A new acquisition was announced last month on the thriving Ukrainian IT service scene. US company Cprime bought Archer Software, a Ukrainian tech consulting and custom software development firm with offices in Dnipro, Kyiv (Kiev) and New York.
The terms of the deal were not disclosed, but industry insider Vitaly Gorovy told Ukrainian tech blog AIN.UA that Archer Software might have been valued between $5 million and $8 million.
“The acquisition will enable Archer to take the custom software delivery to a new level complementing the full-cycle solution development with the Agile transformation and collaboration tooling implementation,” Cprime stated.
“We now augment Cprime’s process, strategy, and tool expertise with experienced software development teams that accelerate innovation and time to market,” said Archer Software CEO Oleksii Tulin.
Founded in 2000, Archer Software helps startups and enterprises digitize healthcare, automotive, and fintech domains. It has designed, built, and supported “more than 650 B2B, B2C, and B2G products for over 300 clients.”
Archer Software will continue to operate under the leadership of CEO Oleksii Tulin, COO Alex Sharko and the existing Archer’s leadership team.
Cprime is a global consulting firm helping transforming businesses get in sync. Based in an Francisco, the company is “a global consulting firm helping transforming businesses get in sync” and “the partner of choice for Fortune 100 companies looking to achieve value and agility.”
Its parent company, Alten Calsoft Labs, is a US subsidiary of French major Alten Group. Operating in 25 countries, Alten touts itself as “the European leader in engineering and high-technology consulting.” With a turnover of more than 2.6 billion euros, the group currently has more than 37,000 employees.
The past years were marked by a series of acquisitions of Ukrainian IT service firms. In 2019, for example, Ukrainian InSoft Software increased its stake in Rozdoum (Kharkiv) and bought a controlling stake in Rademade (Kyiv); Beetroot, a Swedish IT company with offices in five Ukrainian cities, acquired Ukrainian Onlinico; Ukrainian Acceptic was purchased by Israeli Yael Group.
A large fraction of the Ukrainian market is made of small players who need to reach a critical mass to access large international contracts.