CEE Software Development: M&A Report 2021

Comprehensive coverage of M&A activity in Software Development (IT Outsourcing) industry in CEE region YTD 2021

1. CEE software development:
M&A report 2021
October 2021
CEE software development:
M&A report 2021
October 2021
CEE software development:
M&A report 2021
October 2021

2. CEE Software Development M&A in 2021: Executive Summary
2
Key messages of 2021 YTD
Public companies share
price is soaring
•Peak stock performance for public companies with significant CEE presence (record high
revenue y-o-y growth & ~x2 up multiples for leading CEE public companies) as global economy
grows & demand for digitalization and IT services surges post Covid-19 suppression
M&A activity is on the rise,
on track to x2
•More deals in 1H 2021 than during the entire year of 2020, which guarantees a record M&A count
in FY 2021 for the CEE region
Multiples’ inflation•High demand for inorganic growth in addition to record high public companies’ performance
drives purchase multiples for private companies. It is sellers’ market now
Trend for consolidation
•Most mid to large companies have hundreds or thousands of open positions. There is a war for
talent out there and we see significant double digit increase in salaries for engineers
•In such a market, stronger players might demonstrate extraordinary performance while weaker
companies might struggle
M&A / IPO play •Well funded CEE companies, who are preparing for IPO/liquidity events, continue their vector for
expansion through M&A in the CEE region with most deals still in progress, potentially to be
announced in the next 3-6 months

3. 3
-100%
0%
100%
200%
300%
400%
500%
600%
Oct, 2018Mar, 2019Jul, 2019Dec, 2019Apr, 2020Aug, 2020Jan, 2021May, 2021
505%
162%
450%
548%
68%
20%
67%41%
H1 2021*YTD**Since Oct,
2018**
Globant4%76%548%
[Endava]54%146%505%
[Epam]47%93%450%
[Grid Dynamics]22%233%162%
Alten22%95%68%
S&P50016%28%67%
Devoteam14%29%41%
Cognizant-12%15%20%
*January 1 –June 30, 2021
**Data as of August 26, 2021
Record stock performance for public
companies as market bounces back after
Covid-19 (1/2)
During 2020-2021, companies with delivery in CEE
(Endava, Epam & Grid Dynamics) on average grew
faster than those in different geographies
Source: Yahoo Finance, AVentures Capital
[ ]
–companies with significant
delivery
in CEE
Globant
Endava
Epam
Grid
Dynamics
AltenS&P500
Devoteam
Cognizant

4. Record stock performance for public companies as market bounces
back after Covid-19 (2/2)
4
Company6M y-o-y revenue CAGR, %GM, %EBITDA, %EV/SEV/EBITDA
Epam24%34%17%9.2x54.7x
Grid Dynamics26%40%17%6.3xNegative
Endava27%34%20%14.1x80.1x
AVERAGE 9.9x67.4x**
MEDIAN 9.2x67.4x**
Globant32%38%15%8.5x51.2x
Alten8%10%11%1.5x18.6x
Devoteam12%12%14%1.1x9.5x
Cognizant4%37%16%2.1x11.7x
Accenture*7%32%19%4.1x22.0x
Perficient14%38%14%4.8x27.0x
Zensar2%27%19%1.7x8.5x
Wipro8%36%23%4.6x20.0x
Tech Mahindra7%33%19%2.2x12.0x
Infosys13%34%28%6.1x22.3x
AVERAGE 3.7x20.3x
MEDIAN 3.1x19.3x
*As of August 31, 2021
** Excluding Grid Dynamics negative EBITDA
CEE
Rest of the world
Source:AVentures Capital, Yahoo Finance, WSJ

5. 360
CEE, Czech Republic
10
+
Aug. 2021
375
Romania
9
+
Oct. 2020
400
Poland
8
+
Jul. 2021
400
Ukraine
7
+
Dec. 2020
+
636
Romania
6
+
Nov. 2020
710
Romania
5
+
Aug. 2021
1,100
Belarus
4
+
Mar. 2021
1,200
Ukraine
3
+
May 2021
4,000
CEE
2
+
Dec. 2020
+
20,000
CEE
1
+
Mar. 2021
Top-10 largest publicly disclosed deals during the last 12 months
5
Target
Buyer
Target’s # of EE and location
Source:AVentures Capital*Ranked by size of delivery in CEE

