Insoft Capital and AVentures Capital announced today they sold a majority stake in CoreValue to IT Kontrakt, a leading IT outsourcing service provider based in Poland. No details about the transaction or the stakes sold by the two investors were disclosed.
As part of IT Kontrakt, Core Value is joining ‘IT Services Competence Platform,’ a group of companies launched in 2017 by US firm Oaktree Capital Management and Polish Cornerstone Partners. This group also controls Solidbrain, another Polish company.
Founded in 2004, CoreValue is a US-headquartered IT service provider with Ukrainian roots. It has delivery centers in seven cities including Lviv (Lvov), Kyiv (Kiev), Poltava and Ivano-Frankivsk (Ivano-Frankovsk) as well as Wroclaw in Poland.
With a team of 400 employees, CoreValue provides essentially traditional cloud-based CRM implementation services and mobile applications. It serves various types of customers – from funded startups, to medium to large enterprises – from the pharma, healthcare, finance and other industries, mainly in the USA and Europe.
“CoreValue has doubled its business over the last few years while its SalesForce practice has grown even faster. The company became a great fit for an acquirer with global ambitions, such as IT Kontrakt,” commented Yevgen Sysoyev, managing partner at AVentures Capital and a former member of CoreValue’s board of directors.
In 2016-18 CoreValue attracted investments from AVentures Capital, which is a globally-oriented Ukrainian tech fund and M&A advisory firm, and Insoft Capital, an investment management company focusing on IT outsourcing and software development companies. Both organizations are based in Kyiv.
Several Ukrainian IT services companies were acquired or attracted investments over the past two years. Among them are Ciklum, in which AVentures co-invested just weeks ago; Intellias, which was backed by Horizon Capital this past September; GlobalLogic, whose stocks were bought massively last year by a Swiss investor; and Grossum, which was acquired by The App Solutions in April 2017.
Sources: AVentures Capital, CoreValue