Euvic Group, a major Polish group of IT service companies, is in the process of acquiring Lviv-based software development provider Exoft. This award-winning Ukraine company currently serves clients in at least 24 countries with more than 50 skilled engineers.
The terms of the deal were not disclosed, but Ukrainian industry insider Vitaly Horovyj told AIN the amount was under $1 million. Even though the Polish group will get a controlling stake, Exoft will run its operations autonomously, reported AIN.Capital.
“Companies like Euvic don’t try to get the price but, like Poland in general, they lend a helpful hand to Ukraine in terms of investment as reliable strategic partners with long-term plans,” said Taras Bachinsky in an exchange with Forbes Ukraine.
Bachinsky, a co-founder of Mergewave Capital — the M&A brokerage investment company that has represented Euvic in the deal — added that Euvic intended to “build a permanent presence in Ukraine.”
The Polish group will make new acquisitions in the country, targeting “companies with a size of around 100 IT specialists.” Service centers in Ukraine will be launched alongside business centers in Western Europe, Dubai and the USA.
“We are aware of the risks associated with doing business in the current situation in Ukraine, but we also see opportunities in this. The IT industry, despite everything, remains stable. We believe that the war will end, and we want to support our partners in further development,” said Euvic VP Lukasz Chernetski, as quoted by AIN.
“I hope that Exoft’s entry into the Euvic Group will allow both parties to grow and significantly increase efficiency,” he added, pointing out Exoft’s “strong position in the software development market and highly qualified employees.”
Founded in 2005, Euvic Group generated roughly $250 million in sales in 2021 with a team of nearly 5,000 employees.