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Software Mind from Ailleron Group has acquired 100% of the shares in technology company Prosoft LLC. based in Louisville, Kentucky, USA. Prosoft LLC. owns the number8 brand, under which it has been developing software to increase process efficiency and accelerate time-to-market for more than two decades. The acquired entity employs 330 high-level IT experts, operates in the North and South American markets, and provides services to companies in the medical, retail, fintech, or tech services industries. The acquisition of Prosoft LLC. (number8) increases Software Mind’s revenue share from the US market to nearly 50%, providing the Ailleron Group with a leap in business growth and opportunities for further dynamic development, particularly in the Americas market. The value of the stake acquisition was approximately $40.6 million. The transaction was financed with Software Mind’s funds and an investment bank loan from BNP Paribas.
In accordance with previous announcements regarding a potential acquisition, Software Mind has announced the acquisition of another entity. This time, the Group is joined by the established American company Prosoft LLC – owner of the brand number8 – under which it conducts business operations. The goal of the completed acquisition is to strengthen Software Mind’s position in the US market.
number8 has been engaged in software development for more than twenty years, providing consulting services and top-notch, carefully selected IT professionals to clients. The company has a proven track record of increasing productivity and accelerating time-to-market with Agile methodologies. “number8” works with a wide variety of clients, including technology start-ups, Fortune 100 companies and multinational corporations. number8 is headquartered in Louisville, Kentucky, in the United States, and also has offices in Costa Rica and Honduras. Prosoft employs 330 high-level IT professionals.
For both entities, the acquisition creates new opportunities for diversification and growth.
The acquisition of number8 is part of Software Mind’s consistently pursued dynamic growth strategy both organically and through investment. The main objective of the current acquisition is to strengthen the company’s position in the US market. At Software Mind, we are very impressed by the range of skills, broad experience and knowledge of number8 specialists. Including them in our global team further diversifies the Group’s offer by expanding it not only from the point of view of our nearshoring offer, but also from the point of view of providing local support for clients in the Americas. In addition to strengthening our global team, this acquisition increases Software Mind’s revenue share from the US market to nearly 50%, which also translates into a leap in Ailleron Group’s business.
Becoming a part of a global software development company enables us to share our knowledge and experience with new markets and industries. Software Mind’s domain knowledge with emerging technologies provides great opportunities for internal development and external support. The evolution in capability Software Mind enables, both extends and enriches the vision David Easterling had when he founded number8 and which I’ve sought to continue. We’re excited to offer our clients access to Software Mind’s comprehensive offer, while enhancing Software Mind’s ability to work side by side with organizations in the US.
The acquisition by Software Mind is in line with Software Mind’s stated path of growth and business diversification. With the addition of 330 experts from number8, the Group is increasing its pool of nearshore and onshore talent and will be able to more effectively provide support to North American clients.
We are thrilled to announce that we have reached another milestone in the history of Software Mind as well as the entire Ailleron Group. The acquisition of number8 will provide growth of unprecedented scale. I am optimistic, seeing how our Group is growing and strengthening. The acquisition is an opportunity for us to diversify our business and strengthen our competence in existing areas and markets. With this step, we are expanding our capabilities and increasing the value we deliver to our customers and business partners. It is my deep belief that our involvement will bring both Software Mind and number8 many benefits. Together, we will achieve even greater success.
According to the agreement that Software Mind paid for the shares, the price was approximately $40.6 million. It may be increased due to a conditional earn-out payable by Software Mind. The occurrence and amount depend on Prosoft LLC’s financial results for 2024, except that it may not exceed $8.5 million.
Bank BNP Paribas has granted Software Mind an investment loan of PLN 150 million. The acquisition of number8 was financed in part with Software Mind’s funds and in part with a loan granted by the bank, the remainder of which will be used for the further operational and strategic development of the Software Mind Group.
Software Mind, together with its subsidiaries, is responsible for the Technology Services segment in the Ailleron Group. Software Mind provides software development services to innovative companies in Western Europe and North America (including Silicon Valley). Software Mind is developed jointly by Ailleron Group listed on the Warsaw Stock Exchange, and Enterprise Investors, one of the largest private equity funds in Central and Eastern Europe.
Ailleron SA is a capital group listed on the Warsaw Stock Exchange. Its subsidiary Software Mind provides software development services for innovative companies from Western Europe and the United States (including from Silicon Valley) and – under the Amplitiv brand – for the telecommunications industry. Software Mind is developed jointly with Enterprise Investors – one of the largest private equity funds in Central and Eastern Europe. Ailleron focuses on comprehensive software development services for banks, leasing companies, fintechs and other financial industries, mainly in Europe and Southeast Asia. It creates innovative IT solutions based on cloud technology and artificial intelligence. Ailleron’s clients include Citibank, ING, Santander, BNP Paribas, Standard Chartered and Credit Agricole. With a global reach spanning over 40 countries, Ailleron Group serves more than 200 clients and employs a robust team of over 1,500 specialists. International markets contribute to a remarkable 75% of the group’s revenue, showcasing its truly global impact.
