Comprehensive coverage of M&A activity in Software Development (IT Outsourcing) industry in CEE region through 1H 2022

1. CEE software development
M&A report 1H 2022
October 2022
CEE software development
M&A report 1H 2022
October 2022
CEE software development
M&A report 1H 2022
October 2022

2. Publicly-traded companies
continue to grow fast in 1H
2022 while their stock is
repriced
• As inflation rises and recession looms, the stock of IT service companies such as Epam, Endava, and
Grid Dynamics declined by c. 50% during 1H 2022 and improved only by 5%, as of Sep. 28. The
companies, however, continue to demonstrate resilient YoY growth of 45%+ on average in 1H 2022
M&A activity slowed down • With 40+ deals closed in 1H 2022, the deal activity slightly slowed down vs. last year
Ukraine’s IT industry
demonstrated resilient
growth in 1H 2022, while
Russia/Belarus suffered
from massive reallocations
• International clients are staying strong and supportive of Ukraine. Ukrainian IT industry demonstrated
double-digit growth in 1H 2022, as the IT export grew by c. 23%. Simultaneously, companies with a
major presence in Russia and Belarus face pressure to hastily move engineers to other countries and
forgo local revenues amid imposed sanctions
Delivery diversification
becomes part of the
strategy
• To minimize single region delivery risks, companies with CEE presence actively enter new geographies
either organically or through M&A, with LatAm and APAC as the most popular destinations
• Large publicly-traded companies such as Epam, Endava, and Grid Dynamics make a bet on India as
their fastest-growing delivery hub
War for talent continues
• Most mid to large companies have hundreds of open positions. There is a war for talent that leads to a
further single-digit increase in salaries for engineers and puts pressure on companies to keep raising
billing rates
M&A / IPO play slows down
• At least five CEE companies announced IPOs in 2020-22. Other well-funded CEE players, preparing
for IPO/liquidity events, continue their expansion through M&A globally, with many deals still in
progress. With public markets tumbling, we expect most companies to delay IPOs until better times
CEE Software Development M&A in 1H 2022: Executive Summary
2

3. Inaccuracies and updates
Even though we have done our best to provide accurate and complete information, we recognize the limits of such industry reporting. We will be pleased to
receive any corrections, notices of inaccuracies or information on deals we may have missed
New and updated data will be included in the next publication, improving the level of detail and the quality of the report
Please submit corrections, updates and/or suggestions to tetyana.torchylo@aventurescapital.com. Our thanks in advance for your assistance, which will make
the next report a better resource
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Disclaimer
3

4. • 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
4

5. AVentures Capital
selected
track record:
Investment banking
Investments
Minority investor, extensively helping
with strategic business tasks
Exited
2015
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
• AVentures fund 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
5

6. What makes us proud
A network of 300+ 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 Software Development
• 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
6

7. Industry through leadership
CEE software development M&A report: Poland, Romania, Ukraine & Belarus
DealBook of Ukraine: annual overview of tech investments
Publications in global media
Fi
“Less than 4% of more than 250
technology in Ukrainian VCs’ portfolios
have significantly reduced turnover.
But none of them closed.”
Link to the article
“A “record-high VC and PE volume” is
reported for 2021, with more than
$830mn invested in such [tech]
companies.”
Link to the article
“...The industry keeps rolling and
makes ambitious plans for the future
so more unicorns will emerge.”
Link to the article
“The tech sector has been a bright
spot in the Ukrainian economy.”
Link to the article
Click to access
Click to access
7

8. Yevgen Sysoyev
Managing Partner
ys@aventurescapital.com
• 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
yuliya@aventurescapital.com
• 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?
Tetyana Torchylo
Investment Analyst
tetyana.torchylo@aventurescapital.com
• (cont.) BA degree in Political
Economy from the Duke and
Duke Kunshan Universities 8

9. M&A activity in CEE summary 2020-2022
Top 10 countries by the deals count
• Overall, at least 218 software development &
outsourcing deals were made between 2020 and 1H
2022 in the CEE region
• 25% of those deals were domestic (happened within
one country), and over 60% were international deals
involving players outside of the region
• Among all the countries, Romania, Poland, Ukraine, and
Belarus remain the key regions. Over 65% of all the
deals included at least one of these four countries, and
almost 30% included Romania alone
• The total disclosed value of deals is over US$ 12b+
Source: AVentures Capital
Poland 🇵🇱‍
Ukraine🇺🇦‍
Belarus🇧🇾‍
Romania 🇷🇴‍
Bulgaria 🇧🇬‍
Hungary 🇭🇺‍
Croatia 🇭🇷‍
Serbia 🇷🇸‍
Czech Republic 🇨🇿‍
Slovenia🇸🇮‍
50+
25-50
15-25
10-15
5-10
<5
# of deals
9

10. • As Ukraine is zooming on winning the war, the companies with delivery in
Ukraine resumed getting interest from potential buyers, with a few deals already
closed in 2022
• In the first months of the war, companies with R&D in affected territories focused
on relocating employees out of immediate danger to safer territories or countries.
The war exacerbated the remote work trend and highlighted the importance of a
Business Continuation Plan in place for emergency situations
• Most clients of Ukrainian companies stayed loyal to their IT service providers of
choice and commanded the resilience and grit of Ukrainian employees, who
hardly showed a drop in productivity
• Companies with clients and developers in Russia and Belarus had to either
cease operations there or lose western revenue. Most are closing operations and
are in the process of relocating employees to such countries as Armenia,
Georgia, Turkey, Uzbekistan, and others
• Large publicly-traded companies like Epam and Grid Dynamics, who continue to
have a major presence in Ukraine, demonstrate significant revenue growth and
trade on par with their global peers as of Sep. 2022 after bridging a gap of c.-
20% that emerged in 1Q 2022 due to war
Selected deals in companies with significant
UA delivery in 2022
Date Target Employees
Amount,
US$ m
Buyer
Sep`22 450 -
Jun`22 5000 75
May`22 350 -
Mar`22 700 -
Mar`22 14 -
Jan`22 80 - UST
Ukraine update: the tech sector grew at double digit
pace in 1H 2022 and M&A market is slowly coming alive
10

