December 19, 2023
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KKCG Reaches Agreement to Acquire Global Technology Platform Avenga from Oaktree and Cornerstone

KKCG, a leading European investment and innovation group announces its agreement to acquire Avenga, an end-to-end software engineering and consulting platform from funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and funds managed by Cornerstone Investment Management, L.P. (“Cornerstone”). This investment is a key step in the strategic development of KKCG’s technology pillar.

Headquartered in Germany, and with offices in 31 locations, Avenga transforms its clients’ operations with next-gen technology solutions to position them at the forefront of the digital era. The company is focused on digital transformation and custom software development and employs over 3,800 highly skilled professionals with a significant global delivery footprint. The acquisition of Avenga marks an important milestone in KKCG’s growth story.

Avenga enables KKCG to strengthen its presence in target markets in Europe and North America, contributing strong capabilities especially in healthcare & pharma, while complementing the strong footprint of KKCG’s portfolio company Qinshift in custom software development for telecoms, banking and financial services, and the automotive industry. By combining Qinshift’s custom software development platform and workforce with Avenga’s resources, KKCG will create one of Europe’s leading digital transformation architects, with nearly 7,000 professionals, uniquely positioned to service a large international client base. Clients can anticipate an expanded range of innovative solutions and a more comprehensive suite of services, tailored to meet their specific needs across diverse industries. Both companies also share a culture ingrained in buy-and-build platforms, cultivating an environment of growth, integrations, and the pursuit of further acquisitions.

Michal Tománek, Investment Director at KKCG,said:“Today marks a significant stride in our journey to grow KKCG’s IT pillar into a global tech and consultancy platform. The acquisition of Avenga as a highly complementary asset to our existing Qinshift portfolio company will enable us to effectively double our presence in the custom software development space, while tapping into deep pools of IT talent in Poland, Ukraine, and Argentina. This, coupled with enhancing our expertise in critical sectors such as healthcare & pharma, significantly expands our capabilities to better serve more clients around the world.”

Ludovic Gaudé, Head of KKCG’s software engineering activities and CEO of Qinshift, said: “Avenga is a successful company with a strong, proven track record, highly skilled engineering and management teams and excellent clients. This investment gives us at KKCG the opportunity to extend Qinshift’s service offerings, and devote more resources in the development of new technologies. We see tremendous potential for the digital engineering industry and look forward to working with the exceptional team at Avenga to take advantage of opportunities and synergies. This moment is also a testament to both companies shared entrepreneurial culture of fast growth, setting the stage for a dynamic future.”

The deal is for the sale of a 100% share in the company, subject to customary closing conditions. Ludovic Gaudé will lead the process of future integration.

Yuriy Adamchuk, CEO of Avenga, said: “Joining forces with KKCG, a leading European investment and innovation group, marks a new chapter in Avenga’s journey. This strategic acquisition not only validates our strong track record but also opens exciting opportunities for collaboration, allowing us to further innovate and expand our next-gen technology solutions in key sectors. We are enthusiastic about the potential of this partnership and the collective strengths we bring to the global tech and consultancy landscape.”

Karim Khairallah, Managing Director and Co-Portfolio Manager of the European Principal Group at Oaktree, said: “Avenga has established itself as a prominent international player within the growing IT and digital transformation market since our initial investment. We are proud of our partnership with management and Cornerstone to support Avenga’s impressive organic and M&A-led growth trajectory, which has seen the business develop into a strong global competitor. Over the same period, Avenga has established a reputation for quality expertise, a client-centric focus and as a home for developing talent. KKCG will be a great new partner for Avenga’s next stage of growth and we wish all the best to the Avenga management team and employees.”

Przemysław Krych, Founder of Cornerstone, said: “Since our partnership with Oaktree and inception of Avenga in 2017, we’ve held an unwavering belief in the potential of the company’s success. Avenga, from the very beginning, has been strategically steering towards new horizons in the ever-evolving landscape of the IT industry, and becoming a key player in delivering future-focused innovations. This strategic transition reaffirms our dedication to leading technological advancements in the IT sector. KKCG has the possibility to chart a new future for Avenga, brimming with innovation, adaptability, and unparalleled technological advancements.”

Oaktree and Cornerstone were advised by Citigroup Global Markets Europe AG (“Citi”) acting as exclusive financial adviser.

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KKCG Reaches Agreement to Acquire Global Technology Platform Avenga from Oaktree and Cornerstone

KKCG, a leading European investment and innovation group announces its agreement to acquire Avenga, an end-to-end software engineering and consulting platform from funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and funds managed by Cornerstone Investment Management, L.P. (“Cornerstone”). This investment is a key step in the strategic development of KKCG’s technology pillar. Headquartered in […]

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