INVL Technology-owned Novian to acquire Algoritmu Sistemos and Andmevara

The special closed-ended private equity investment company INVL Technology is consolidating the businesses it owns. INVL Technology’s Investment committee on 29 October 2019 adopted a decision to authorise the combination of IT services and software businesses into the Novian group.

For that purpose, internal acquisitions of companies will be conducted within the group: Novian UAB will acquire the company Algoritmu Sistemos UAB, Algoritmu Sistemos UAB will acquire the Estonian company Andmevara AS from INVL Technology, and BAIP UAB, which is owned by Novian UAB, will acquire the Estonian company Andmevara Services OU along with Andmevara SRL.

The transactions will be conducted in accordance with the companies’ value at 30 September 2019. Completion of the group’s internal business acquisitions is planned by the start of 2020.

“We aim to create larger entities that will be able to offer clients a bigger range of services and will be more attractive to potential employees and investors,” said INVL Technology’s managing partner, Kazimieras Tonkūnas.

On completion of the transactions, the Novian group will include BAIP UAB, Acena UAB and Algoritmu Sistemos, which operate in Lithuania, Estonia’s Andmevara AS and Andmevara Services OU, Moldova’s Andmevara SRL, and Norway’s Zissor AS.

 Additional information:

The IT services and software businesses owned by INVL Technology, a company that invests in IT businesses, will be combined into the Novian group. For that purpose, internal business acquisitions within the group are planned, with the legal reorganisation to be completed by the start of 2020. INVL Technology’s investment committee made the decision allowing the combination of businesses into the Novian group on 29 October.

“In creating this group, we aim to address clients’ need to implement complex projects. After the reorganisation, the Novian group’s companies will continue to provide their services and attend to existing clients, and those clients will be able to get more services from a single source,” said Kazimieras Tonkūnas, INVL Technology’s managing partner.

When the reorganisation is complete, the Novian IT services and software group will operate in two areas in the Baltic countries – IT infrastructure and software development, while the company Zissor, which it owns, will continue and further develop its regular operations while also contributing to the group’s expansion and offering combined group-company services in Norway and other Nordic countries.

The providers of IT infrastructure services will join forces in the Baltics. Clients of BAIP and Acena in Lithuania will gain access to the SaaS (software as a service), website hosting and historical-document digitisation services offered by Andmevara Services OU and Andmevara SRL.

Meanwhile, Andmevara Services OU’s portfolio of services in Estonia will be strengthened with BAIPs’ and Acena’s solutions for supercomputing, critical IT infrastructure and resilience, IT resource optimisation, business analytics and process automation, also gaining the ability to offer uninterrupted customer service.

The software companies Algoritmu Sistemos and Andmevara AS will also work together and exchange know-how on tax administration, machine learning, waste management, e-health, e-democracy, smart city, education, regulation and other areas. Their clients will have access to the competencies and solutions of all the group’s businesses.

According to Tonkūnas, the reorganisation of group companies will also make it possible to offer clients comprehensive digital transformation projects like the transformation of IT systems into new-generation technologies or the practical application of high-performance computing, artificial intelligence and Internet of Things technologies and systems in organizations.

“We believe the reorganisation of the Novian group will make it possible to meet new client needs and strengthen our clients’ competitiveness as well as the group’s positions in the Baltic and Nordic markets, thereby increasing the value of the group’s businesses,” Tonkūnas said.

Completion of the Novian group’s reorganization will put fully in place the structure of three business directions that INVL Technology has been forming since the start of 2018: IT services and software, business climate improvement and e-governance, and cybersecurity.

In July 2016, INVL Technology began to operate as a closed-end investment company. Its management was assumed by INVL Asset Management – a part of Invalda INVL, one of the leading asset management groups in the Baltics. INVL Technology will operate as a closed-end investment company until 14 July 2026.

The person authorized to provide additional information:

Kazimieras Tonkūnas

INVL Technology Managing Partner

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