VTB Capital Private Equity and Special Situations (PESS) has successfully placed part of its minority stake in the leading CIS offshore software developer EPAM Systems, Inc during its IPO at NYSE (ticker “EPAM”). EPAM offered of 6,000,000 shares of common stock at a price of $12.00 per share. Last Russian company to go public on NYSE was Mechel in 2004.
The minority stake in EPAM was acquired by VTB Capital PESS in May 2010. The fund “Russia Partners” is among other shareholders.
The IPO allows VTB Capital PESS to realize substantial IRR on its investment and is already the second successful exit after “Lesnaya Plaza” in last 3 months.
Commenting on the deal, Tim Demchenko, Head of Private Equity and Special Situations at VTB Capital, stated: “IPO of EPAM is a great story for the Company and VTB Capital. The proceeds and access to capital markets will continue to fuel EPAM’s growth and international expansion”.
Established in 1993, EPAM Systems, Inc. is a leading global IT services provider with delivery centers throughout Central and Eastern Europe. Headquartered in the United States, EPAM employs over 7,000 IT professionals and provides services to clients worldwide using a global delivery model through its client management and delivery operations in the United States, Belarus, Hungary, Russia, Ukraine, UK, Germany, Kazakhstan, Sweden, Switzerland and Poland. Company’s revenue has grown by 58% in 9M of 2011 vs. 9M 2010 and reached US$ 239mn while adjusted net income increased by 81% from US$ 20 million to US$ 36 million during the same period.
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