness and innovation in technology. Romania ranks last in terms of innovation in Europe.
We have administrative challenges, instead, in accessing R&D incentives; for example, the fees for consultants specialized in R&D investment recovery are 20% of the amount recovered from corporate tax (we can recover a maximum of 50% of the investments made). Another example is the payroll tax exemption for experts involved in R&D projects, which is only 10%.
Despite this, the long-term outlook for IT remains positive as demand for innovation will only grow, especially in cybersecurity, automation, aerospace, defence, AI, and IoT.
Q: Are you confident (or not) that from a sudden break, the IT sector will not go into reverse? In your view, what is the state of the IT Sector and why?
Mr. Voicu Oprean: I remain confident that the IT sector will recover from this slowdown and continue to grow in the long run. We are in a cyclical phase right now, but the fundamentals of the IT sector are strong. Every industry is becoming more digital, and this trend will continue accelerating. The key is to adapt, innovate, and receive strong support for R&D projects so that companies like AROBS can provide cutting-edge solutions relevant to future needs.
Q: To summarize, what are the challenges, innovations, and future prospects for AROBS and the IT sector in Romania? What will be the main drivers of growth?
Mr. Voicu Oprean: The main challenges we face are global economic uncertainty and the need for more support from the national level. However, innovation will drive the next wave of growth for the IT sector. For AROBS, we are focusing on expanding our portfolio of solutions and pursuing more acquisitions to enhance our international presence. The main drivers will be the digital transformation trends and the need for intelligent, scalable solutions in all industries.
We are just scratching the surface of what technology can do, good or bad, and we are addressing challenges by leveraging AI and Cybersecurity for our clients. The next decade will bring innovations that will reshape industries and societies. AROBS will definitely be a part of this future, and we will create value for our partners, employees, shareholders, and society.
Q: We are very curious about the effect of extra-EU funds (like PNRR) on your business activity. Did the EU money have an effect (and how much) on the IT market in general and for AROBS in particular?
Mr. Voicu Oprean: The PNRR and other EU funds have positively impacted the IT sector by promoting digitalization across different sectors, especially in public administration and infrastructure projects. While the full impact of these funds is still unfolding, we hope they will drive further demand for IT services in the coming years. We plan on building more R&D projects and applying for funding. It’s a valuable capital injection that could design the future in many industries we are part of. On the other hand, I must point out that we have projects stuck on payments, some with European funding.
Q: What might be the setback for your industry that you cannot fully anticipate? Some ad-hoc fiscal measures? Some downward winds from the global market? How can you protect the company you founded from being vulnerable to things on the domestic market?
Mr. Voicu Oprean: Ad-hoc fiscal measures are always a concern; unfortunately, we have had plenty of them in recent years. They represent a full-on risk for business predictability. Global economic factors like inflation, interest rates, or geopolitical instability will impact the tech industry. To mitigate these risks, we build a diversified portfolio of services, products, clients and regions and maintain a flexible business model that allows us to be agile.
Q: You are one of the few entrepreneurs teaching the students. What are the three main lessons Romanians should learn from entrepreneurship? In your view, what discipline is more important than math or programming for future jobs?
Mr. Voicu Oprean: The three main lessons are: 1) Be resilient because setbacks are part of the journey, but your determination will make the difference. 2) Stay curious—always keep learning and adapting to new trends. 3) Focus on teamwork—success is built with people, not just individual effort. As for disciplines, I would highlight creativity and problem-solving skills. They are not more important than maths and programming, but they create the foundations for continuous innovation.
You can also find the full interview in the document below:
