Swedish-Ukrainian IT company Sigma Software Group has announced a new acquisition: the company is taking over A Society Group, a U.S. consulting firm operating in the IT and engineering sectors.
- The financial terms of the deal have not been disclosed.
- It is only known that Sigma Software is acquiring only the U.S. division of A Society. The Swedish team, where the business originally started, remains independent and is not part of the transaction.
- The European office will continue to focus on its local clients.
- For Sigma Software Group, the acquisition of a local U.S. player will help strengthen its presence in the American market and boost its position with both current and potential customers.
- A Society already works with clients in the automotive, defense, and manufacturing industries, which opens up new opportunities for Sigma Software.
Sigma Software has had a U.S. office since 2014. «Changing geopolitical dynamics and the need for business resilience are driving companies to seek technology partners who are physically present and deeply integrated into their operations. This acquisition positions us as a stable partner in these changing times,» said Valeriy Krasovsky, CEO and co-founder of Sigma Software Group. According to the latest DOU rating, the company employs more than 1,800 people in Ukraine.
What’s the value of the deal?
A Society’s U.S. division is a relatively small company with several dozen employees. In comparison, the European division is about five times larger, employing over 100 people across seven offices. The U.S. business has just two offices.
According to Scroll.media’s estimates based on revenue and EBITDA, the deal could be worth slightly more than $5 million.
This relatively high multiplier, compared to Ukrainian valuations, is due to the size of the U.S. market, A Society’s long-standing presence there, and its revenue figures.
However, one of Scroll.media’s sources in the M&A market believes the actual value might be lower, citing the weak financial performance of the U.S. office — one of the reasons the Swedish headquarters wanted to exit the local market.