6. What most large acquirers
seek for…
6
1
Mid-market and/or enterprise clients
with long term contracts
Above the market average 30+% y-o-y
consistent revenue growth
Company’s ability to retain and win new
large contracts, so most of the revenue
is recurring
High EBITDA (over 15%) and Gross
Margin (over 40%)
Founders’ willingness to stay for 2-4
years post acquisition
Strong recruitment function able to close positions in
the heated market
2
3
4
5
7
6Distinguished employee culture resulting in solid
talent retention
Other strategic rationales might play a role depending
on an acquirer: type of delivery, technology
specialization, industry vertical, business model etc.
8

7. Vertical capabilities
•Acquisition of new verticals or deepening of existing capabilities
Deal example: Hitachi –Global Logic, 2021 (acceleration of social
infrastructure transformation)
Delivery diversification
•New delivery geographies to diversify market / political risks
•Delivery in new countries/regions enables to tap into talent pool
Deal example: Grid Dynamics –Tacit Knowledge, 2021 (UK, US,
Mexico, Moldova)
Client acquisition
•Acquisition of new clients or enhancement of current client profile
•Small players can be attractive depending on their client profile
Deal example: Accenture –Trivadis, 2021
Scale
•Enables companies to bid for larger projects
Deal example: Astound Commerce –MarketForce, 2021
We expect established players to
continue consolidating a fragmented
market
Technical / language capabilities
•Enhancement of tech teams is faster via M&A
than through organic growth
Deal example: OSF –Werise, 2021
And key strategic rationales
driving M&A roll-on strategy
7
Inorganic growth is a way for established
players to expand capabilities, client portfolios
and scale

8. 5
2122
32
2730
38
2015201620172018201920202021*
Selected PE funds active in the region
A growing number of strategic players active in acquisitions
Count of M&A deals announced in Ukraine,
Poland, Belarus, Romania in 2015-YTD 2021
Source: AVentures Capital
8
Attractiveness of the software development outsourcing
industry persists
Despite low M&A activity in Belarus, there were more deals
during 9 months of 2021 in CEE than during any other year
Many more deals are in progress to be announced in the
next 3 -6 months
Result: consistently high M&A
activity in the region in 2019 -2021
*YTD

9. Industry leaders expand through
M&A, pursuing IPO / exit play
At least 5 well-funded CEE players with revenue
from US$50M to US$100M+ are expanding
through M&A with the aim of IPO / exit play
Our insights into recent private companies
deals demonstrate that implied EV / Revenue lies
in 1x-2.0x range and EV / EBITDA in 6.0x-15.0x
range. There are, however, exceptions with
transactions at higher multiples
9
Examples
Public companiesreceive highest multiples with
some reaching x5-11 EV / Revenue and up to x80
EV / EBITDAvs multiples we observe with private
companies. Thus, public companies have stronger
financial incentives to pursue M&A
Germany
Argentine
Merged from:
Krakow
Note: “Ukraine / Belarus” or “Lviv” –main delivery locations
Belarus / Russia
Russia / Ukraine /
Poland / Argentine
Lviv
Ukraine / Belarus
/ Poland / Spain
Germany
Netherlands /
Ukraine /
Germany
Lviv
Germany
Moldova / UK /
Mexico / USA
Czech Republic

10. Salaries inflation for Software
Engineers in CEE
10
$700
$1830
$600$800
$1900
$590
$2000
$3255
$2700
$2200
$3820
$2500
$3610
$4330
$3125
$4000
$5120
$3500
UkrainePoland Belarus
Middle SEMiddle SEMiddle SESenior SESenior SESenior SE
'20'20'20'20'20'20'20'20'20'21'21'21'21'21'21'21'21'21
Junior SEJunior SEJunior SE
Source: dou.ua, salaries.dev.by, mycompanypolska.pl, AVentures Capital
On average the salary of the Software Engineer in CEE grew
by at least 10% since June 2020. Biggest inflation is seen in
Poland and Ukraine for Senior tech talent
Amid surging demand for SoftDev services, the salaries of engineers continue to climb with the most significant increase for
senior tech talent. Most of the mid to large companies have hundreds of open positions
Net salaries, US$