11. -70%
10%
90%
170%
250%
Jan.2020 Apr.2020 Jul.2020 Oct.2020 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022 Jul.2022
1H 2022* LTM** Since Jan. 2020
[Endava] -44% -20% 97%
Globant -42% -16% 69%
[Grid Dynamics] -54% -7% 62%
[Epam] -54% -40% 42%
Zensar -51% -21% 30%
S&P500 -20% -12% 17%
Genpact -20% -7% 0%
[4iG] -21% -1% -13%
Alten -38% -17% -13%
*January 1 – June 30, 2022
**Data as of June 30, 2022
Stock performance of IT services publicly
traded companies: global leaders
Source: Yahoo Finance, AVentures Capital
[
]
–
companies
with
significant
delivery
in
CEE
69%
30%
42%
97%
17%
-13%
0%
-13%
Endava
Globant
Epam
Zensar
Alten
S&P500
4iG***
Genpact
62% Grid Dynamics
The stock of all players has taken a temporary major hit amid
the Russian invasion of Ukraine. Despite strong revenue
growth in 1H 2022, other factors such as inflation and fears
of the imminent recession continue to cool down and reprice
the stock performance of IT services companies
*** c. 25% of 4iG’s revenue comes from IT services, which makes it an important player in
11the CEE’s software development market 11

12. Companies with CEE presence demonstrate ~2x higher trading
multiples vs global peers
Company CAGR 2019-22, % GM, % EBITDA, % EV/S* EV/EBITDA*
Endava 33% 33% 19% 6.8x 31.9x
Epam 30% 33% 16% 3.8x 19.6x
4iG** 63% 22% 17% 5.5x 28.0x
Grid Dynamics 32% 40% 18% 4.0x 21.8x
AVERAGE 5.0x 25.3x
MEDIAN 4.8x 24.x
Globant 38% 38% 27% 4.9x 26.4x
Alten 9% 19% 14% 1.1x 7.7x
Genpact 9% 35% 18% 2.2x 12.0x
Cognizant 5% 37% 20% 1.8x 9.3x
Accenture 12% 32% 19% 2.9x 15.3x
Perficient 17% 38% 22% 4.4x 20.4x
Zensar 1% 24% 16% 1.1x 6.7x
Wipro 9% 29% 21% 2.5x 11.4x
Tech Mahindra 8% 46% 19% 1.9x 9.8x
Infosys 12% 31% 26% 4.6x 17.2x
AVERAGE 2.8x 13.6x
MEDIAN 2.4x 11.7x
CEE
Rest
of
the
world
Source: AVentures Capital, Yahoo Finance
Data as of the most recent 12 months period
reported (i.e. June 30, 2021 – June 30, 2022)
*As of June 30, 2022
12
** c. 25% of 4iG’s revenue comes from IT services, which makes it an important player in
12the CEE’s software development market

13. -50%
50%
150%
250%
350%
450%
550%
Jan.2020 Apr.2020 Jul.2020 Oct.2020 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022
1H 2022* LTM** Since Jan. 2020
Spyrosoft 20% 6% 308%
Siiili -8% -23% 45%
Sirma Group 75% 42% 25%
Wasko 3% -11% 25%
S&P 500 -20% -12% 17%
Asseco (PL) -20% -15% 1%
Itera -25% -20% -8%
CEE peers under US$ 250m in revenue
The stock of selected small and medium publicly-
traded players performed better than the market in 1H
2022, with Spyrosoft being a major outlier
25%
45%
308%
-8%
17%
1%
Spyrosoft
Siili
Sirma Group&Wasko
ITERA
Asseco
S&P500
Jul.2022
13
*January 1 – June 30, 2022
**Data as of June 30, 2022
Source: Yahoo Finance, AVentures Capital

14. Large vs medium CEE peers: premium multiples for scale
Company CAGR 2019-22, % GM, % EBITDA, % EV/S* EV/EBITDA*
Endava 33% 33% 19% 6.8x 31.9x
Epam 30% 33% 16% 3.8x 19.6x
4iG** 63% 22% 17% 5.5x 28.0x
Grid Dynamics 32% 40% 18% 4.0x 21.8x
AVERAGE 5.0x 25.3x
MEDIAN 4.8x 24.x
Asseco Group 14% 22% 15% 0.6x 3.8x
Wasko 12% 14% 6% 0.2x 2.5x
Siili 12% 28% 13% 1.0x 8.4x
ITERA 5% 24% 15% 1.4x 9.1x
Spyrosoft 54% 36% 17% 1.4x 8.2x
Sirma Group 3% 68% 16% 1.4x 7.1x
AVERAGE 1.0x 6.5x
MEDIAN 1.2x 7.7x
250M+
Under
250M
in
revenue
14
Source: AVentures Capital, Yahoo Finance
Data as of the most recent 12 months period reported
(i.e. June 30, 2021 – June 30, 2022)
*As of June 30, 2022
** c. 25% of 4iG’s revenue comes from IT services, which makes it an important player in
14the CEE’s software development market

15. Global leaders peers: growth is a one of major drivers of valuations
R² = 0,7395
0
10
20
30
40
0% 25% 50% 75%
EV/EBITDA
CAGR R² = 0,016
0
10
20
30
40
0% 10% 20% 30% 40% 50%
EV/EBITDA
GM R² = 0,1623
0
10
20
30
40
0% 10% 20% 30% 40%
EV/EBITDA
EBITDA Margin
US$ 250m+ in revenue companies
15
Higher CAGR implies premium valuations
from public investors
Healthy Gross Margins in the IT service
companies are between 30-40%
Most IT service public companies fall
between 15-25% EBITDA Margin

