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Polish IT consortium Euvic Group acquires Ukrainian Web3 company Artkai
Mergewave Capital
22.02.2024
3 Min Read
Artkai, specializing in digital products for FinTech, PropTech, and MarTech, joins the Polish IT consortium Euvic Group. Mergewave Capital was facilitating the takeover.
Key Facts
With its integration into Euvic Group, Artkai will be able to enter new markets and expand its client base. For Euvic Group, this represents a strategic partnership with a shared vision for further development.
As the founder of Artkai Yehor Shakala notes:
It is important for us to become part of a larger company that has successfully invested and developed more than a dozen service companies. We understand that the world crisis will pass, and we hope that Ukraine will win the war soon. By uniting now, we will grow easier. If we speak more broadly, each new project is exactly the kind of help that benefits investors and at the same time helps the economy and people of Ukraine.
As Pavlo Karapinka, co-founder of Mergewave Capital emphasized:
This agreement demonstrates that the interest of foreign investors in our IT market remains consistently high. Currently, mergers and acquisitions are a very good way for Ukrainian companies to find new points for growth.
Taras Bachynskyi, co-founder of Mergewave Capital stated:
Strategic partnership and entry into a large international IT corporation can provide many advantages for Ukrainian IT developers: additional financial capital for expansion or solving current problems; their experience in improvement of company management, for example, in Euvic there are joint meetings of all managers, a kind of CEO community; access to new markets, because it is impossible to get large enterprise orders if you are not an enterprise-level company yourself; cross-selling in the middle of a group of companies or some technological stack that can be closed to its customers; the umbrella of a strategic partner helps to survive difficult times in the industry, and to share both successes and risks. One of the less obvious benefits is that a company’s capitalization can grow from such a takeover.
Although we cannot disclose the value of the transaction, I must note that Euvic does not seek profit from cheap valuations and all acquisitions that are still planned in Ukraine are carried out at the highest EBITDA multipliers that were characteristic of the sector before the war and the recession that is possible already started.
Context
Artkai has been on the market since 2014 and specializes in application development for the FinTech, PropTech, MarTech and digitalization industries for SMBs/SMEs. The main clients are companies from the USA and Europe. The headquarters of the company is located in Ukraine, but there is also a representative office in Belgium, Switzerland, the USA and Great Britain.
Euvic Group has been working in the Polish IT market for 18 years, the company has a global workforce of about 6,000 employees. Despite the war and the global crisis, Euvic Group representatives see the great potential of the IT sector in Ukraine.
Earlier Euvic acquired a share of another Ukrainian company Exoft and plans a series of investments in IT outsourcing companies in Ukraine, the main requirements are a company of 50-150 people in Ukraine with expertise in .net and web development.
Euvic Group
Artkai
FinTech
Strategic partnership
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