The funding for this deal comes from Horizon Capital’s Emerging Europe Growth Fund II (EEGF II), which was raised in 2008. The financial details of the transaction have not been disclosed.
Ukraine’s IT outsourcing market has been demonstrating impressive cumulative average growth rates of 28% per annum during 2004-2011 and is forecasted to enjoy 20-25% growth rates per annum during 2012-2016 based on the continued cost advantage of highly skilled Ukrainian programmers.
Of Danish origin with the Head Office in Ukraine, Ciklum is an IT company with a unique business strategy. Ciklum establishes dedicated IT development teams to enable clients to work directly with developers to reach the highest level of productivity. With the development offices in Ukraine, Belarus, and Pakistan, Ciklum delivers a vast portfolio of outsourcing services that is designed especially for the client. While the client focuses on managing the process of software development, Ciklum takes care of all operational issues, including human resources management, IT infrastructure, and administrative and legal support. Ciklum even offers its clients help in selling their software product and/or services in the CIS region.
Torben Majgaard, Ciklum founder and CEO said: “We are proud of our achievements over the past 10 years. The company has demonstrated excellent performance and growth. Horizon Capital has a strong understanding of our business and shares our vision and values which makes it the right partner for us in Ukraine. Our mutual priority will be to grow further as this is integral to our success. We look forward to leveraging Horizon Capital’s understanding of the Ukrainian environment as well as global trends and best practices to continue to innovate and grow the business.”
Denis Tafintsev, Partner of Horizon Capital, commented on the deal: “Ciklum’s visionary founder together with its talented management team has developed an excellent company, and already secured a strong position in this sector, growing faster than the market. Ciklum’s model of dedicated teams puts the clients’ interest first, which creates long-term mutually beneficial partnerships with the clients. We are very excited to be investing in the business and look forward to working with Ciklum as it executes its ongoing growth strategy.”