16. Comparison of publicly traded companies with
US$ 250m+ in revenue
EPAM
Q2 2022 Rev / Growth, US$ m 1,195 +35.6% 429 +40.6% 227 +46.7% 77 +62.2%
LTM is of Jun 30, US$ m 4,462 1,600 871 273
Employees # 61,300 24,924 11,853 3,763
Clients # - 1043 - 208
Clients US$ 1m+ 412 233 134 34
Concentration top 5, 10 16.6% / 24.2% 27% / 39% n/a / 32% 45.4%/ 62.3%
Revenue Geo
Top Verticals
M&A & Growth
Priorities
Confident about current delivery
locations and focus on adding industry
expertise through M&A
Pursue strategic, tuck-in acquisitions
both via product and service
companies
Seek geographic balancing and
diversification incl. N. America and push
for APAC, continue to accelerate
industry/technology via M&A
Focus on innovation in cybersecurity, supply
chain and life-sciences + establish new
delivery locations
Other
Closing Russia operations, reducing
Russian delivery to 30% by 2023. Bet
on India for future rapid growth
75% delivery is still in LatAm.
Expanded to Canada & Poland. See
potential in crypto/blockchain space
and announce new products there.
Bet on India for future growth
Highlight payments/fintech expertise as
one of the biggest internal expertise. See
slowdown in wage inflation down to pre-
COVID levels
Ceased Russian activities and remained
committed to Ukraine.
Bet on India for future growth
Americas
60%
EMEA
35%
APAC
3%
CEE
2%
N. America
64%
LatAm
24%
EMEA
10% Asia & Oceania
2%
N. America
35%
UK
40%
Europe
22%
RoW
3%
N. America
80%
EMEA
20%
Travel &
Consumer
23%
Fin. Services
21%
Business Info & Media
17%
Software & Tech
16%
Life Science
& Health
11%
Other
12% Banking &
Financial
26%
Media & Ent.
23%
Business Info & Media
16%
Software & Tech
16%
Life Science &
Health
10%
Healthcare
8%
Other
1%
Payment &
Financial
51%
TMT
25%
Other
24%
Retail
33%
TMT
30%
CPG
21%
Fin. Services
6%
Other
10%
last reported in 2021
16

17. 79% 75%
3%
3%
13% 17%
5% 6%
Q2'21 Q2'22
Comparison of delivery locations of publicly traded companies with
US$ 250m+ in revenue
LatAm
USA
India
Other 14% 16%
4% 3%
56% 57%
27% 24%
Q2'21 Q2'22
13% 12%
87% 85%
0% 3%
Q2'21 Q2'22
LatAm
USA
EU
Non-EU
Europe
Americas
Europe
Other
Delivery Geography
75% of Globant’s delivery is still in Latin
America, with the biggest presence in Colombia
and Argentina
The key delivery country for Endava in the EU
remains Romania. The company also has a
presence in Moldova, Colombia, and Argentina
Ukraine remains main delivery location. The
company had to close its Russia office due to
war. Like its competitors, they see India as the
fastest growing delivery hub for future
Due to the differences in reporting standards, Epam’s current delivery geography is unavailable at the moment 17

18. 700
Romania
9
+
Aug. 2021
800
Albania
8
+
Mar. 2022
800
Poland
7
+
Oct. 2021
1,000
Bulgaria
6
+
Jul. 2021
+
1,100
Belarus
4
+
Nov. 2021
1,300
Serbia
3
+
Jan. 2022
2,000
Romania
2
+
Oct. 2021
5,000
Ukraine
1
+
Jun. 2021
Top-10 largest publicly disclosed deals during the last 12 months
Target
Buyer
Target’s # of EE and location
Source: AVentures Capital
*Ranked by size of delivery in CEE
1,000
Hungary
5
+
Nov. 2021
700
Ukraine
10
+
Mar. 2022
18

19. What acquirers are looking for
Public companies receive higher
multiples, with some reaching x4-
7 EV/R and up to x30 EV/EBITDA
vs. multiples we observe with
private companies. Thus, public
companies have stronger
financial incentives to pursue
M&A
Our insights into recent private
companies’ deals demonstrate
that implied EV/R lies in the x1-x2
range and EV/EBITDA in the x6-
x15 range. There are, however,
exceptions with transactions at
higher multiples
1
Mid-market and/or enterprise
clients with long term contracts
Above the market average 35+% y-
o-y consistent revenue growth
Company’s ability to retain and win
new large contracts, so that most of
the revenue is recurring
High EBITDA (over 15%) and Gross
Margin (over 40%)
2
3
4
Founders’ willingness to stay for 2-4
years post acquisition
Strong recruitment function able to
close positions in the heated market
5
7
6 Distinguished employee culture
resulting in solid talent retention
Other strategic rationales such as type
of delivery, technology specialization,
industry vertical, business model etc.
8
19

20. Vertical capabilities
• Acquisition of new verticals or deepening of existing capabilities
Deal examples: Absolunet – Valtech (Digital), 2021; IBM – Nordcloud
(Hybrid Cloud), 2020; Datarati – OSF Digital, 2022 (Salesforce)
Delivery diversification
• New delivery geographies to diversify market / political risks
• Delivery in new countries/regions enables to tap into the talent pool
Deal examples: Epam – C4N (Colombia), 2021, Intive – Spark Digital
(Argentina), 2021
Client acquisition
• Acquisition of new clients or enhancement of current client profile
• Small players can be attractive depending on their client profile
Deal examples: Nortal – Skelia, 2022; Ciklum – CN Group, 2021
Scale
• Enables companies to bid for larger projects
Deal examples: Perfectial – Avenga, 2021; Grid Dynamics –
DAXX, 2020
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 examples: Epam – ENGINIETY (SAP), 2022
And key strategic rationales
driving M&A roll-on strategy
Buyers continue to actively shop for new delivery
locations, vertical capabilities, logos as well as
technical skills
20

