The 2nd largest Russian IT service company TechoServ A/S has acquired 74% shares in outsourcing software provider Reksoft from Estonian venture firm Martinson Trigon Venture Partners (MTVP) and the Reksoft management. The management retained the remaining 26% shares in the company. According to the Russian business daily newspaper Vedomosti, the value of the acquisition was estimated at $25 million based on the company’s valuation of 1.5 times annual sales. That would imply that MTVP should have realized a gross IRR of more than 70% or 5 times invested capital.
Founded in 1991, St.Petersburg-based Reksoft reported revenues of $22.6 million in 2007. The company employs 400 software developers in offices in Russia, Germany and Sweden. Its clients included Dirol Cadbury, Fujitsu Siemens Computers, Siemens, Mazda, Philip Morris, and TietoEnator as well as Russian oil & gas companies and power utilities.
In November 2005, Martinson Trigon Venture Partners invested $2 million for a 30% stake in Reksoft.
Founded in 1992, TechoServ reported sales of $1,157 million in 2007, up 54% from 2006. More than 80% of sales came from IT system integration, including distribution services in Russia and the CIS countries. The company has more than 1,500 employees. According to IDC, TechnoServ had 6.2% share of the Russian IT service market, valued at $ 4.4 billion in 2007. In January 2008, TechnoServ acquired the leading CRM solutions provider in Russia, Sputnik Labs, from private equity firm Sputnik Group and the company’s management.
Martinson Trigon Venture Partners (MTVP) is a $30 million private equity partnership that focuses on technology, media and telecom related investments in Russia and the Baltic countries. MTVP is founded and managed by Estonian technology & media entrepreneur and investor Allan Martinson. Its investment portfolio includes a data integration software provider InvisibleCRM, web hosting provider Hostex, music television broadcaster TVCorp, and computer game publisher and distributor Noviy Disk.