Investment with R22
In 2018, R22, together with the Polish International Development Fund, financed an investment in three Romanian companies operating in the area of hosting and domains. The group acquired entities operating under the mxHost, xServers and Gazduire Web brands. This step allowed the group to gain a leadership position and a 25% share in the Romanian hosting and domain sector.
Fund involvement: 2,1 mln euro | Totaj project value: 6,5 mln euro
Company profile
R22 is a dynamically developing technology group. The group’s portfolio includes hosting services, domain sales, tools for creating and running online shops, multi-channel communication services, marketing automation solutions, software for the hospitality industry and telecommunication services.
Motivation of the company to expand abroad
For the R22 Group, the Polish domestic market is too small to ensure stable growth for the company. That is why the company has been consistently conquering new foreign markets. The strategic objective which guides the new investments is to acquire and consolidate operating companies and, consequently, to obtain a large share and a leading position in countries of expansion. The company wants to develop its activities primarily in Central and Eastern Europe. The R22 Group currently operates in Poland, Romania and Croatia.
Choice of expansion destination
Romania is a large, dynamically growing market. It is the second biggest central European country after Poland. It has a very large market, over 20 million people, with a significant middle class share. For R22 it was also important that the market was highly fragmented thus allowing the group to use its competencies and experience in merging entities. The reason for expanding in this destination was also the fact that there was no strong leader in the hosting sector in Romania. Local companies were willing to negotiate withR22. From a cultural perspective, it was also important that Romanians have a very good attitude towards Poles.
Benefits of expansion
The acquisition of three companies allowed the R22 Group to gain 25% of the local domain market.