Comprehensive coverage of M&A activity in Software Development (IT Outsourcing) industry in CEE region YTD 2021

1. CEE software development:
M&A report 2021
October 2021
CEE software development:
M&A report 2021
October 2021
CEE software development:
M&A report 2021
October 2021

2. CEE Software Development M&A in 2021: Executive Summary
2
Key messages of 2021 YTD
Public companies share
price is soaring
• Peak stock performance for public companies with significant CEE presence (record high
revenue y-o-y growth & ~x2 up multiples for leading CEE public companies) as global economy
grows & demand for digitalization and IT services surges post Covid-19 suppression
M&A activity is on the rise,
on track to x2
• More deals in 1H 2021 than during the entire year of 2020, which guarantees a record M&A count
in FY 2021 for the CEE region
Multiples’ inflation
• High demand for inorganic growth in addition to record high public companies’ performance
drives purchase multiples for private companies. It is sellers’ market now
Trend for consolidation
• Most mid to large companies have hundreds or thousands of open positions. There is a war for
talent out there and we see significant double digit increase in salaries for engineers
• In such a market, stronger players might demonstrate extraordinary performance while weaker
companies might struggle
M&A / IPO play
• Well funded CEE companies, who are preparing for IPO/liquidity events, continue their vector for
expansion through M&A in the CEE region with most deals still in progress, potentially to be
announced in the next 3-6 months

3. 3
-100%
0%
100%
200%
300%
400%
500%
600%
Oct, 2018 Mar, 2019 Jul, 2019 Dec, 2019 Apr, 2020 Aug, 2020 Jan, 2021 May, 2021
505%
162%
450%
548%
68%
20%
67%
41%
H1 2021* YTD**
Since Oct,
2018**
Globant 4% 76% 548%
[Endava] 54% 146% 505%
[Epam] 47% 93% 450%
[Grid Dynamics] 22% 233% 162%
Alten 22% 95% 68%
S&P500 16% 28% 67%
Devoteam 14% 29% 41%
Cognizant -12% 15% 20%
*January 1 – June 30, 2021
**Data as of August 26, 2021
Record stock performance for public
companies as market bounces back after
Covid-19 (1/2)
During 2020-2021, companies with delivery in CEE
(Endava, Epam & Grid Dynamics) on average grew
faster than those in different geographies
Source: Yahoo Finance, AVentures Capital
[
]
–
companies
with
significant
delivery
in
CEE
Globant
Endava
Epam
Grid
Dynamics
Alten
S&P500
Devoteam
Cognizant

4. Record stock performance for public companies as market bounces
back after Covid-19 (2/2)
4
Company 6M y-o-y revenue CAGR, % GM, % EBITDA, % EV/S EV/EBITDA
Epam 24% 34% 17% 9.2x 54.7x
Grid Dynamics 26% 40% 17% 6.3x Negative
Endava 27% 34% 20% 14.1x 80.1x
AVERAGE 9.9x 67.4x**
MEDIAN 9.2x 67.4x**
Globant 32% 38% 15% 8.5x 51.2x
Alten 8% 10% 11% 1.5x 18.6x
Devoteam 12% 12% 14% 1.1x 9.5x
Cognizant 4% 37% 16% 2.1x 11.7x
Accenture* 7% 32% 19% 4.1x 22.0x
Perficient 14% 38% 14% 4.8x 27.0x
Zensar 2% 27% 19% 1.7x 8.5x
Wipro 8% 36% 23% 4.6x 20.0x
Tech Mahindra 7% 33% 19% 2.2x 12.0x
Infosys 13% 34% 28% 6.1x 22.3x
AVERAGE 3.7x 20.3x
MEDIAN 3.1x 19.3x
*As of August 31, 2021
** Excluding Grid Dynamics negative EBITDA
CEE
Rest
of
the
world
Source: AVentures Capital, Yahoo Finance, WSJ

5. 360
CEE, Czech Republic
10
+
Aug. 2021
375
Romania
9
+
Oct. 2020
400
Poland
8
+
Jul. 2021
400
Ukraine
7
+
Dec. 2020
+
636
Romania
6
+
Nov. 2020
710
Romania
5
+
Aug. 2021
1,100
Belarus
4
+
Mar. 2021
1,200
Ukraine
3
+
May 2021
4,000
CEE
2
+
Dec. 2020
+
20,000
CEE
1
+
Mar. 2021
Top-10 largest publicly disclosed deals during the last 12 months
5
Target
Buyer
Target’s # of EE and location
Source: AVentures Capital
*Ranked by size of delivery in CEE

