Vekselberg Eyes IT Business


MOSCOW. Renova Capital, set up by Viktor Vekselberg's Renova holding, has set its eyes on the IT business. It has decided to invest in the acquisition of a controlling stake in Promt, a leading developer of machine translation products and services, including @promt automated translation software.

Renova Capital is a leading Russian private equity fund investing in fast-growing midmarket companies with significant market share.

Earlier Stage Alternative Fund, a direct investment fund managed by Renova Capital, is buying more than 50% of Promt and will increase its stake with each new investment.

The value of the deal has not been disclosed, but analysts say Renova Capital, which usually invests $30-$50mn per project on average, will pay less for the stake in the IT company.Last year, Promt’s revenue was approximately $10mn, up 80% year-on-year, and Renova Capital will most likely pay as much for the stake.

The company holds approximately 10% of the global market of machine translation products, which is highly attractive and may grow exponentially in the next three or four years, according to experts.