The leading Russian outsourcing software company, Luxoft, acquired the leading Romanian telecoms software outsourcing company, ITC Networks, from the company’s management and financial investors. The acquisition shall create a new leader in software service outsourcing in Eastern Europe with more than 3,000 employees and annual run rate of over $150 million. According to business daily Vedomosti, the deal could be valued at $50 million.
Luxoft, which is a member of IBS Group, reported revenues of $107 million in 2007, up 48% from 2006. Luxoft, which was founded in 2000, is headquartered in Moscow and has software development centers in Russia (St. Petersburg, Dubna, and Omsk), Ukraine (Kiev, Odessa, Dnepropetrovsk), Canada (Vancouver), and Vietnam. The company has sales offices in the U.S., UK, and Germany.
ITC Networks, which was founded in 2000, has over 600 employees. The company reported revenues of $27 million in 2007. Its clients include Avaya, Nortel Networks, and Trapeze Networks.
Luxoft competes with EPAM that recently raised $50 million from two private equity funds.