The consortium of private equity funds managed by UFG Asset Management, Baring Vostok Capital Partners (BVCP) and Tiger Global Management has acquired 9 percent shares in Russia’s leading search engine company, Yandex for $100 million from private investors and shareholders, reported Vedomosti. The transaction valued Yandex at $1.1 billion. The private equity funds managed by BVCP, Tiger, Runet and UFG now own about 60% shares in Yandex.
As part of the deal, Oradell Capital, a venture capital fund of IBS Group sold its 1 percent shares in Yandex to the funds. IBS Group obtained the stake in Yandex after selling online shopping catalog site Podberi.ru to it in November 2001. The site was integrated into Yandex.Market. As a result of the sale, IBS Group received $11 million. This is about 10 times its investment in Podberi.ru in 2000.
Being the largest Russian internet company, Yandex generated revenues of more than $300 million and net income of $100 million in 2008. The Russian internet advertising market reached $600 million in 2008.