Epam secures $50 million for acquisitions
SOURCE: Company Press Release
DATE: May 20th, 2008
Mohit Soapbox:
This is an interesting transaction. With a # of VC’s, investors shying away from the services companies specially those in the IT/ITES space it is interesting to see an investment in a IT outsourcing firm. Deals in this space specially the mid size deals have been more of a distress sale and specialized deals ( companies buying expertise in CRM, SAP implementation etc..).
The Epam Company has announced to secure $50 million of investments from three global investors, which received minority stakes in the company. The given finance will be used for acquisitions and further development.
Epam Systems, the custom software vendor, has announced to secure $50 millions from three establishes investors that received minority stakes in the company in exchange. The size of investment is not announced.
The Renaissance Capital Group initiated the placement of investment. The leading investors are Renaissance Investment Management and Da Vinci Capital (Renaissance Capital and Renaissance Investment Management are affiliated with the Renaissance Group), the coinvestor is Euroventures Capital.
According to Arkady Dobkin, Epam Systems’ president, in 2007 the company grew by more than 50%. The company’s turnover substantially exceeded the targeted index of $100 million. According to CNews Analytcs, Epam’s revenue totaled 2.891 billion rubles (exchange rate: 23.72 roubles per $1, 19.05.2007) in 2007, which was a 37.7% growth as compared to 2006.
Renaissance Capital points out Epam is of greater interest to the investment communities of various countries that has been expected. Investment companies are necessary to support the development and compete with the ‘leading companies in the global market’.
The finance received will be spent to develop core competence and infrastructure, to train the personnel. Moreover, the company is considering strategic acquisitions ‘to provide its customers with new specialized services’.
Currently Epam’s development centers are located in Russia, Byelorussia, Ukraine and Hungary. In the CNews100: Russian Largest IT companies Epam ranks 34th.
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