6. What most large acquirers
seek for…
6
1
Mid-market and/or enterprise clients
with long term contracts
Above the market average 30+% y-o-y
consistent revenue growth
Company’s ability to retain and win new
large contracts, so most of the revenue
is recurring
High EBITDA (over 15%) and Gross
Margin (over 40%)
Founders’ willingness to stay for 2-4
years post acquisition
Strong recruitment function able to close positions in
the heated market
2
3
4
5
7
6 Distinguished employee culture resulting in solid
talent retention
Other strategic rationales might play a role depending
on an acquirer: type of delivery, technology
specialization, industry vertical, business model etc.
8

7. Vertical capabilities
• Acquisition of new verticals or deepening of existing capabilities
Deal example: Hitachi – Global Logic, 2021 (acceleration of social
infrastructure transformation)
Delivery diversification
• New delivery geographies to diversify market / political risks
• Delivery in new countries/regions enables to tap into talent pool
Deal example: Grid Dynamics – Tacit Knowledge, 2021 (UK, US,
Mexico, Moldova)
Client acquisition
• Acquisition of new clients or enhancement of current client profile
• Small players can be attractive depending on their client profile
Deal example: Accenture – Trivadis, 2021
Scale
• Enables companies to bid for larger projects
Deal example: Astound Commerce – MarketForce, 2021
We expect established players to
continue consolidating a fragmented
market
Technical / language capabilities
• Enhancement of tech teams is faster via M&A
than through organic growth
Deal example: OSF – Werise, 2021
And key strategic rationales
driving M&A roll-on strategy
7
Inorganic growth is a way for established
players to expand capabilities, client portfolios
and scale

8. 5
21 22
32
27
30
38
2015 2016 2017 2018 2019 2020 2021*
Selected PE funds active in the region
A growing number of strategic players active in acquisitions
Count of M&A deals announced in Ukraine,
Poland, Belarus, Romania in 2015-YTD 2021
Source: AVentures Capital
8
Attractiveness of the software development outsourcing
industry persists
Despite low M&A activity in Belarus, there were more deals
during 9 months of 2021 in CEE than during any other year
Many more deals are in progress to be announced in the
next 3 - 6 months
Result: consistently high M&A
activity in the region in 2019 - 2021
*YTD

9. Industry leaders expand through
M&A, pursuing IPO / exit play
At least 5 well-funded CEE players with revenue
from US$50M to US$100M+ are expanding
through M&A with the aim of IPO / exit play
Our insights into recent private companies
deals demonstrate that implied EV / Revenue lies
in 1x-2.0x range and EV / EBITDA in 6.0x-15.0x
range. There are, however, exceptions with
transactions at higher multiples
9
Examples
Public companies receive highest multiples with
some reaching x5-11 EV / Revenue and up to x80
EV / EBITDA vs multiples we observe with private
companies. Thus, public companies have stronger
financial incentives to pursue M&A
Germany
Argentine
Merged from:
Krakow
Note: “Ukraine / Belarus” or “Lviv” – main delivery locations
Belarus / Russia
Russia / Ukraine /
Poland / Argentine
Lviv
Ukraine / Belarus
/ Poland / Spain
Germany
Netherlands /
Ukraine /
Germany
Lviv
Germany
Moldova / UK /
Mexico / USA
Czech Republic

10. Salaries inflation for Software
Engineers in CEE
10
$700
$1 830
$600
$800
$1 900
$590
$2 000
$3 255
$2 700
$2 200
$3 820
$2 500
$3 610
$4 330
$3 125
$4 000
$5 120
$3 500
Ukraine Poland Belarus
Middle SE Middle SE Middle SE
Senior SE Senior SE Senior SE
'20 '20 '20 '20 '20 '20 '20 '20 '20
'21 '21 '21
'21 '21 '21
'21 '21 '21
Junior SE
Junior SE
Junior SE
Source: dou.ua, salaries.dev.by, mycompanypolska.pl, AVentures Capital
On average the salary of the Software Engineer in CEE grew
by at least 10% since June 2020. Biggest inflation is seen in
Poland and Ukraine for Senior tech talent
Amid surging demand for SoftDev services, the salaries of engineers continue to climb with the most significant increase for
senior tech talent. Most of the mid to large companies have hundreds of open positions
Net salaries, US$