21. Active M&A players in CEE
Selected PE funds active in the region Strategic players active in acquisitions
There is a major consolidation effort in the region with
dozens of PE funds and strategic acquirers actively
investing and buying IT service companies
21

22. Selected CEE Top-100
Largest IT service players with delivery in CEE
An increasing number of companies cross the US$ 50m in
revenue mark. Out of the 100 largest IT service companies, >15
make over US$ 100m in revenue, and another 10 exceed the US$
200m mark
Estimated annual revenue,
US$
Emerging
US$ 25-50m
Mid-size
US$ 50-200m
Large
>200m
Illustrative

23. Market consolidation through
selected deals: financial investors
USA
USA
USA
USA
USA
USA
USA
USA
A growing number of the US and EU Private Equity
(PE) players actively pursue buying majority and
minority stakes in CEE companies
* Include largest deals from 2020-2022
USA
23

24. Market consolidation through
selected deals: strategic players
inside Europe
CEE players continue to pursue M&A of smaller peers
either to solidify positions within existing markets or
diversify delivery through cross-border acquisitions 24
* Include largest deals from 2020-2022

25. Global players bet on CEE leaders
Japan
USA
India
Large global players continue to acquire CEE leaders to
solidify presence in the region as well as acquire new
vertical and tech capabilities
* Include largest deals from 2020-2022

26. CEE players expand globally via
M&A
Colombia
Israel
New Zealand
Australia
LatAm
Argentina
Argentina
India
Costa Rica
Mexico
Brazil
USA UAE
Brazil
Argentina
Armenia
APAC
Multiple CEE companies have expanded to such new
regions as LatAm, APAC and MENA to diversify
delivery capabilities
26
* Include largest deals from 2020-2022

27. Appendix 1: deals table
2020 – 1H 2022

28. Year Target Est. # of employees Transaction Value, US$ m Buyer
2022 Digitally Inspired 450 - Intellias
2022 DataArt 5000 75 FTV Capital
2022 Miratech 700 Horizon Capital
2022 Skelia 350 - Nortal
2022 ITernal Group 80 - UST
2022 PULS SOFTWARE (Eventyr) 70 - IdeaSoft
2022 Software Nation 40 - DataArt
2022 Koroka 20 - Synebo
2022 South Gate Tech 14 - Beetroot
2021 GlobalLogic 20000 9600 Hitachi
2021 DataArt 4200 - Da Vinci
2021 Astound Commerce 1200 - RLH Equity Partners
2021 Perfectial 500 - Avenga
2021 CN Group 360 - Ciklum
2021 Tacit Knowledge 180 - Grid Dynamics
2021 SFL 100 - DataArt
2021 IdeaSoft 85 - Sigma Software
UKRAINE (1/2)
One can estimate a range for deal value with indicative median annual
revenue per engineer of $40-60K and deal range of x1-2 EV / Revenue
Major delivery location in:
28

29. Year Target Est. # of employees Transaction Value, US$ m Buyer
2021 Sannacode 60 - Digicode
2021 X1 54 - Globaldev Group
2021 MarketForce 50 - Astound Commerce
2021 Cloudfresh 50 - InSoft Partners
2021 Intellica Group 40 - Digicode
2021 Polyteda Cloud 32 - Silvaco
2021 Business Automatics 30 - 1World Online
2021 DA-14 20 - Altexsoft
2021 Oxygen Soft 18 - Beetroot
2021 Pro4People 18 - Star
2020 Ciklum 3120 - Recognize Partners
2020 Daxx 400 - Grid Dynamics
2020 Meelogic 300 - GlobalLogic
2020 S-PRO 160 - SARS Capital
2020 Archer Software 125 - Cprime, Alten
2020 Agilites 50 1 Yael Acceptic
UKRAINE (2/2)
Major delivery location in:
29

30. Year Target Est. # of employees Transaction Value, US$ m Buyer
2022 Solvd 600 - Siguler & Guff
2022 Kiss Communications - 0.14 TenderHut
2022 ENGINIETY - - EPAM Systems
2022 Better Software Group 170 Spyrosoft
2022 Virtualmind 130 - Software Mind
2022 SwissQ Consulting 120 - Xebia
2022 Pilot44 44 - Netguru
2022 Brainhint 40 0.4 TenderHut
2022 Kiss Digital 30 0.4 TenderHut
2022 Ermlab 10 - STX Next
2021 PGS Software 800 - Xebia
2021 Perfectial 500 - Avenga
2021 SNP Poland 400 - All for One Group
2021 Simtlix 350 - intive
2021 Spark Digital 330 - intive
2021 PolSource 308 136.7 EPAM Systems
2021 VirtusLab 270 - Aquiline Capital Partners
POLAND (1/3)
Major delivery location in:
30

31. Year Target Est. # of employees Transaction Value, US$ m Buyer
2021 Divante 260 63.25 Cloudflight
2021 Veracomp 257 - Exclusive Networks
2021 coMakeIT 250 - Xebia
2021 TenderHut 200 12.31 IPO
2021 Code Factory 200 - Software Mind
2021 Ammeon 200 - intive
2021 Software Mind 160 30 Enterprise Investors
2021 Appcino 150 - Xebia
2021 ValueLogic 80 - Software Mind
2021 Skyrise.tech 80 - Etteplan
2021 g-company 70 - Xebia
2021 Polidea 70 - Snowflake
2021 SE16N 60 - SoftwareOne Holding
2021 Evertop 50 1 TenderHut
2021 Oblivion 40 - Xebia
2021 eBusiness Institute 40 - Lingaro
2021 Addepto 30 - Grape Up
POLAND (2/3)
Major delivery location in:
31

