US$40mn agreement adds data company to portfolio.
A private equity firm that backs mid-cap companies in Ukraine and Belarus has completed its third deal in as many months after it agreed to support a data network and telecom services business.
Horizon Capital is to invest up to US$40mn in Ukrainian company Datagroup, funded from its US$390mn second Emerging Europe fund. This deal follows its recent investments in Bostavan Wineries and agricultural group Agro-Soyuz.
Datagroup’s management, led by chief executive Alexander Danchenko, will continue to run the business. Danchenko says this investment will be directed into developing its profitable services such as broadband and data transfer, which will “strengthen us further”.
Horizon’s funding was arranged by co-managing partner Natalie Jaresko, who adds that the company’s growth is due to the strength of its management and that the firm will provide strategic guidance to build on their success.
In the next two years Horizon and Danchenko’s team will work to secure additional funding of up to US$100mn for the company.
Alexander Kardakov, Datagroup’s founder, says the arrangement with Horizon is more of a strategic partnership than merely a portfolio investment and the funds will be used to boost its corporate and retail offerings.
Horizon Capital currently has more than US$600mn under management and has two additional funds, Emerging Europe Growth Fund and Western NIS Enterprise Fund.
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