Enterprise Investors (EI) has added a seventh SME to the portfolio of its Enterprise Venture Fund I (EVF) with the investment of PLN 7.3 million in Euro-Tax.pl. The buy-out deal with the Polish income tax service gives EI a 25% stake in the company.
EI’s investment is seen by both parties as a means to strengthen the already dynamic position Euro-Tax.pl holds in Poland while also helping to further expansion within other CEE markets. Company officials have expressed a desire to bring Euro-Tax.pl to the main market of the Warsaw Stock Exchange by 2012.
Based in west-central Polish city of Poznań, Euro-Tax.pl is a tax consulting and financial services company specializing in the needs of Polish workers employed outside of their native country. Business is conducted almost exclusively through an online e-commerce platform.
Recovery of excess tax payments is the company’s main focus, having recovered more than PLN 100 million for some 40,000 customers over the last eight years. 2009 revenues were more than double those of 2008, coming in at PLN 9 million, and net profit was reported at PLN 2.3 million.
Enterprise Investors was established in 1990 after the implementation of the U.S. government-funded Polish-American Enterprise Fund, an investment vehicle designed to provide equity funding for the Polish private sector. The firm has invested in excess of €1.3 billion in more than 100 projects in the last 20 years, while raising more than seven funds worth a combined total of €1.7 billion.
Enterprise Investors invests mainly in private, medium-sized business with an average horizon of three to seven years. Portfolio companies receive EI support in strategic planning, financial decision-making, and professional recruitment. EI prefers to stay away from day-to-day operations. While Polish investments are EI’s top priority, the firm looks at other potential projects that will help expand its reach in Central and Eastern Europe.