Overview:
On 31 August 2021, Ciklum announced that it will acquire CN Group, a Czech-based software development company from Genesis Capital.
Through this acquisition, Ciklum enhances its presence in Central and Eastern Europe (CEE) as well as the DACH countries. CN Group adds 5 Central Europe-based nearshore delivery locations to Ciklum, which will help in supporting the company’s European and North American clients.
Financial details of the transaction were not disclosed.
About Ciklum:
Founded in 2002, Ciklum is a global product engineering and digital services company backed by Recognize Partners with over 1,200 enterprise clients worldwide.
It offers solutions and services for data & analytics, digital commerce, intelligent automation, cybersecurity, application development, DevOps, DevSecOps, quality engineering & testing and managed services.
In Dec 2020, Ciklum received a significant strategic investment from Recognize Partners to expand its service offerings and fuel global expansion.
Based in London, UK, Ciklum has over 3,500 employees in 20 offices worldwide.
About CN Group:
Founded in 1994, CN Group is a software development company backed by Genesis Capital, a leading CEE-based private equity fund.
It provides software engineering, IT consulting and mechanical design engineering services to 62 international customers which include Procter & Gamble, Strabag, TF Bank, Bunte.de and FlatexDEGIRO.
Based in Prague, Czech Republic, CN Group employs 360 people and has 5 delivery centers across Central Europe.
Rationale of the transaction:
The acquisition of CN Group is aligned with Ciklum’s strategy to enhance service offerings inorganically and emerge as a leading digital transformation company in the CEE region.
CN Group adds 360 people with strong digital and mechanical engineering expertise across diverse sectors to Ciklum’s workforce.
It will create a strong delivery footprint of over 3,200 personnel spread across Ukraine, Czech Republic, Slovakia, Poland and Romania.
This is Ciklum’s first acquisition after receiving the strategic investment from Recognize Partners. Ciklum aims to pursue similar acquisitions to enhance its technology services portfolio and expand geographically beyond the core European market.
The Chesapeake Group was not an advisor in this transaction.