32. Year Target Est. # of employees Transaction Value, US$ m Buyer
2021 Pro4People 18 - Star
2021 Delv Global 13 - Vox Financial Partners
2020 Boftel Poland - - Unikie
2020 Maise - - ITMagination
2020 Bonair - - Fellowmind
2020 Cervi Robotics - - Dronehub
2020 Spyrosoft 800 43.18 IPO
2020 KPN Consulting 550 - Cegeka
2020 NordCloud 500 - IBM
2020 STX Next 320 - Innova Capital
2020 Meelogic 300 - GlobalLogic
2020 Atende 200 14.11 Custodia Capital
2020 Sage Group 177 91 Mid Europa Partners
2020 Codewise 158 36 CentralNic
2020 World Phoning Group 100 - ESE Entertainment
2020 Craftware 86 - BlueSoft
2020 SimplicITy 42 - Ricoh
POLAND (3/3)
Major delivery location in:
32

33. Year Target Est. # of employees Transaction Value, US$ m Buyer
2022 netnomics - OSF Digital
2022 Tremend 650 - Publicis Groupe
2022 Enea’s Software Development 160 18.7 AROBS
2022 Kolekto 130 - OSF Digital
2022 TopTech 85 2.8 Bittnet
2022 IOTH 60 - TMC
2022 Dendrio 60 1.6 Agista
2022 Nordlogic Software 60 AROBS
2022 FitForCommerce 50 - OSF Digital
2022 Business Agility Consulting 50 - Endava
2022 Datarati 45 - OSF Digital
2022 [e-spres-oh] 40 - Softbinator Technologies
2022 DexMach 35 - Cegeka
2022 Solver Sweden 25 - Cegeka
2022 2net computer 24 0.6 Bittnet
2022 Digital Tailors 10 - Softbinator Technologies
ROMANIA (1/4)
Major delivery location in:
33

34. Year Target Est. # of employees Transaction Value, US$ m Buyer
2021 Adept Group - - OSF Digital
2021 Paladin Group - - OSF Digital
2021 Relation1 - - OSF Digital
2021 Dendrio - - Graphein
2021 Zipper Studios - - Fortech Group
2021 DTSM - - 4iG
2021 3Pillar Global 2000 - H.I.G. Capital
2021 AROBS 800 17.5 IPO
2021 Trivadis 710 - Accenture
2021 Connections Consult SA 300 - IPO
2021 Code Factory 200 - Software Mind
2021 LEVVEL 172 64.07 Endava
2021 FIVE (Pet Minuta) 157 34.6 Endava
2021 Software Development Europe 150 - 3Pillar Global
2021 Tellence 145 - Orion
2021 Gemini Solutions 119 - ThoughtWorks
2021 Macadamian 109 - emids
ROMANIA (2/4)
Major delivery location in:
34

35. Year Target Est. # of employees Transaction Value, US$ m Buyer
2021 Softbinator Technologies 100 - IPO
2021 SecurIT 60 - Cegeka
2021 ITPrepared 50 0.66 Bittnet
2021 Servodata 50 1.7 Bittnet
2021 Werise 44 - OSF Digital
2021 dataglobal 40 - Windream
2021 Berg Software 40 - AROBS
2021 Smartschool 30 - Cegeka
2021 Global Resolution Experts 30 - Bittnet
2021 DAS Solutions 25 - Cegeka
2021 CoreBuild and Core Technology 20 - Wirtek Romania
2021 Brusch Services 20 - Connections Consult SA
2021 WiseUp 15 - Softbinator Technologies
2021 Arctic Stream 15 0.5 Bittnet
2021 DataScript 10 0.3 Bittnet
2020 Gridmax - - Cegeka
2020 Cognetik - - Brillio
ROMANIA (3/4)
Major delivery location in:
35

36. Year Target Est. # of employees Transaction Value, US$ m Buyer
2020 Metro Systems Romania S.R.L 1300 - Wipro
2020 3Pillar Global 1052 - CIP Capital
2020 iQuest 660 - Nagarro Holding
2020 Accesa 636 - Ratiodata
2020 KPN Consulting 550 - Cegeka
2020 Tremend 375 4.2 EBRD
2020 Comtrade Digital Services 316 70.34 Endava
2020 Tiempo Development 280 - 3Pillar Global
2020 Quantic Lab 218 5.64 Embracer Group
2020 Isthmus Software 118 - 3Pillar Global
2020 World Phoning Group 100 - ESE Entertainment
2020 Whyttest 74 - Testronic
2020 Citymesh 58 - Cegeka
2020 Orosimo Software 45 - SoftOne Romania
2020 Finavista 35 - Cegeka
2020 Cyber Smart Defense 12 - Stefanini
2020 TR Consult 10 - 4iG
2020 Udev 6 - Zitec
ROMANIA (4/4)
Major delivery location in:
36

37. Year Target Est. # of employees Transaction Value, US$ m Buyer
2022 Superhub - - EPAM Systems
2022 ENGINIETY - - EPAM Systems
2022 Vivify Ideas 53 - EPAM Systems
2021 S4N - - EPAM Systems
2021 Optiva Media - - EPAM Systems
2021 EffectiveSoft - - Zubr Capital
2021 Exadel 1100 - Sun Capital
2021 Emakina Group 1100 143.4 EPAM Systems
2021 PolSource 308 136.7 EPAM Systems
2021 Coppei 120 - Exadel
2021 Targetprocess 101 - Apptio
2021 CORE SE 91 - EPAM Systems
2021 White-Hat 73 - EPAM Systems
2021 Just-BI 55 - EPAM Systems
2020 Visutech Plating - - Atotech
2020 Deltix 80 - EPAM Systems
2020 Ricston 31 - EPAM Systems
BELARUS (1/1)
Major delivery location in:
37