11. Selected CEE Top-50
Largest IT service players with delivery in CEE
An increasing number of companies cross the US$25m in revenue mark. Out of 55* largest IT service companies, 11 make
over US$100m in revenue and another 7 exceed the US$ 200 mark
Estimated annual revenue, US$
25-50 m 50-100 m 100-200 m >200 m
Illustrative
* Includes companies with significant presence in CEE

12. Appendix 1: deals table
2015 – YTD 2021

13. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2021 Astound Commerce 1200 (2021) - RLH Equity Partners
2021 Intellica Group 40 (2021) - Digicode
2021 CN Group 360 (2021) - Ciklum
2021 Polyteda Cloud 32 (2021) - Silvaco
2021 Tacit Knowledge 180 (2021) - Grid Dynamics
2021 GlobalLogic 15868 (2021) 9600 Hitachi
2021 X1 54 (2021) - Globaldev Group
2021 Cloudfresh 50 (2021) - InSoft Partners
2021 MarketForce 50 (2021) - Astound Commerce
2021 IdeaSoft 85 (2021) - Sigma Software
2020 Archer Software 125 (2021) - Cprime, Alten
2020 S-PRO 160 (2021) - SARS Capital
2020 Daxx 400 (2021) - Grid Dynamics
2020 Ciklum 3120 (2021) - Recognize Partners
2019 Aducera 200 (2020) - Beetroot
2019 Grid Dynamics 1200 (2020) - IPO
UKRAINE* (1/3)
One can estimate a range for deal value with indicative median annual
revenue per engineer of US$40-60K and deal range of x1-2 EV /
Revenue
13
*Deals include companies with significant presence in Ukraine both on sell side and buy side

14. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2019 Acceptic 150 (2020) - Yael Group
2019 Rozdoum 40 (2020) - InSoft Software
2019 Rademade 60 (2020) - InSoft Software
2019 Logicify 20 (2020) - DataArt
2019 Ciklum 3800 (2020) -
Dragon Capital, AVentures
Capital
2019 Dynamo Development 40 (2020) - SeriesOne
2019 Luxoft 12900 (2019) 2000 DXC Technology
2018 Adyax 350 (2018) - Smile
2018 CoreValue 385 (2018) - IT Kontrakt (Avenga)
2018 Intellias 1220 (2018) - Horizon Capital
2018 Applikey 160 (2019) - SSA
2018 DataArt 2500 (2018) - Da Vinci Capital
2018 WebCodium 12 (2019) - Apriorit
2018 GlobalLogic 12000 (2019) 960 Partners Group
2017 Stanfy 20 (2017) - IntellectSoft
UKRAINE (2/3)
14

15. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2017 GlobalLogic 12000 (2019) - CPPIB
2017 IntroPro 500 (2017) 28 Luxoft
2017 Grossum 57 (2017) - The APP Solutions
2017 Grid Dynamics 1000 (2018) 118 ASL
2016 Lohika 700 (2016) - Altran
2016 CoreValue 385 (2018) -
InSoft Capital,
AVentures Capital
2015 Ciklum 3500 (2019) - Soros Funds
UKRAINE (3/3)
15

16. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2021 Skyrise.tech 80 (2021) - Etteplan
2021 Evertop 50 (2021) 1 TenderHut
2021 Polidea 70 (2021) - Snowflake
2021 ValueLogic 80 (2021) - Software Mind
2021 SNP Poland 400 (2021) - All for One Group
2021 Ammeon 200 (2021) intive
2021 Pro4People 18 (2021) Star
2021 PolSource 308 (2021) - EPAM Systems
2021 Software Mind 160 (2021) 30 Enterprise Investors
2021 Delv Global 13 (2021) - Vox Financial Partners
2021 Veracomp 257 (2021) - Exclusive Networks
2020 Maise n/a - ITMagination
2020 Cervi Robotics n/a - Dronehub
2020 Craftware 86 (2021) - BlueSoft (Orange)
2020 Sage Group PLC 177 (2021) 91 Mid Europa Partners
2020 Codewise 158 (2021) 36 CentralNic
2020 SimplicITy 42 (2021) - Ricoh
POLAND* (1/4)
16
*Deals include companies with significant presence in Poland both on sell side and buy side

17. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2020 Meelogic 300 (2020) - GlobalLogic
2019 Core Services n/a - Astek Group
2019 Prosoftlab 14 (2019) - Astek Group
2019 7ninjas 12 (2019) Netguru
2019 Olsoft n/a - TenderHut
2019 Javeo Software 25 (2019) - TenderHut
2019 BlueSoft 650 (2019) 50 Orange Polska
2019 Sevenval 200 (2019) - Avenga
2018 ORBA 90 (2018) - Lingaro
2018 Bitcraft 41 (2018) Netguru
2018 Intive 1600 (2018) 100 Mid Europa Partners
2018 ORBA 80 (2019) - Lingaro
2018 Fast White Cat 100 (2019) 0.6 SARE S.A.
2018 Order of Code 15 (2019) - TenderHut
2018 Appchance 37 (2019) 0.3 R22
2018 Nexelem n/a - Virtus Lab
2018 Goyello 120 (2018) - Aspire Systems
POLAND (2/4)
17

18. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2018 Solid Brain 200 (2018) - IT Kontrakt
2018 GSW Technologies n/a - TenderHut Group
2017 ReeWise 11 (2019) - Exadel
2017 itWORKS n/a - Euvic, 3S Group
2017 Coders Center 75 (2017) - SoftServe
2017 iNTENCE 100 (2017) - Intive
2017 IT Kontrakt 1300 (2016) 33
Oaktree Capital /
Cornerstone Partners
2017 FDV Solutions 100 (2017) - Intive
2017 Sensinum 16 (2017) - Virtus Lab
2017 Qburst Poland n/a - TenderHut
2017 LIT n/a - TenderHut
2017 Edisonda 30 (2017) - Grant Thornton Poland
2017 Vorm n/a - Netguru
2016 AKME Software n/a - Exadel
2016
SMT, BLStream, Kupferwerk
merged into Intive
1200 (2016) - Enterprise Investors
2016 DCC Labs 70 (2016) 7 SeaChange
POLAND (3/4)
18

19. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2016 Grand Parade 200 (2016) 16.6 William Hill
2016
Operations of Ericpol in Poland and
Ukraine
2300 (2016) - Ericsson
2016 Sigmapoint 12 (2019) - Grand Parade
2016 LemonTea n/a - TenderHut
2016 REC Global 500 (2016) - GlobalLogic
2016 ProService 350 (2016) -
Oaktree Capital /
Cornerstone Partners
2016 Ardeo 14 (2019) 0.05 Venture Inc
2016 Outbox 250 (2021) - PwC
2015 SMT Software 700 (2015) 38 Enterprise Investors
2015 El Passion Next 59 (2019) - Daftcode
POLAND (4/4)
19

20. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2021 Zipper Studios n/a - Fortech Group
2021 Software Development Europe 150 (2021) - 3Pillar Global
2021 ITPrepared 50(2021) 0.7 Bittnet (BNET)
2021 Relation1 n/a - OSF Digital
2021
CoreBuild and Core Technology
Services
20 (2021) - Wirtek
2021 Tellence 145 (2021) - Orion
2021 Trivadis 710 (2021) - Accenture
2021 Paladin Group n/a - OSF Digital
2021 Werise 44 (2021) - OSF Digital
2021 Adept Group n/a - OSF Digital
2021 LEVVEL LLC 172 (2021) - Endava
2021 Pet Minuta 157 (2021) - Endava
2021 Gemini Solutions 119 (2021) - ThoughtWorks
2020 SoftOne Romania 45 (2020) - Orosimo Software
2020 Cognetik n/a - Brillio
2020 Tremend Software Consulting 375 (2021) 4.2 EBRD
ROMANIA* (1/4)
20
*Deals include companies with significant presence in Romania both on sell side and buy side

21. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2020 Zenitech 209 (2021) - Sovereign Capital
2020 Whyttest 74 (2021) - Testronic
2020 Comtrade Digital Services 316 (2021) - Endava
2020 3Pillar Global 1052 (2021) - CIP Capital
2020 Tiempo Development 280 (2021) - 3Pillar Global
2020 Isthmus Software 118 (2021) - 3Pillar Global
2020 Citymesh 58 (2021) - Cegeka
2020 iQuest Group 660 (2021) - Nagarro Holding
2020 Udev 6 (2021) - Zitec
2020 Metro Systems Romania S.R.L 1300 (2021) - Wipro
2020 Cyber Smart Defense 12 (2021) - Stefanini
2020 Quantic Lab 218 (2021) 5.6 Embracer Group
2020 PitechPlus 222 (2021) - Webhelp
2020 Accesa 636 (2021) - Ratiodata
2019 Successyou 25 (2020) - OSF Global
2019 Blueleaf 13 (2020) - OSF Global
ROMANIA (2/4)
21

22. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2019 Soul Ecommerce 15 (2020) - OSF Global
2019 Vauban 266 (2020) - GFI
2019 PitechPlus 240 (2020) - Webhelp
2019 Architected Business Solutions 32 (2020) - Totalsoft
2019 BeeSpeed 100 (2020) - ZF
2019 UCMS Romania 14 (2020) - AROBS
2018 iQuest 580 (2019) - Allgeier
2018 BSS-ONE Dueenne 80 (2018) 0.8 Right of Reply
2018 648 Group n/a - Tremend
2018 SAS Grup n/a - Arobs Transilvania
2018 CoSo 10 (2018) 1 Arobs Transilvania
2018 OSF Global 900 (2019) -
HSBC, BDC Capital,
Salesforce Ventures
2018 Softvision 2850 (2018) 478 Cognizant
2018 Architected Business Solutions 50 (2018) - Logo Software
2018 Dendrio Solutions 52 (2021) 5.7 Crescendo International
2018 SkyShield Magyarorszag n/a - Arobs Transilvania
ROMANIA (3/4)
22

23. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2017 MindMagnet 24 (2019) - Pitech Plus
2017 It Six 140 (2019) - QuEST
2017 Zitec 160 (2017) 2 eMAG
2016 ISDC 300 (2016) - Endava
2016 Software Paradigms International n/a - Softvision
2016 LaunchPodium n/a - Qualitance
2016 Kepler-Rominfo 250 (2016) - Alten
2016 Inotec Plus n/a - Zitec
2016 TotalSoft 400 (2016) 30 Logo Software
ROMANIA (4/4)
23

24. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2021 White-Hat 73 (2021) - EPAM Systems
2021 CORE SE 91 (2021) - EPAM Systems
2021 Just-BI 55 (2021) - EPAM Systems
2021 Exadel 1100(2021) - Sun Capital
2020 Ricston 31 (2021) - EPAM Systems
2020 Deltix 80 (2020) - EPAM Systems
2019 Naya Technologies 76 (2020) - EPAM Systems
2019 Competentum Group 80 (2020) - EPAM Systems
2019 Test IO 283 (2020) 17.3 EPAM Systems
2019 OCSICO ~90 (2020) - ScienceSoft
2018 Solbegsoft 250 (2018) - Helmes
2018 Itransition 2000 (2018) - Baring Vostok
2018 Continuum n/a - EPAM Systems
2018 TH_NK 120 (2019) - EPAM Systems
2017 Softline 3500 (2019) 9 Zubr Capital
BELARUS* (1/2)
24
*Deals include companies with significant presence in Romania both on sell side and buy side

25. Year Target Est. # of employees Transaction Value, US$ mln Buyer
2017 Cactussoft 111 (2019) - Litussoft
2017 PointSource 76 (2017) - Globant
2016 Softline 3500 (2019) 36 Da Vinci Capital
2016 Dextrys 300 (2019) - EPAM Systems
2015 NavigationArts 90 (2019) - EPAM Systems
2015 Alliance Global Services 1100 (2015) 45 EPAM Systems
BELARUS (2/2)
25

