Greece-based European Dynamics, an information technologies service provider and software developer, has secured a minority investment. The deal is expected to be completed by summer 2025. Terms of the transaction were not disclosed.
The investment was led by French private investment platform CAPZA through its Flex Equity Mid-Market 2 fund. US-based Abry Partners also participated through its Senior Equity Fund, ASE VI, LP.
‘Modernising the government sector internationally’
Founded in 1994, European Dynamics is an international group of companies providing IT services and software to governments and international institutions. The group designs, develops, operates, and supports IT systems, and offers software products for e-government using advanced technologies.
European Dynamics has offices in multiple cities, including Athens, Berlin, Brussels, London, and Vienna. Its activities include custom IT project delivery, IT consulting, software product development and support, SaaS, cloud, and managed services.
The company focuses on areas such as procurement, contract management, collaboration tools, customs, taxation, intellectual property, legislation publication, pharmaceuticals, meteorology, finance, defence, law enforcement, and IT security.
With around 1,200 employees across seven international subsidiaries, European Dynamics serves about 100 clients in over 30 countries. The company has a technology centre in Greece and plans to expand into France, the Nordics, DACH, and the US.
Capital utilisation
This is European Dynamics’ first time bringing in financial investors since it was established in 1993. With this investment, the company will carry out its growth plans. Its founder and CEO, Constantinos Velentzas, will continue to lead the business and remain the majority shareholder.
European Dynamics claims to have grown through increased demand from institutions and government bodies for IT solutions that support operations and meet regulations.
The partnership with the investors will help the company expand in Europe and other regions, develop new products, and pursue mergers and acquisitions.
Constantinos Velentzas, European Dynamics’ founder, says, “We are thrilled that CAPZA and Abry are investing in ED (European Dynamics) as minority partners, which proves the embedded value of our company. This partnership reflects a shared conviction in our strategic model as well as the common ambition of a leadership position in the critical and ever-evolving landscape of the eGovernment sector.”
“Today’s announcement is also a testament to the hard work of everyone at European Dynamics, our three decades of organic growth and the opportunity that lies ahead. With the investors, we can grow our organic offerings, accelerate our international expansion plans and further develop our ability to innovate, bringing our services and products to more clients around the world.”
European Dynamics is also planning to hire 800 technology experts, mainly in Greece, and is establishing partnerships with universities in Europe and the US.
What do the investors have to say?
Jess Wizman, Partner Flex Equity Mid-Market at CAPZA, says, “We are proud to partner with European Dynamics, a market leader in digital transformation for Governments, European and International Institutions. CAPZA has a strong track-record in supporting high-growth software and IT services companies, and we were particularly impressed by European Dynamics’ deep domain expertise, mission-critical solutions, and international reach.”
“We are excited to support Constantinos Velentzas and the management team in European Dynamics’ next growth chapter, notably in key markets like France and in strategic sectors including Defense.”
Founded in 2004, CAPZA has €9.1B in AUM and is part of AXA Investment Managers Alts, which manages over €186B. The firm invests through its Flex Equity Mid-Market 2 fund, with investments of up to €150M. CAPZA Group has over 115 employees based in Paris, Munich, Madrid, Milan and Amsterdam.
Tyler Wick, Co-Head of Abry Senior Equity Fund at Abry Partners, adds, “Constantinos and the European Dynamics management team have built a world-class software and digital transformation platform dedicated to providing complex and mission-critical solutions to the public sector.”
“We have extensive experience partnering with government technology companies in North America and Europe and we believe that European Dynamics is well positioned to expand its global leadership position.”
“Abry is thrilled to partner with the company and support the management team in this next phase of growth, including expansion into North America and into rapidly growing categories such as artificial intelligence.”
Abry Partners is a North American private equity firm that focuses on specific sectors. Since 1989, it has completed more than $90B in leveraged transactions and equity investments. The firm currently manages $17B across various fund strategies.
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