The venture capital fund, Early Stage Alternative Fund, managed by Renova Capital agreed to acquire a controlling stake in machine translation software and service provider PROMT.
According to business daily Vedomosti, the fund acquired just over 51% stake in PROMT from its founders and will raise its stake in next two years by investing additional funds. The proceeds will be used to open additional sales offices, including one in the U.S. The newspaper cities expert estimates that PROMT should have generated revenues of $10 million in 2007 and the fund paid $10 million for control over the company.
PROMT was founded by its CEO, Svetlana Sokolova, and CTO, Alexander Serebryakov, in St. Petersburg in 1991. The company is headquartered in St. Petersburg and has sales offices in Moscow and Hamburg, Germany.
PROMT provides machine translation for seven languages: English, German, French, Spanish, Portuguese, Italian and Russian, with a total of 24 translation directions.
According to the company, PROMT holds 10% of the global machine translation software market.