11. Selected CEE Top-50
Largest IT service players with delivery in CEE
An increasing number of companies cross the US$25m in revenue mark. Out of 55* largest IT service companies, 11 make
over US$100m in revenue and another 7 exceed the US$ 200 mark
Estimated annual revenue, US$
25-50 m 50-100 m100-200 m>200 m
Illustrative
*Includes companies with significant presence in CEE

12. Appendix 1: deals table
2015 –YTD 2021

13. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2021Astound Commerce1200 (2021)- RLH Equity Partners
2021Intellica Group40 (2021)- Digicode
2021CN Group360 (2021)- Ciklum
2021Polyteda Cloud32 (2021)- Silvaco
2021Tacit Knowledge180 (2021)- Grid Dynamics
2021GlobalLogic15868 (2021)9600Hitachi
2021X1 54 (2021)- Globaldev Group
2021Cloudfresh50 (2021)- InSoft Partners
2021MarketForce50 (2021)- Astound Commerce
2021IdeaSoft85 (2021)- Sigma Software
2020Archer Software125 (2021)- Cprime, Alten
2020S-PRO 160 (2021)- SARS Capital
2020Daxx400 (2021)- Grid Dynamics
2020Ciklum3120 (2021)- Recognize Partners
2019Aducera200 (2020)- Beetroot
2019Grid Dynamics1200 (2020)- IPO
UKRAINE* (1/3)
One can estimate a range for deal value with indicative median annual
revenue per engineer of US$40-60K and deal range of x1-2 EV /
Revenue
13*Deals include companies with significant presence in Ukraine both on sell side and buy side

14. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2019Acceptic150 (2020)- Yael Group
2019Rozdoum40 (2020)- InSoft Software
2019Rademade60 (2020)- InSoft Software
2019Logicify20 (2020)- DataArt
2019Ciklum3800 (2020)-Dragon Capital, AVentures
Capital
2019DynamoDevelopment40 (2020)- SeriesOne
2019Luxoft12900 (2019)2000DXC Technology
2018Adyax350 (2018)- Smile
2018CoreValue385 (2018)- IT Kontrakt (Avenga)
2018Intellias1220 (2018)- Horizon Capital
2018Applikey160 (2019)- SSA
2018DataArt2500 (2018)- Da Vinci Capital
2018WebCodium12 (2019)- Apriorit
2018GlobalLogic12000 (2019)960Partners Group
2017Stanfy20 (2017)- IntellectSoft
UKRAINE (2/3)
14

15. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2017GlobalLogic12000 (2019)- CPPIB
2017IntroPro500 (2017)28 Luxoft
2017Grossum57 (2017)- The APP Solutions
2017Grid Dynamics1000 (2018)118 ASL
2016Lohika700 (2016)- Altran
2016CoreValue385 (2018)- InSoft Capital,
AVentures Capital
2015Ciklum3500 (2019)- Soros Funds
UKRAINE (3/3)
15

16. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2021Skyrise.tech80 (2021)- Etteplan
2021Evertop50 (2021)1 TenderHut
2021Polidea70 (2021)- Snowflake
2021ValueLogic80 (2021)- Software Mind
2021SNP Poland400 (2021)- All for One Group
2021Ammeon200 (2021) intive
2021Pro4People18 (2021) Star
2021PolSource308 (2021)- EPAM Systems
2021Software Mind160 (2021)30Enterprise Investors
2021Delv Global13 (2021)- Vox Financial Partners
2021Veracomp257 (2021)- Exclusive Networks
2020Maisen/a - ITMagination
2020Cervi Roboticsn/a - Dronehub
2020Craftware86 (2021)- BlueSoft (Orange)
2020Sage Group PLC177 (2021)91Mid Europa Partners
2020Codewise158 (2021)36 CentralNic
2020SimplicITy42 (2021)- Ricoh
POLAND* (1/4)
16*Deals include companies with significant presence in Poland both on sell side and buy side

17. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2020Meelogic300 (2020)- GlobalLogic
2019Core Servicesn/a - Astek Group
2019Prosoftlab14 (2019)- Astek Group
20197ninjas12 (2019) Netguru
2019Olsoft n/a - TenderHut
2019Javeo Software25 (2019)- TenderHut
2019BlueSoft650 (2019)50 Orange Polska
2019Sevenval200 (2019)- Avenga
2018ORBA 90 (2018)- Lingaro
2018Bitcraft41 (2018) Netguru
2018Intive1600 (2018)100Mid Europa Partners
2018ORBA 80 (2019)- Lingaro
2018Fast White Cat100 (2019)0.6SARE S.A.
2018Order of Code15 (2019)- TenderHut
2018Appchance37 (2019)0.3 R22
2018Nexelemn/a - Virtus Lab
2018Goyello120 (2018)- Aspire Systems
POLAND (2/4)
17

18. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2018Solid Brain200 (2018)- IT Kontrakt
2018GSW Technologiesn/a - TenderHut Group
2017ReeWise11 (2019)- Exadel
2017itWORKSn/a - Euvic, 3S Group
2017Coders Center75 (2017)- SoftServe
2017iNTENCE100 (2017)- Intive
2017IT Kontrakt1300 (2016)33 Oaktree Capital /
Cornerstone Partners
2017FDV Solutions100 (2017)- Intive
2017Sensinum16 (2017)- Virtus Lab
2017Qburst Polandn/a - TenderHut
2017LIT n/a - TenderHut
2017Edisonda30 (2017)- Grant Thornton Poland
2017Vorm n/a - Netguru
2016AKME Softwaren/a - Exadel
2016SMT, BLStream, Kupferwerk
merged into Intive1200 (2016)- Enterprise Investors
2016DCC Labs70 (2016)7 SeaChange
POLAND (3/4)
18

19. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2016Grand Parade200 (2016)16.6William Hill
2016Operations of Ericpol in Poland and
Ukraine2300 (2016)- Ericsson
2016Sigmapoint12 (2019)- Grand Parade
2016LemonTean/a - TenderHut
2016REC Global500 (2016)- GlobalLogic
2016ProService350 (2016)- Oaktree Capital /
Cornerstone Partners
2016Ardeo14 (2019)0.05Venture Inc
2016Outbox250 (2021)- PwC
2015SMT Software700 (2015)38Enterprise Investors
2015El Passion Next59 (2019)- Daftcode
POLAND (4/4)
19

20. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2021Zipper Studiosn/a - Fortech Group
2021Software Development Europe150 (2021)- 3Pillar Global
2021ITPrepared50(2021)0.7Bittnet (BNET)
2021Relation1n/a - OSF Digital
2021CoreBuild and Core Technology
Services20 (2021)- Wirtek
2021Tellence145 (2021)- Orion
2021Trivadis710 (2021)- Accenture
2021Paladin Groupn/a - OSF Digital
2021Werise44 (2021)- OSF Digital
2021Adept Groupn/a - OSF Digital
2021LEVVEL LLC172 (2021)- Endava
2021Pet Minuta157 (2021)- Endava
2021Gemini Solutions119 (2021)- ThoughtWorks
2020SoftOne Romania45 (2020)- Orosimo Software
2020Cognetikn/a - Brillio
2020Tremend Software Consulting375 (2021)4.2 EBRD
ROMANIA* (1/4)
20*Deals include companies with significant presence in Romania both on sell side and buy side

21. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2020Zenitech209 (2021)- Sovereign Capital
2020Whyttest74 (2021)- Testronic
2020Comtrade Digital Services316 (2021)- Endava
20203Pillar Global1052 (2021)- CIP Capital
2020Tiempo Development280 (2021)- 3Pillar Global
2020Isthmus Software118 (2021)- 3Pillar Global
2020Citymesh58 (2021)- Cegeka
2020iQuest Group660 (2021)- Nagarro Holding
2020Udev 6 (2021)- Zitec
2020Metro Systems Romania S.R.L1300 (2021)- Wipro
2020Cyber Smart Defense12 (2021)- Stefanini
2020Quantic Lab218 (2021)5.6Embracer Group
2020PitechPlus222 (2021)- Webhelp
2020Accesa636 (2021)- Ratiodata
2019Successyou25 (2020)- OSF Global
2019Blueleaf13 (2020)- OSF Global
ROMANIA (2/4)
21

22. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2019Soul Ecommerce15 (2020)- OSF Global
2019Vauban266 (2020)- GFI
2019PitechPlus240 (2020)- Webhelp
2019Architected Business Solutions32 (2020)- Totalsoft
2019BeeSpeed100 (2020)- ZF
2019UCMS Romania14 (2020)- AROBS
2018iQuest580 (2019)- Allgeier
2018BSS-ONE Dueenne80 (2018)0.8Right of Reply
2018648 Groupn/a - Tremend
2018SAS Grupn/a - Arobs Transilvania
2018CoSo 10 (2018)1 Arobs Transilvania
2018OSF Global900 (2019)- HSBC, BDC Capital,
Salesforce Ventures
2018Softvision2850 (2018)478Cognizant
2018Architected Business Solutions50 (2018)- Logo Software
2018Dendrio Solutions52 (2021)5.7Crescendo International
2018SkyShield Magyarorszagn/a - Arobs Transilvania
ROMANIA (3/4)
22

23. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2017MindMagnet24 (2019)- Pitech Plus
2017It Six140 (2019)- QuEST
2017Zitec160 (2017)2 eMAG
2016ISDC300 (2016)- Endava
2016Software Paradigms Internationaln/a - Softvision
2016LaunchPodiumn/a - Qualitance
2016Kepler-Rominfo250 (2016)- Alten
2016Inotec Plusn/a - Zitec
2016TotalSoft400 (2016)30 Logo Software
ROMANIA (4/4)
23

24. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2021White-Hat 73 (2021)- EPAM Systems
2021CORE SE91 (2021)- EPAM Systems
2021Just-BI 55 (2021)- EPAM Systems
2021Exadel1100(2021)- Sun Capital
2020Ricston31 (2021)- EPAM Systems
2020Deltix80 (2020)- EPAM Systems
2019Naya Technologies76 (2020)- EPAM Systems
2019Competentum Group80 (2020)- EPAM Systems
2019Test IO283 (2020)17.3EPAM Systems
2019OCSICO~90 (2020)- ScienceSoft
2018Solbegsoft250 (2018)- Helmes
2018Itransition2000 (2018)- Baring Vostok
2018Continuumn/a - EPAM Systems
2018TH_NK120 (2019)- EPAM Systems
2017Softline3500 (2019)9 Zubr Capital
BELARUS* (1/2)
24*Deals include companies with significant presence in Romania both on sell side and buy side

25. YearTargetEst. # of employeesTransaction Value, US$ mlnBuyer
2017Cactussoft111 (2019)- Litussoft
2017PointSource76 (2017)- Globant
2016Softline3500 (2019)36 Da Vinci Capital
2016Dextrys300 (2019)- EPAM Systems
2015NavigationArts90 (2019)- EPAM Systems
2015Alliance Global Services 1100 (2015)45 EPAM Systems
BELARUS (2/2)
25

26. Appendix 2: consolidation /
IPO way of the largest CEE
players

27. Revenue
US$ 557m (TTM)
US$ 155m
(Q3 FY21)
EBITDA
US$ 87m (TTM)
US$ 32m
(Q3 FY21)
Revenue CAGR, 2015-20
33% y-o-y
# of engineers
8,127
(Q3 FY21)
Delivery geography, Q3 FY21
North America: 29%, Europe: 25%, United Kingdom: 43%, Rest
of the world 3%
Revenue % by vertical
Payments and financial services: 53%,
tech, media and comm-s: 27%, other 20%
(Q3 FY21)
2014201520162018
2014. Alpheus Solutions (DE/UK)
2015. PSTECH (RS);
Nickel Fish Design (US)
2016. ISDC (RO, BG)
2018. Velocity Partners
(AR, UY, CO, VE)
2018. IPO on NYSE.
2019
2019. Intuitus Limited (Scotland);
Exozet (DE)
Acquisitions
PE / IPO funds
attracted
2020
2020. Comtrade Digital
Services (SI, RS, BA)
2021
2021. Pet Minuta (HR, US);
LEVVEL LLC (US, MX)
2018. IPO
on NYSE

