Baring Vostok, a leading private equity fund operating in Russia and the CIS, has acquired a 9% stake in 1C, a top Russian publisher of enterprise software and distributor for major international software vendors.
The news, initially announced by a 1C representative at an industry event on Saturday, was confirmed yesterday by Russian business daily Vedomosti. The amount of the deal has not been disclosed, but Baring Vostok’s stake could be valued at as much as $200 million, reported Vedomosti. The calculation is based on 1C’s 2010 turnover of $608 million with an at least 20% annual growth.
A separate entity will be created to serves as a vehicle for the assets of 1C – with the exception of those assets related to licensing activities and classified state activities – with the Barking Vostok owning 9% and 1C 91% of this new company.
Baring Vostok Capital Partners has been operating in various industries since 1994, investing over $1.5 billion in more than 55 companies. Among them have been Yandex, the Russian search giant which went public on the NASDAQ in May, and Ozon.ru, the top e-commerce site which raised $100 million last month. The fund claims it currently has more than $2.2 billion in committed capital for new investment.
