Livonia Partners will invest in Digital Mind AS, a business process digitalization specialist for large and mid-sized organizations in the Baltic states, to facilitate the acquisition of 100% shares of EIP Dynamics Sp. z o.o, a prominent Microsoft Enterprise Resource Planning (ERP) solution provider in Poland serving some of the largest companies in the country and internationally.
The acquisition will allow Digital Mind to create a strong regional Microsoft Business Applications champion serving clients in the Baltic and Central European countries and it will position the Company as a scalable platform to execute further business acquisitions in the CEE region. The acquisition is aimed at significantly enhancing Company’s delivery capabilities and enabling cross-border teams to serve large local and international clients with complex digitization needs. Group’s forecasted consolidated revenue for 2023 is 24 million euros and the team will exceed 300 professionals.
“The acquisition of EIP Dynamics, coupled with the strategic investment by Livonia Partners, marks a historic milestone for Digital Mind. This momentous event underscores our unwavering commitment to elevating our capabilities and delivering state-of-the-art business application solutions to our esteemed clients. As we embark on this transformative journey, our aim is to solidify our position as a prominent Microsoft Dynamics specialist in the Central and Eastern European (CEE) region. We are truly inspired by the exceptional competence and entrepreneurial spirit of the EIP Dynamics team. Their expertise aligns seamlessly with our vision for sustained growth and innovation. We eagerly anticipate the synergies and advancements that this strategic move will foster for both companies’ teams, clients, and stakeholders.” Rinalds Sluckis, CEO of Digital Mind.
Ernests Bordans, partner at Livonia Partners added: "We are very pleased to support Digital Mind's management in this transaction, and I know that this is just the beginning of their international ambitions. The demand for modern ERP system integration is growing rapidly, and after this acquisition more than half of Digital Mind sales will be generated from customers outside the Baltics. The Company differentiates itself with specific industry expertise, which has ensured very high customer loyalty."
The transaction is pending Competition Council approval and is anticipated to conclude in the beginning of 2024.
About Digital Mind:
Since its establishment in 2005, Digital Mind has been at the forefront of delivering tailored business application solutions to both large and mid-sized organizations across various sectors, including finance, insurance, logistics, retail, telecommunications, manufacturing, construction, public sector, and other domains. Its core expertise lies in providing comprehensive services related to implementation and management of Enterprise Resource Planning (ERP), Enterprise Content Management (ECM), Intelligent Process Automation (RPA cloud business applications. With offices located in Riga, Vilnius, Warsaw, and Tallinn, the company currently serves a diverse clientele of over 350 organizations in the region. In Lithuanian and Polish markets, company operates under Alna Business brand.
About EIP Dynamics:
EIP Dynamics, a leading force in the realm of Microsoft Dynamics technology solutions, has consistently demonstrated a commitment to innovation and excellence since its inception. Specializing in tailored, industry-specific implementations, the company has amassed a portfolio featuring dozens of successful projects utilizing Microsoft Dynamics 365 Business Central and a multitude of installations of Microsoft Dynamics NAV. EIP Dynamics, an international entity with a global footprint, serves clients across Europe, the United States, and Canada. With a workforce exceeding 120 professionals, the company's dedication to client satisfaction and technical expertise positions it as a key player in the region.
About Livonia Partners:
Livonia Partners is a pan-Baltic private equity investment firm. Currently investing from EUR 157 million Fund II, Livonia team works across Estonia, Latvia, and Lithuania. Other recent investments include Stebby (the largest pan-Baltic employee wellness benefit platform), Bagfactory (a leading manufacturer of reusable non-woven carrier bags in Europe), and Bestair (heat pump and green home climate solutions provider). Fund investors are Baltic and Nordic pension funds, including Swedbank, the European Bank for Reconstruction and Development, the European Investment Fund (EIF) investing through the Baltic Innovation Fund 2 (an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, and the EIF) and others.