George Soros first invested in the Ukrainian IT market

    The George Soros Development Fund of Ukraine (The Ukrainian Redevelopment Fund LP) has acquired a stake in the Danish company Ciklum . Ciklum provides outsourcing services. Ukraine has its largest development office. It is known that the fund acquired less than half of the shares. He bought back a stake belonging to Horizon Capital (it ranged from 10% to 25%), and also part of the stake owned by Majgaard Holdings Ltd, a company of Torben Maygaard, the founder of Ciklum. This transaction is expected to be completed by the end of 2015.

    “This is a very dynamic company in the industry, which represents the future of Ukraine. It is also an investment in what I call the “new Ukraine” - a country of young, well-educated Ukrainians who are eager to say goodbye to the past and build an open society. I hope this deal will set an example for other investors, ”said George Soros, commenting on the deal.

    The transaction was moderated by the well-known Ukrainian investment fund AVentures Capital . Thanks to his partners, the George Soros investment team got acquainted with the Ukrainian IT industry, with its representatives and products, including Ciklum.

    According to Andrey Kolodyuk, partner of AVentures, his role in the negotiations was to ensure that the management of Ciklum, representatives of the Soros Foundation and Horizon Capital did not just get to know each other, but also agree on favorable conditions for cooperation. After that, Andrei was invited to join the Ciklum Board of Directors.

    The fund will become a strategic partner for Ciklum, says Kolodyuk. With such financial support, the company will be able to open new offices around the world, including the United States. And in the end - perhaps it will be released at an IPO in New York.

    “The Soros Fund has over 40 transactions worldwide. This is not only the first investment in Ukraine, but also the first in the field of IT services (outsourcing). For all IT, the arrival of a new investor in the market is very important, especially such a large one. This is a signal for all world leading investors that it is possible and necessary to invest in Ukraine. We have companies, ideas, and talents - we don’t need to be afraid to enter the country, make deals, ” Kolodyuk told

    Cyclum founder Torben Maygaard previously participated in joint transactions with AVentures: last April they participated in a new round of investment in the Ukrainian company Coppertino, as well as in a deal with Augmented Pixels.

    Ciklum is an international company engaged in software development and outsourcing of IT services. The company was founded in 2002 by the Dane Torben Maygaard (also is the chief executive officer of the company - IF) in Kiev. It has offices in Ukraine, the UK, Switzerland, Denmark, Belarus and Pakistan.

    Ciklum is one of the largest outsourcers of Ukraine. According to DOU data in August, about 2,300 people worked in the Ukrainian offices of the company.

    In 2012, Ciklum received an investment from Horizon Capital - now this share has passed to the new owners. This year, Horizon made another high-profile deal - it invested in the Rosette outlet, the largest online store.

    The Development Fund of Ukraine is a private investment fund that focuses on special situations and private investments in Ukraine, as well as companies with significant transaction volumes in Ukraine. The main investment adviser to the Development Fund of Ukraine is Soros Fund Management LLC, a private investment adviser of several private investment funds that work exclusively for clients of the Soros family.

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