The M&A Watch: Eastern Europe – April 2021 Coverage
Our monthly M&A Watch spotlights deals in the Information Technology industry throughout Eastern Europe.
This month, we highlight 5 deals across the Eastern Europe IT Services and Software ecosystem. Wipro, KKR, and Wirtek were active acquirers in Eastern Europe in April. Two deals were completed in Romania, which has become a prominent region for M&A over the last few years. We reiterate our view that companies with exposure to IT services/application software within Eastern Europe remain attractive targets given the high concentration of IT/Software talent, time zone advantage, and agile delivery methods inherent to the region. The interest of large publicly traded companies in the space is favorable for sellers, from our perspective, as strategics with large balance sheets is able to drive up purchase multiples given their access to capital and ability to realize synergies.
Wirtek has signed a binding contract regarding the acquisition of all the assets of two sister companies CoreBuild SRL and Core Technology Services SRL, both located very close to Wirteks existing outsourcing facilities in Cluj-Napoca, Romania. Both sister companies – the CoreBuild companies – are profitable and growth-oriented companies working in the IT outsourcing market and focused on cloud and mobile technologies. #Romania #Cloud #MobileDevelopemnet. #ITservices
KKR acquired managed IT services provider Ensono from private equity firms Charlesbank Capital and M/C Partners. Esno is a global IT services company that provides managed hosting and cloud infrastructure services. The Company has an offshore office and delivery resources in Poland. #Poland #MSP #Cloud
Wipro completed the takeover of Metro-Nom GMBH and Metro Systems Romania S.R.L. for a purchase consideration of $62.5 million based on the financials at the time of completion of the transaction. Metro Systems Romania S.R.L. provides specialized consulting to retail companies in all aspects of IT, develops specific solutions along the full value chain, and provides a powerful IT infrastructure with a team of over 900 IT professionals. #Romania #ITservices
Autodesk, Inc. (NASDAQ: ADSK) has announced it has signed a definitive agreement to acquire Upchain, a provider of instant-on, cloud-based product lifecycle management (PLM) and product data management (PDM) solutions. The acquisition positions Autodesk to deliver more value for engineers, manufacturers, suppliers, and other product stakeholders by increasing collaboration across the decentralized product value chain, regardless of CAD system. Upchain has offices in Russia, Poland, and other European countries. #Russia #Poland #Software #Cloudlifecyclemanagement
EDITED, the leader in retail market intelligence, announced today it has completed its acquisition of DynamicAction, an internal retail analytics company. DynamicAction is based in the US with offices in Sofia, Bulgaria. #MarketIntelligence #Bulgaria
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
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