26. Appendix 2: consolidation /
IPO way of the largest CEE
players

27. Revenue
US$ 557m (TTM)
US$ 155m
(Q3 FY21)
EBITDA
US$ 87m (TTM)
US$ 32m
(Q3 FY21)
Revenue CAGR, 2015-20
33% y-o-y
# of engineers
8,127
(Q3 FY21)
Delivery geography, Q3 FY21
North America: 29%, Europe: 25%, United Kingdom: 43%, Rest
of the world 3%
Revenue % by vertical
Payments and financial services: 53%,
tech, media and comm-s: 27%, other 20%
(Q3 FY21)
2014 2015 2016 2018
2014. Alpheus Solutions (DE/UK)
2015. PSTECH (RS);
Nickel Fish Design (US)
2016. ISDC (RO, BG)
2018. Velocity Partners
(AR, UY, CO, VE)
2018. IPO on NYSE.
2019
2019. Intuitus Limited (Scotland);
Exozet (DE)
Acquisitions
PE / IPO funds
attracted
2020
2020. Comtrade Digital
Services (SI, RS, BA)
2021
2021. Pet Minuta (HR, US);
LEVVEL LLC (US, MX)
2018. IPO
on NYSE

28. Revenue
US$ 3 bn (TTM)
US$ 881m
(Q2 FY21)
EBITDA
US$ 512m (TTM)
US$ 146m
(Q2 FY21)
Revenue CAGR, 2015-2020
24% y-o-y
# of engineers
42,800
(Q2 FY21)
Delivery geography
North America: 59.8%, Europe: 33.0%, CIS: 4.3%, APAC: 2.9%
Revenue % by vertical, Q2 FY21
Business Information & Media: 18%,
financial services: 22%, software & hi-
tech: 18%, travel & consumer: 20%,
healthcare: 10%, emerging 12%;
PE / IPO funds
attracted
Acquisitions 2003 2004 2006 2008 2009 2010 2012
2010. VTB Capital
2006. Vested
Development
Inc. (RU)
2003. Lintec
Project (BY)
2004. Fathom
Technology (HU)
2008. B2BITS Corp. (US/UA);
Plus Micro (KZ)
2009. Rodmon
Systems (US/BY)
2007. Spline
Software (UA)
2010. Instant
Information
(US/BY)
2012. Thoughtcorp (CA);
Empathy Lab (US)
2012. IPO on NYSE.
2006. Siguler
Guff (US)
2007
2008. Renaissance Investment
Management;
Da Vinci Capital;
Euroventures Capital 2012. IPO on NYSE
1/2 *
*to be continued on the next slide

29. Delivery geography
North America: 59.8%, Europe: 33.0%, CIS: 4.3%, APAC: 2.9%
Revenue % by vertical, Q2 FY21
Business Information & Media: 18%,
financial services: 22%, software & hi-
tech: 18%, travel & consumer: 20%,
healthcare: 10%, emerging 12%;
# of engineers
42,800
(Q2 FY21)
Revenue
US$ 3 bn (TTM)
US$ 881m
(Q2 FY21)
Revenue CAGR, 2015-2020
24% y-o-y
EBITDA
US$ 512m (TTM)
US$ 146m
(Q2 FY21)
Acquisitions 2014 2015 2016
2014. NetSoft (US);
Great Fridays (US);
Ozsoft (AM);
GGA Software Services (RU);
Joint Technology
Development (CN);
2015. NavigationArts (US);
Alliance Global Services (US)
2016. Dextrys (CN);
InfomatiX (HU)
2018. Continuum (US);
TH_NK (UK)
2012. IPO on NYSE.
2018 2019
2019. NAYS (ISR);
Competentum Group (RU, BY);
test IO (US, DE, UA)
2020
2020. Ricston (MA, UK, ES)
2021
2021. Just-BI (NL);
White-Hat (ISR);
CORE SE (DE);
Seven4N (CO);
PolSource (PL, US)
2/2

30. Revenue
US$ 143m (TTM)
US$ 47.7m
(Q2 FY21)
EBITDA*
US$ -2.1m (TTM)
US$ 2.5m
(Q2 FY21)
Revenue CAGR, 2015-20
22% y-o-y
# of engineers
2,510
(Q2 FY21)
Delivery geography
Russia, Ukraine, Poland, US
Revenue % by vertical, Q2 FY21
Tech, media, and telecom: 34%, retail:
27%, finance: 9%, CPG/Manufacturing:
20%, other: 10%
2016
2016. ASL acquires
Grid Dynamics
2019. Raised US$15M from BGV
2019. Acquired by ChaSerg
Technology, a shell NASDAQ
company
2020. IPO on NASDAQ via
spin-off with a MCAP of US$
600m
March, 2020. Grid Dynamics
listed on NASDAQ
2019
2015
2015. Raised US$1.5M
Series B from BGV
2020
PE / IPO funds
attracted
Acquisitions
2020. Daxx (UA)
2021
2021. Tacit Knowledge (UK)
2015. Qubell/Tonomi (US)
*based on self reported Non GAAP EBITDA

