Israel IT wants to buy several small Ukrainian outsourcers
Israel IT aimed at buying Ukrainian companies (Photo:unsplash.com)
Israel-based company Mergewave Capital has signed a deal with software developer Israel IT under which Mergewave will look for IT companies in Ukraine suitable for mergers, Mergewave co-founder Taras Bachynskyi told AIN.Capital online media outlet on April 24.
In particular, the Israeli company plans to acquire outstaffing and outsourcing companies in Ukraine with 50-200 specialists.
As noted, this is a strategic step for Israel IT, which plans to expand on the international market.
AIN.Capital reported that the deal may include Israel IT’s purchase of 51% of the company’s share (50% cash out, 50% option in the 107 Ltd group of companies). At the same time, the main goal of such a merger is further growth together.
According to Bachynskyi, Israel IT is ready to acquire the rest of the company within the next three or five years based on the market valuation and in the case of an increase in its revenues.
Israel IT itself has 300 employees and specializes in enterprise software development. The company is part of Group 107 Ltd, which is listed on the Tel Aviv Stock Exchange. The deal will allow the absorbed company to receive part of the shares of this public company.
Meanwhile, Mergewave Capital will act as an investment advisor to Israel IT.
Earlier Poland-based IT company Euvic Group acquired the Ukrainian software supplier Exoft.
The exact amount of the deal is unknown, but it is likely to be less than $1 million.
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