International IT company Ciklum Group Limited (one of the largest software developers in Ukraine) announced the acquisition of Czech software developer CN Group from Genesis Capital, one of the Central European private equity funds.
The deal will strengthen Ciklum’s market position in Central and Eastern Europe, as well as Germany, Austria and Switzerland, Ciklum said on Wednesday.
The amount of the deal was not disclosed.
As part of the agreement, Genesis Capital, which invested in CN Group in 2019, sold 100% of its shares in CN Group.
CN Group is headquartered in Prague, with five nearshore delivery locations in Central Europe. The company’s 360 digital technology specialists will become a powerful addition to the Ciklum team of more than 3,500 engineers, designers, product managers and data scientists.
“The combination of CN Group and Ciklum will build on each company’s long history of delivering high-impact products and platforms to clients across Europe and North America while opening new fields of opportunity for both. With delivery across the Czech Republic, Slovakia, Ukraine, Poland, Romania, and Spain, supported by a best-in-class employee culture and learning environment for engineering talent, the united companies will represent one of the largest digital transformation providers in the CEE region with global reach,” the report said.
CN Group has been delivering software engineering, IT consulting and mechanical design engineering for over 27 years. The company serves 62 international customers, including Procter & Gamble, Strabag, TF Bank, Bunte.de and FlatexDEGIRO, across more than seven markets.
Ciklum is a global IT company established in 2002 that provides software development and testing services, is engaged in innovative research and development (R&D), work with data sets (Big Data) and engineering consulting. It has offices in several countries, including Ukraine. In Ukraine, Ciklum is one of the largest IT companies, employing over 2,600 people.
Dragon Capital Investments Limited, a member of the Dragon Capital Group, and Dragon Capital New Ukraine Fund L.P. managed by the company led a new investment round and became minority shareholders in Ciklum, a global digital solutions company with major footprint in Ukraine.
According to a press release of Dragon Capital, AVentures Capital participated in the investment round and acquired a minority stake in the company.
The size of minority stakes of all three companies is not disclosed.
“We believe that ongoing global digital transformation will support increasing demand for IT solutions and services, and that Ciklum is very well positioned to capitalize on this sustainable trend. Founded in 2002 and headquartered in London, Ciklum has one of the largest footprints in Ukraine, great expertise and access to IT talent. We are enthusiastic about the opportunity to support one of the leading companies in the segment, which is run by great management and shareholders,” Managing Director, Co-Head of Private Equity at Dragon Capital Andriy Nosok said.
“We are excited to welcome Dragon Capital and Aventures Capital to our shareholder base. This investment will continue to propel Ciklum’s rapid growth in delivering cutting edge technologies to clients around the globe,” Chief Executive Officer of Ciklum Michael Boustridge said.
Dragon Capital group of companies was founded in 2000 and it is one of the largest on the Ukrainian investment market. It works in the field of direct investment and financial services, provides a full range of investment banking and brokerage services for corporate and private clients.
Dragon Capital New Ukraine Fund L.P. was created in November 2015. Dragon Capital manages the funds. Soros Fund Management (SFM) acts as the co-investor in the fund.
Ciklum is a leading global digital services and software engineering company founded in 2002. Ciklum provides services to design and test software, it is involved in innovative research and design, works with Big Data and engineering consulting services.
AVentures Capital was founded in 2012. It invests in IT companies at various stages of their development.