31. Revenue
US$ 907m
(FY 2018)
EBITDA
US$ 112m
(FY 2018)
Revenue CAGR, 2014-18
23% y-o-y
# of engineers
12,716
(Dec 2018)
Delivery geography
Western Europe: 9%, Poland / Romania / Bulgaria: 31%, Ukraine:
28%, Russia: 18%, North America: 9%, APAC & MEA: 6%
Revenue % by vertical
Financial services: 51%, digital
enterprise: 25%, automotive: 25%
(3Q 2019)
PE / IPO funds
attracted
Acquisitions 2006 2008 2012 2013
2006. IT
Consulting
International
(US)
2008. ITC
Networks (RO)
2013. Freedom
OSS (US)
2014. Radius
Inc (US);
Mecel Populus
Suite (SE)
2015. Excelian (UK)
2016. Pelagicore (SE);
Symtavision (DE);
InSysGroup (US)
2014 2015 2016 2017 2018 2019
2017. derivIT
(SG);
UnafortiS (CH);
IntroPro (UA)
2018. Objective
Software (DE);
Smashing Ideas (US)
2012. VTB Capital
2013. IPO on
NYSE
2019. Acquired by DXC
Technologies at ~2x EV
/ Revenue
2020
2020. CMORE
Automotive (DE)
2019. Acquired by DXC
Technologies (US)

32. Revenue
US$ 771m
(FY2020)
Revenue growth, 2019-20
19% y-o-y
# of engineers
20,000+
(2021)
Delivery geography
India, Ukraine, Argentina, Poland, Slovakia, Croatia, USA, Canada,
Israel, China
Revenue % by vertical, 2018
Media & communications: 30-35%, high
tech and commerce: 30%, medical devices
and industrial engineering: 20-25%
Acquisitions 2000 2006 2008 2009 2010 2011 2013 2016
2000. Founded,
investment by New
Atlantic Ventures
2006. Westbridge Capital;
New Enterprise Associates
2008. Sequoia Capital;
New Atlantic Ventures;
New Enterprise Associates 2010. Goldman Sachs
2013. Apax Partners
acquires GlobalLogic
2017. Canadian Pension Plan
Investment Board acquires
48% stake from Apax
2006. Lambent
Technologies (IN);
Bonus Technology
(US/UA)
2009. InterObject (ISR);
Cubika (AR)
2011. Rofous
Software (IN);
Method Incorporated
(US/UK)
2016. REC
Global (PL)
2021. Acquired by Hitachi at
EV/Revenue multiple of 7.9x
2019
2019. Assign (SE);
Skookum (US)
PE funds
attracted
2020.ECS
Group (UK);
Meelogic
(DE/PL)
2017 2021
2021. Acquired
by Hitachi
2020
EBITDA
US$ 179.5m
(FY 2020)

33. Vertical expertise:
Pharmaceuticals, financial
services, TMT, Automotive
# of engineers
2,500
(2020)
Delivery geography
Eastern Europe including Poland,
Ukraine, Malaysia
PE / IPO funds
attracted
Acquisitions 2012 2017 2018 2019
2018. CoreValue (UA);
Solid Brain (PL)
2017. Cornerstone Partners and
Oaktree Capital Management acquire
IT Kontrakt
2018 - 2019. A series of
acquisitions and mergers to form a
platform company
2021
2019. IT Kontrakt, Sevenval (DE),
CoreValue (UA) and SolidBrain (PL) join
forces to form Avenga
Formerly IT Kontrakt
2012. WorkService
acquires IT Kontrakt
Revenue
>US$ 125m
(FY 2020)