38. Year Target Est. # of employees Transaction Value, US$ m Buyer Country
2021 ALBtelecom 800 - 4iG Albania
2021 Kreatx 38 - Cyberlux Corp Albania
2020 Orosimo Software 45 - SoftOne Romania Albania
2022 BS Telecom Solutions 90 16.13 Asseco SEE Bosnia and Herzegovina
2020 Maestral 100 - Olympia Capital Partners Bosnia and Herzegovina
2020 Mistral 100 Olympia Capital Partners Bosnia and Herzegovina
2022 Melon 300 - Kin + Carta Bulgaria
2022 STEMO 200 27.4 A1 Bulgaria Bulgaria
2022 BST 150 - NTT DATA Bulgaria
2022 South Gate Tech 14 - Beetroot Bulgaria
2021 BULPROS 1000 47 ec4u Bulgaria
2021 HeleCloud 120 42.14 SoftwareONE Holding Bulgaria
2021 Sciant 110 - Sirma Group Bulgaria
2021 Frakton 70 - Melon Bulgaria
2021 Infoleven 30 - Stanga Bulgaria
2020 DataStork - - HeleCloud Bulgaria
2020 e7Studio 15 - Timify Bulgaria
2020 HyperAspect 10 - Concord Bulgaria
*Deals include companies with a significant presence in the indicated country
OTHER CEE COUNTRIES (1/5)
Major delivery location in:
38

39. Year Target Est. # of employees Transaction Value, US$ m Buyer Country
2022 Ekobit 75 5.1 Span Croatia
2021 Diverto - - Generali Growth Equity Croatia
2021 FIVE (Pet Minuta) 157 34.6 Endava Croatia
2021 SV Group 115 7 Prosperus Croatia
2021 Neos 90 7 Prosperus Croatia
2021 Blazing Edge 40 - Dept Croatia
2021
Megatrend Business
Solutions
20 - Comping Croatia
2021 Node Factory 10 - ChainSafe Croatia
2020
Altus Information
Technology
700 - Interxion Croatia
2021 IT Sluzby - - Solitea Czech Republic
2021 CN Group 360 - Ciklum Czech Republic
2021 Komix 300 - Aricoma Group Czech Republic
2021
Software Development
Europe
150 - 3Pillar Global Czech Republic
2021 DataSentics 100 - Atos Czech Republic
2021 Servodata 50 1.7 Bittnet Czech Republic
2021 Daquas 10 - ALSO Czech Republic
OTHER CEE COUNTRIES (2/5)
Major delivery location in:
39

40. Year Target Est. # of employees Transaction Value, US$ m Buyer Country
2020 AXIOM PROVIS 60 - Solitea Czech Republic
2020 TurboConsult 15 - Asseco Central Europe Czech Republic
2022 Skelia 350 - Nortal Estonia
2021 Icefire 110 - Checkout.com Estonia
2021 Iteraction 64 - Primend Estonia
2020 T2T 100 - Helmes Estonia
2022 Starschema 200 42.5 HCL Technologies Hungary
2022 Telegroup 160 - 4iG Hungary
2021 DTSM - - 4iG Hungary
2021 Spacecom - 68 4iG Hungary
2021 Digi 1000 638 4iG Hungary
2021 ALBtelecom 800 - 4iG Hungary
2021 Invitech Solutions 600 - 4iG Hungary
2020 LeanNetworking - - Adesso Hungary
2020 Banzai Cloud - - Cisco Systems Hungary
2020 Innobyte 100 - 4iG Hungary
2020 TR Consult 10 - 4iG Hungary
OTHER CEE COUNTRIES (3/5)
Major delivery location in:
40

41. Year Target Est. # of employees Transaction Value, US$ m Buyer Country
2021 Frakton 70 - Melon Kosovo
2020 T2T 100 - Helmes Latvia
2021 Devbridge 600 268 Cognizant Lithuania
2021 Satalia 80 - WPP Lithuania
2021 Estina 30 - Boozt Lithuania
2020 Zenitech 209 - Sovereign Capital Lithuania
2021 Tacit Knowledge 180 - Grid Dynamics Moldova
2021 DAS Solutions 25 - Cegeka Moldova
2021 Codeflair - - Valtech North Macedonia
2022 HTEC Group 1381 140 Brighton Park Capital Serbia
2022 Telegroup 160 - 4iG Serbia
2022 Software Nation 40 - DataArt Serbia
2022 Vivify Ideas 40 EPAM Systems Serbia
2021 MD & Profy - - mLogica Serbia
2021 Omni Logika - - mLogica Serbia
2021 Momentum Design Lab 30 - HTEC Group Serbia
2020 Zilker 400 - Ernst & Young Serbia
OTHER CEE COUNTRIES (4/5)
Major delivery location in:
41

42. Year Target Est. # of employees Transaction Value, US$ m Buyer Country
2020 Comtrade Digital Services 316 70.34 Endava Serbia
2020 EXECOM 200 - HTEC Group Serbia
2021 TITANS freelancers 35 - Sandberg Capital Slovakia
2020 TurboConsult 15 - Asseco Central Europe Slovakia
2021 NiceLabel - - Loftware Slovenia
2021 Centra Technologies 245 - Symphony Technology Slovenia
2020 Iskratel 900 39 S&T (Kontron) Slovenia
2020 Crea 120 - nChain Slovenia
2020 AXIOM PROVIS 60 - Solitea Slovenia
2020 Equaleyes 20 - nChain Slovenia
OTHER CEE COUNTRIES (5/5)
Major delivery location in:
42