28. Revenue
US$ 3 bn (TTM)
US$ 881m
(Q2 FY21)
EBITDA
US$ 512m (TTM)
US$ 146m
(Q2 FY21)
Revenue CAGR, 2015-2020
24% y-o-y
# of engineers
42,800
(Q2 FY21)
Delivery geography
North America: 59.8%, Europe: 33.0%, CIS: 4.3%, APAC: 2.9%
Revenue % by vertical, Q2 FY21
Business Information & Media: 18%,
financial services: 22%, software & hi-
tech: 18%, travel & consumer: 20%,
healthcare: 10%, emerging 12%;
PE / IPO funds
attracted
Acquisitions2003200420062008200920102012
2010. VTB Capital
2006. Vested
Development
Inc. (RU)
2003. Lintec
Project (BY)
2004. Fathom
Technology (HU)
2008. B2BITS Corp. (US/UA);
PlusMicro (KZ)
2009. Rodmon
Systems (US/BY)
2007. Spline
Software (UA)
2010. Instant
Information
(US/BY)
2012. Thoughtcorp (CA);
Empathy Lab (US)
2012. IPO on NYSE.
2006. Siguler
Guff (US)
2007
2008. Renaissance Investment
Management;
Da Vinci Capital;
Euroventures Capital2012. IPO on NYSE
1/2 *
*to be continued on the next slide

29. Delivery geography
North America: 59.8%, Europe: 33.0%, CIS: 4.3%, APAC: 2.9%
Revenue % by vertical, Q2 FY21
Business Information & Media: 18%,
financial services: 22%, software & hi-
tech: 18%, travel & consumer: 20%,
healthcare: 10%, emerging 12%;
# of engineers
42,800
(Q2 FY21)
Revenue
US$ 3 bn (TTM)
US$ 881m
(Q2 FY21)
Revenue CAGR, 2015-2020
24% y-o-y
EBITDA
US$ 512m (TTM)
US$ 146m
(Q2 FY21)
Acquisitions201420152016
2014. NetSoft (US);
Great Fridays (US);
Ozsoft (AM);
GGA Software Services (RU);
Joint Technology
Development (CN);
2015. NavigationArts (US);
Alliance Global Services (US)
2016. Dextrys (CN);
InfomatiX (HU)
2018. Continuum (US);
TH_NK (UK)
2012. IPO on NYSE.
20182019
2019. NAYS (ISR);
Competentum Group (RU, BY);
test IO (US, DE, UA)
2020
2020. Ricston (MA, UK, ES)
2021
2021. Just-BI (NL);
White-Hat (ISR);
CORE SE (DE);
Seven4N (CO);
PolSource (PL, US)
2/2

30. Revenue
US$ 143m (TTM)
US$ 47.7m
(Q2 FY21)
EBITDA*
US$ -2.1m (TTM)
US$ 2.5m
(Q2 FY21)
Revenue CAGR, 2015-20
22% y-o-y
# of engineers
2,510
(Q2 FY21)
Delivery geography
Russia, Ukraine, Poland, US
Revenue % by vertical, Q2 FY21
Tech, media, and telecom: 34%, retail:
27%, finance: 9%, CPG/Manufacturing:
20%, other: 10%
2016
2016. ASL acquires
Grid Dynamics
2019. Raised US$15M from BGV
2019. Acquired by ChaSerg
Technology, a shell NASDAQ
company
2020. IPO on NASDAQ via
spin-off with a MCAP of US$
600m
March,2020. Grid Dynamics
listed on NASDAQ
20192015
2015. Raised US$1.5M
Series B from BGV
2020
PE / IPO funds
attracted
Acquisitions
2020. Daxx (UA)
2021
2021. Tacit Knowledge (UK)2015. Qubell/Tonomi (US)
*based on self reported Non GAAP EBITDA