34. Vertical expertise:
Automotive, Financial Services,
Consumer Services, Industrial,
High Tech, Media &
Communications
# of engineers
~1,600
(2020)
Delivery geography
Poland, Ukraine, Asia,
US, Germany
PE / IPO funds
attracted
Acquisitions 2012 2014 2015 2017 2019
2017. Investment in
FDV Solutions (AR);
iNTENCE (DE)
2014. Acquisition
Kupferwerk (DE)
2014 - 2019. A series of bolt-on
acquisitions. In 2019, acquired by
Mid Europa Partners
2012. Enterprise Investors
Revenue
~US$ 100m
(FY 2020)
2021
2015. Merged with
SMT Software (PL)
2019. Acquired by
Mid Europa
Partners
Revenue growth
11% y-o-y
(Q1 2020)
2021. Ammeon (IRL)

35. AVentures Capital:
M&A advisory in CEE
Software Development Sector

36. • M&A strategy development & implementation
• Sell-side advisory
• Buy-side advisory
Professional, client-tailored
investment banking services:
M&A Advisory for IT Services
companies in Central Eastern
Europe
AVentures Capital: what we do
36

37. What makes us proud
A network of 200+ outsourcing
companies around the globe
Unique vertical focus on IT Services
and outstanding sector experience
US$ 400m+ in completed transactions in CEE
over last few years
AVentures advised on some of the
landmark deals in CEE SoftDev
• M&A team fully focused on Software Development
Outsourcing in the CEE region
• Vast Software Development sector experience
based on both investor and M&A advisor
perspectives
• Trusted advisor for exits and partnerships in CEE tech
sector
• On-the-ground analytical support and unmatched
execution capabilities
• Top-level contacts with the decision makers of
over 100 largest Software Development
companies in 20+ countries on 4 continents
• The advisor of choice for the largest strategic and institutional
investors doing M&A deals in CEE Tech
37

38. Investment banking
38
Investments
Minority investor,
extensively helping with
strategic business tasks
Exited
2015
Buy-side advisor to
Soros Funds on
acquisition of a
minority stake
Ciklum
2018
Buy-side advisor to
a financial investor
on majority stake
acquisition
CoreValue
• Ciklum: global market focus
with 3,500+ developers across
12 delivery centers in Europe
and Asia
• AVentures: buy-side adviser
and BoD member for 4 years
• AVentures fund also coinvested
and exited in 2020
• CoreValue: US market focused
Salesforce consulting with 400+
developers across delivery
centers in Ukraine and Poland
• AVentures: buy-side adviser for
buy out of the majority stake,
minority investor and BoD
member for 3 years
• AVentures fund also coinvested
& exited in 2019
Viseven
• 700+ developers, outsourcing and
product company
• #1 Pharma vertical player from
Ukraine
• Clients – top pharma companies
globally
Exited
2020
Sell-side advisor to
Daxx during the
sale to Grid
Dynamics
Daxx • Daxx: 500+ team across four
delivery centers in Ukraine and
Netherlands with US and EU
clients across industries
• AVentures: sell-side advisor to
shareholders

39. Industry thought leadership
Software Development report: Poland, Romania, Ukraine and Belarus
DealBook of Ukraine: annual overview of tech investments
Recent publications in global media
First-of-a-kind industry
overview. Comprehensively
covers industry metrics, trends
and M&A activity in the region
“Ukraine is already one of the most
competitive IT industry players in the
region and is poised to consolidate
its position further.”
Link to the article
“Ukraine is still the best outsourcing
destination in Eastern Europe”
Link to the article
“In year overshadowed by the
COVID pandemic Ukraine’s dynamic
IT sector has been a rare ray of
sunshine”
Link to the article
“Ukraine's IT Boom Weathers The
Pandemic”
Link to the article
39
Click to access

40. Yevgen Sysoyev
Managing Partner
ys@aventurescapital.com
• Technology advisory and
investments background
• Board Member and investor
in a dozen technology
product and service
companies
• INSEAD MBA with distinction,
Math and Economics degree
Yuliya Sychikova
Director
yuliya@aventurescapital.com
• Tech entrepreneurship and VC
background
• Investment and operation
expertise in IT Service
Industry
• BA degree in Economics from
the University of Pennsylvania
Let`s talk?
40
Tetyana Torchylo
Investment Intern
tetyana.torchylo@aventurescapital
.com
• (cont.) BA degree in Political
Economy from the Duke and
Duke Kunshan Universities