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

44. Revenue
US$ 871m (TTM)
US$ 227m
(Q2 FY22)
EBITDA
US$ 166m (TTM)
US$ 41m
(Q2 FY22)
Revenue CAGR, 2018-22
32% y-o-y
# of employees
11,853
(Q2 FY22)
Delivery geography, Q2 FY22
European Union: 57%, Europe Non-EU: 24%, Latin America: 16%,
North America: 3%, APAC: <1%
Revenue % by vertical
Payments and financial services: 51%, tech,
media and comm-s: 25%, other 24%
(Q2 FY22)
2015 2016 2018
2018. IPO on NYSE.
2019 2020 2021 2022
2014
Alpheus Solutions
(DE/UK) ISDC (RO, BG)
PSTECH (RS);
Nickel Fish Design (US)
Velocity Partners (AR,
UY, CO, VE)
IPO on NYSE
Intuitus Limited
(Scotland);
Exozet (DE)
Comtrade Digital
Services (SI, RS, BA)
FIVE (HR, US);
LEVVEL LLC (US, MX)
Business Agility
Consulting (UK)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
44

45. Revenue
US$ 4,462m (TTM)
US$ 1,195m
(Q2 FY22)
EBITDA
US$ 698m (TTM)
US$ 63m
(Q2 FY22)
Revenue CAGR, 2016-2021
27% y-o-y
# of employees
61,300
(Q2 FY22)
Delivery geography
North America: 60%, EMEA: 35%, CEE: 2%, APAC: 3%
Revenue % by vertical, Q2 FY22
Travel & consumer: 23%, financial services:
21%, business Information & Media: 17%,
software & hi-tech: 16%, emerging 12%,
healthcare: 11%
2003 2004 2006 2008 2009 2010 2012
VTB Capital
Merifin Capital
Lintec Project
(BY)
Fathom
Technology (HU)
B2BITS Corp. (US/UA);
Plus Micro (KZ)
Rodmon Systems
(US/BY)
Spline
Software (UA)
Instant Information
(US/BY)
Thoughtcorp (CA);
Empathy Lab (US)
2012. IPO on NYSE.
Siguler Guff (US)
Vested
Development Inc. (RU)
2007
Renaissance Investment
Management;
Da Vinci Capital;
Euroventures Capital IPO on NYSE
1/2 *
*to be continued on the next slide
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
45

46. 2014 2015 2016
NetSoft (US);
Great Fridays (US);
Ozsoft (AM);
GGA Software Services (RU);
Joint Technology Development
(CN);
NavigationArts (US);
Alliance Global Services (US)
Dextrys (CN);
InfomatiX (HU)
Continuum (US);
TH_NK (UK)
2012. IPO on NYSE.
2018 2019
NAYS (ISR);
Competentum Group (RU, BY);
test IO (US, DE, UA)
2020
Ricston (MA, UK, ES)
2022
Just-BI (NL);
White-Hat (ISR);
CORE SE (DE);
Seven4N (CO);
PolSource (PL, US)
2/2
Revenue
US$ 4,462m (TTM)
US$ 1,195m
(Q2 FY22)
EBITDA
US$ 698m (TTM)
US$ 63m
(Q2 FY22)
Revenue CAGR, 2016-2021
27% y-o-y
Delivery geography
North America: 60%, EMEA: 35%, CEE: 2%, APAC: 3%
2021
ENGINIETY (PL)
Superhub (US)
Vivify Ideas (RS)
# of employees
61,300
(Q2 FY22)
Revenue % by vertical, Q2 FY22
Travel & consumer: 23%, financial services:
21%, business Information & Media: 17%,
software & hi-tech: 16%, emerging 12%,
healthcare: 11%
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
46

47. Revenue
US$ 273m (TTM)
US$ 77m
(Q2 FY22)
EBITDA
US$ 49m (TTM)
US$ 13m
(Q2 FY22)
Revenue CAGR, 2017-21
24% y-o-y
# of employees
3,763
(Q2 FY22)
Delivery geography
Europe (85%), Americas (12%), Rest of the world (3%)
Revenue % by vertical, Q2 FY21
Retail: 33%, tech, media, and telecom:
30%, CPG/Manufacturing: 21%, other:
10%, finance: 6%
2016
ASL acquires Grid
Dynamics Raised US$15M from BGV
2020. IPO on NASDAQ via spin-
off with a MCAP of US$ 600m
IPO on NASDAQ
2019
2015
Raised US$1.5M Series
B from BGV
2020
Daxx (UA)
2021
Tacit Knowledge (UK, MO)
Qubell/Tonomi (US) ChaSerg Technology, a
shell NASDAQ company
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
47

48. Vertical expertise:
Pharmaceuticals, financial
services, TMT, Automotive
# of employees
3,500
(2022)
Delivery geography
Eastern Europe including Poland,
Ukraine, Malaysia
2012 2017 2018 2019
CoreValue (UA);
Solid Brain (PL)
Cornerstone Partners and
Oaktree Capital Management
acquire IT Kontrakt
2018 - 2019. A series of
acquisitions and mergers to form a
platform company
2021
IT Kontrakt, Sevenval (DE), CoreValue
(UA) and SolidBrain (PL) join forces to
form Avenga
Formerly IT Kontrakt
WorkService
acquires IT Kontrakt
Revenue
>US$ 125m
(FY 2020)
Perfectial (UA)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
48