31. Revenue
US$ 907m
(FY 2018)
EBITDA
US$ 112m
(FY 2018)
Revenue CAGR, 2014-18
23% y-o-y
# of engineers
12,716
(Dec 2018)
Delivery geography
Western Europe: 9%, Poland / Romania / Bulgaria: 31%, Ukraine:
28%, Russia: 18%, North America: 9%, APAC & MEA: 6%
Revenue % by vertical
Financial services: 51%, digital
enterprise: 25%, automotive: 25%
(3Q 2019)
PE / IPO funds
attracted
Acquisitions2006200820122013
2006. IT
Consulting
International
(US)
2008. ITC
Networks (RO)
2013. Freedom
OSS (US)
2014. Radius
Inc (US);
Mecel Populus
Suite (SE)
2015. Excelian (UK)
2016. Pelagicore (SE);
Symtavision (DE);
InSysGroup (US)
201420152016201720182019
2017. derivIT
(SG);
UnafortiS (CH);
IntroPro (UA)
2018. Objective
Software (DE);
Smashing Ideas (US)
2012. VTB Capital
2013. IPO on
NYSE
2019. Acquired by DXC
Technologies at ~2x EV
/ Revenue
2020
2020. CMORE
Automotive (DE)
2019. Acquired by DXC
Technologies (US)

32. Revenue
US$ 771m
(FY2020)
Revenue growth, 2019-20
19% y-o-y
# of engineers
20,000+
(2021)
Delivery geography
India, Ukraine, Argentina, Poland, Slovakia, Croatia, USA, Canada,
Israel, China
Revenue % by vertical, 2018
Media & communications: 30-35%, high
tech and commerce: 30%, medical devices
and industrial engineering: 20-25%
Acquisitions20002006200820092010201120132016
2000. Founded,
investment by New
Atlantic Ventures
2006. Westbridge Capital;
New Enterprise Associates
2008. Sequoia Capital;
New Atlantic Ventures;
New Enterprise Associates2010. Goldman Sachs
2013. Apax Partners
acquires GlobalLogic
2017. Canadian Pension Plan
Investment Board acquires
48% stake from Apax
2006. Lambent
Technologies (IN);
Bonus Technology
(US/UA)
2009. InterObject (ISR);
Cubika (AR)
2011. Rofous
Software (IN);
Method Incorporated
(US/UK)
2016. REC
Global (PL)
2021. Acquired by Hitachi at
EV/Revenue multiple of 7.9x
2019
2019. Assign (SE);
Skookum (US)
PE funds
attracted
2020.ECS
Group (UK);
Meelogic
(DE/PL)
20172021
2021. Acquired
by Hitachi
2020
EBITDA
US$ 179.5m
(FY 2020)

33. Vertical expertise:
Pharmaceuticals, financial
services, TMT, Automotive
# of engineers
2,500
(2020)
Delivery geography
Eastern Europe including Poland,
Ukraine, Malaysia
PE / IPO funds
attracted
Acquisitions2012201720182019
2018. CoreValue (UA);
Solid Brain (PL)
2017. Cornerstone Partners and
Oaktree Capital Management acquire
IT Kontrakt
2018 -2019. A series of
acquisitions and mergers to form a
platform company
2021
2019. IT Kontrakt, Sevenval (DE),
CoreValue (UA) and SolidBrain (PL) join
forces to form Avenga
Formerly IT Kontrakt
2012. WorkService
acquires IT Kontrakt
Revenue
>US$ 125m
(FY 2020)

