Sri Lankan IT firm draws US$ 20 million investment from private Scandinavian equity firm
Sri Lanka’s 99x, which is an innovative technology solutions firm, has received a US$ 20 million investment from Herkules Deal-by-Deal, a Scandinavian private equity company. The investment is part of its capital restructuring programme as well as for the next phase of the company’s planned growth.
In line with the investment, a holding company in Europe is to be set up and funds for future acquisitions as well as cash remuneration for part of the shares held by the current shareholders.
Operational for a period of 15 years, 99x has said the new investment paves the way for the company to establish a direct presence in Europe and an acquisition-based growth trajectory, enabling the company to broaden its digital service offerings.
Last year, 99x had engaged the services of Capital Alliance (CAL) in Sri Lanka to prepare the necessary collateral to reach out to potential investors.
99x Founder and CEO Mano Sekaram has been quoted as saying in the local media, “We began this journey to seek investments to establish a direct presence in the Scandinavian region and position ourselves for an acquisition led growth strategy. This is a significant milestone for our employees and for the Sri Lankan IT industry. We can take pride in a Sri Lankan company being able to win the confidence and trust of such investors and bring foreign investment into the country.”
“99x’s high customer satisfaction, strong financial performance and the competence of its people was a key attraction for us to invest in 99x’s next phase of growth. We were impressed by the competency of the 99x management team and what they have been able to achieve. We believe the tech investors we have brought together accurately reflect the high quality and substantial growth potential of 99x,” Herkules Partner Fredrik Bysveen has added.
OSL take:
Sri Lanka’s ICT and digital infrastructure development sectors are fast evolving, opening up many business/investment opportunities. With the country fast emerging as a business destination in the South Asian region, the government of Sri Lanka is committed to developing and uplifting the ICT and digital infrastructure development sectors. Authorities are also in the process of transforming the country into an e-economy as well. Local companies are also geared to meet the growing demand in these sectors. Foreign businesses/investors while exploring opportunities in the ICT and digital infrastructure development sectors, could also look at forming partnerships and joint ventures with local businesses.
| Article Code : | VBS/AT/18082021/Z_11 |