49. EBITDA
US$ 1.6m (TTM)
US$ 0.2 (Q1
FY22)
Revenue CAGR, 2017-21
30% y-o-y
# of employees
200
(2022)
Revenue % by vertical
Software Development & Cybersec: 64%,
Lab Systems: 15%, Venture Building: 11%,
Digital Design & Marketing: 8%, Holding
services: 2% (Q1 FY22)
2015 2017 2018 2019
LIT (PL, IN)
Qburst (PL)
Order of Code (PL)
GSW Technologies (PL)
SoftwareHut (PL)
2021. IPO on WSE
2021 2022
Javeo Software (PL)
Olsoft (PL)
Evertop (PL)
Brainhint (PL)
Kiss Communications (PL)
Kiss Digital (PL)
IPO on WSE
2016
LemonTea (PL)
Revenue
US$ 16m (TTM)
US$ 4m
(Q1 FY22)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
49

50. Revenue
US$ 40m (TTM)
US$ 37m (FY 2021)
EBITDA
US$ 11m (TTM)
US$ 10m (FY 2021)
Revenue CAGR, 2017-21
>10% y-o-y
# of employees
950 (2022)
Revenue % by vertical
Services: 80%, products: 19%, other
services: 1%
(1Q 2022)
2018 2019
UCMS Romania (RO)
2021. IPO on BVB
2021
Enea’s Software Development Services (RO);
Nordlogic Software (RO)
CoSo (NL);
SAS Grup (RO;
SkyShield Magyarorszag (HU);
2022
Berg Software (RO)
IPO on BVB
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
50

51. Revenue
US$ 304m
(FY2021)
EBITDA
US$ 28m
(FY2021)
Revenue CAGR, 2016-21
>10% y-o-y
# of employees
5,500
(2022)
Delivery geography
Belgium: 52%, The Netherlands: 29%, Germany:4% Italy:4% Others:
11%
Revenue % by vertical
Infrastructure: 34%, Professional
Services: 26%, Applications: 20%,
Business Solutions: 14%, Other: 6%
(FY2021)
2005 2011
Cortex (FR)
2014 2016 2018 2020 2021
2020-2022. A series of
acquisitions in Benelux
countries
2022
2009
Inside (RO)
NSI IT Software &
Services (BE) BRAIN FORCE (CZ)
Danube IT
Services (AT, GE)
Solutions
Factory (AT)
KPN ICT
Consulting (NE);
Finavista (NE);
Gridmax (BE);
Citymesh (BE);
Smartschool (BE);
DAS Solutions (MO)
Solver Sweden (SE);
DexMch (BE)
2017
Gimv
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
51

52. Revenue
>US$ 100m
# of employees
2,000
(2022)
Verticals
E-Commerce, Marketing Tech, SaaS,
TMT
2013 2021
2018 2019
2021-2022. Series of
acquisions, expending
to Latam and APAC
2022
BDC Capital Salesforce Ventures
iFactory Solutions (BR) Blueleaf (UK)
Delta-v Capital; True Blue Partners;
Salesforce Ventures
Delta-v Capital;
Salesforce Ventures Sunstone Partners
Kolekto (BR)
Datarati (AU)
FitForCommerce (US)
Werise (BR)
Paladin Group (FR)
Relation 1 (CA)
Adept Group (NZ)
Delivery geography
U.S., UK, France, Germany, Brazil, Spain, Romania,
Ukraine, Colombia, and Japan
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
52

53. Vertical expertise:
Automotive, Financial Services,
Consumer Services, Industrial,
High Tech, Media &
Communications
# of employees
~3,000
(2022)
Delivery geography
Poland, Ukraine, Asia,
US, Germany
2012 2014 2015 2017 2019
Investment in FDV
Solutions (AR);
iNTENCE (DE)
Acquisition
Kupferwerk (DE)
2014 - 2019. A series of bolt-on
acquisitions. In 2019, acquired by
Mid Europa Partners
Enterprise Investors
Revenue
~US$ 100m
(FY 2021)
2021
Acquired by Mid
Europa Partners
Revenue growth
11% y-o-y
(Q1 2020)
Ammeon (IRL)
Spark Digital (AR)
Simtlix (AR)
Enterprise Investors;
Merged with SMT
Software (PL)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
53

54. Revenue
US$ 1.2b
(FY2021)
Revenue growth, 2018-21
25% y-o-y
# of employees
26,500+
(2022)
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%
2000 2006 2008 2009 2010 2011 2013 2016
New Atlantic
Ventures
Sequoia Capital;
New Atlantic Ventures;
New Enterprise Associates Goldman Sachs
Apax Partners acquires
GlobalLogic
Canadian Pension Plan
Investment Board acquires
48% stake from Apax
Westbridge Capital;
New Enterprise Associates
Lambent Technologies (IN);
Bonus Technology (US/UA)
InterObject (ISR);
Cubika (AR)
Rofous Software (IN);
Method Incorporated
(US/UK)
REC Global (PL)
2021. Acquired by Hitachi at
EV/Revenue multiple of 7.9x
2019
Assign (SE);
Skookum (US)
ECS Group (UK);
Meelogic (DE/PL)
2017 2021
Acquired by
Hitachi
2020
EBITDA
US$ 179.5m
(FY 2020)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
54

55. Revenue
US$ 907m
(FY 2018)
EBITDA
US$ 112m
(FY 2018)
Revenue CAGR, 2014-18
23% y-o-y
# of employees
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)
2006 2008 2012 2013
IT Consulting
International (US)
ITC Networks (RO)
Freedom
OSS (US)
Radius Inc (US);
Mecel Populus
Suite (SE)
Pelagicore (SE);
Symtavision (DE);
InSysGroup (US)
2014 2015 2016 2017 2018 2019
derivIT (SG);
UnafortiS (CH);
IntroPro (UA)
Objective
Software (DE);
Smashing Ideas
(US)
VTB Capital
IPO on NYSE
2019. Acquired by DXC
Technologies at ~2x EV
/ Revenue
2020
CMORE
Automotive (DE)
Acquired by DXC
Technologies (US)
Excelian (UK)
Acquisitions (gr | IPO lue) | PE & funds attracted (red)
55