34. Vertical expertise:
Automotive, Financial Services,
Consumer Services, Industrial,
High Tech, Media &
Communications
# of engineers
~1,600
(2020)
Delivery geography
Poland, Ukraine, Asia,
US, Germany
PE / IPO funds
attracted
Acquisitions20122014201520172019
2017. Investment in
FDV Solutions (AR);
iNTENCE (DE)
2014. Acquisition
Kupferwerk (DE)
2014 -2019. A series of bolt-on
acquisitions. In 2019, acquired by
Mid Europa Partners
2012. Enterprise Investors
Revenue
~US$ 100m
(FY 2020)
2021
2015. Merged with
SMT Software (PL)
2019. Acquired by
Mid Europa
Partners
Revenue growth
11% y-o-y
(Q1 2020)
2021. Ammeon (IRL)

35. AVentures Capital:
M&A advisory in CEE
Software Development Sector

36. •M&A strategy development & implementation
•Sell-side advisory
•Buy-side advisory
Professional, client-tailored
investment banking services:
M&A Advisory for IT Services
companies in Central Eastern
Europe
AVentures Capital: what we do
36

37. What makes us proud
A network of 200+ outsourcing
companies around the globe
Unique vertical focus on IT Services
and outstanding sector experience
US$ 400m+ in completed transactions in CEE
over last few years
AVentures advised on some of the
landmark deals in CEE SoftDev
•M&A team fully focused on Software Development
Outsourcing in the CEE region
•Vast Software Development sector experience
based on both investor and M&A advisor
perspectives
•Trusted advisor for exits and partnerships in CEE tech
sector
•On-the-ground analytical support and unmatched
execution capabilities
•Top-level contacts with the decision makers of
over 100 largest Software Development
companies in 20+ countries on 4 continents
•The advisor of choice for the largest strategic and institutional
investors doing M&A deals in CEE Tech
37

38. Investment banking
38
Investments
Minority investor,
extensively helping with
strategic business tasks
Exited2015
Buy-side advisor to
Soros Funds on
acquisition of a
minority stake
Ciklum
2018
Buy-side advisor to
a financial investor
on majority stake
acquisition
CoreValue
•Ciklum: global market focus
with 3,500+ developers across
12 delivery centers in Europe
and Asia
•AVentures: buy-side adviser
and BoD member for 4 years
•AVentures fund also coinvested
and exited in 2020
•CoreValue: US market focused
Salesforce consulting with 400+
developers across delivery
centers in Ukraine and Poland
•AVentures: buy-side adviser for
buy out of the majority stake,
minority investor and BoD
member for 3 years
•AVenturesfund also coinvested
& exited in 2019
Viseven
•700+ developers, outsourcing and
product company
•#1 Pharma vertical player from
Ukraine
•Clients –top pharma companies
globally
Exited
2020
Sell-side advisor to
Daxx during the
sale to Grid
Dynamics
Daxx•Daxx: 500+ team across four
delivery centers in Ukraine and
Netherlands with US and EU
clients across industries
•AVentures: sell-side advisor to
shareholders

39. Industry thought leadership
Software Development report: Poland, Romania, Ukraine and Belarus
DealBook of Ukraine: annual overview of tech investments
Recent publications in global media
First-of-a-kind industry
overview. Comprehensively
covers industry metrics, trends
and M&A activity in the region
“Ukraine is already one of the most
competitive IT industry players in the
region and is poised to consolidate
its position further.”
Link to the article
“Ukraine is still the best outsourcing
destination in Eastern Europe”
Link to the article
“In year overshadowed by the
COVID pandemic Ukraine’s dynamic
IT sector has been a rare ray of
sunshine”
Link to the article
“Ukraine's IT Boom Weathers The
Pandemic”
Link to the article
39Click to access

40. Yevgen Sysoyev
Managing Partner
[email protected]
•Technology advisory and
investments background
•Board Member and investor
in a dozen technology
product and service
companies
•INSEAD MBA with distinction,
Math and Economics degree
Yuliya Sychikova
Director
[email protected]
•Tech entrepreneurship and VC
background
•Investment and operation
expertise in IT Service
Industry
•BA degree in Economics from
the University of Pennsylvania
Let`s talk?
40
Tetyana Torchylo
Investment Intern
tetyana.torchylo@aventurescapital
.com
•(cont.) BA degree in Political
Economy from the Duke and
Duke Kunshan Universities