The deal sets a consolidation benchmark in a fragmented IT services market in Russia.
The merger of IBS and Borlas Consulting Group, which was completed on October 29, created the leading provider of IT services in Russia with consolidated revenues of $370 million in 2006. The merged company IBS was formed through a share swap with 77% and 23% of shares held by IBS Group and Borlas shareholders, respectively. The merger was first announced in April 2007.
IBS is part of IBS Group that includes PC manufacturer Depo Computers and Russia’s largest provider of high-end IT outsourcing and software development services Luxoft.
According to IDC research, IBS holds 7% of the Russian IT services market valued at $3 billion in 2006 and over 20% of the business applications implementation segment. The total headcount of IBS is over 3,500 employees including 1,500 certified consultants.
In December 2005, IBS Group completed a $109 million private placement of its ordinary shares in the form of Global Depository Receipts (GDRs). In February 2007, GDRs were listed and began trading on the Frankfurt Stock Exchange.