EI Sets Foot in Hungary With Netrisk.hu Deal

Warsaw-base Enterprise Investors has recently entered the Hungarian market with its first-ever investment in the eastern European nation. The new deal will be structured as a €23 million (HUF 6.4 billion) buyout for a controlling stake in Netrisk.hu, a 15 year-old insurance company founded by current CEO Zsolt Haraszti.

Enterprise has been looking at possible Hungarian targets for some time and has apparently been impressed by Netrisk.hu’s business model, sustained growth, and strong market position. The company has stated its commitment to expanding Netrisk.hu throughout the CEE region and also is looking for more opportunities in Hungary. Enterprise has been busy as of late, having picked up two Polish supermarket chains in the eight months preceding the Netrisk investment.

Netrisk.hu (www.netrisk.hu)
Netrisk.hu is Hungary’s leading online insurance concern dealing in compulsory car insurance, homeowners insurance, CASCO, and travel insurance. The company has weathered the competition of several other online insurance providers, continuing to increase market share in 2008 and 2009.

Netrisk.hu currently insures more than half of all Hungarians who purchase their car insurance online. The company puts the total number of registered site users at 770,000. With Netrisk.hu’s interactive website, potential customers can easily compare prices and services of other companies and purchase Netrisk.hu products instantly.

Enterprise Investors (www.ei.com.pl)
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.