Private equity eyes booming Russia IT market

Russia's booming information technology (IT) market is a key target for private equity firms across the globe, according to a private equity lawyer with global law firm Squire, Sanders & Dempsey L.L.P. The firm represented Scandinavian private equity fund Mint Capital in its investment into the Verysell Group, one of Russia's leading IT companies. The Verysell deal closed 29 March.

Christopher A. Rose, a Squire Sanders private equity lawyer based in London and Moscow, said the Mint Capital deal is an example of growing global interest in Russian IT as that country looks to high-technology to diversify its economy. Rose, who is co-author of the Russian Federation chapter of the PLC Cross-border Private Equity Handbook 2006-2007, was part of the Squire Sanders team on this transaction.

Other Squire Sanders attorneys participating in the Mint Capital deal were corporate lawyers David Wack and Anna Manyatkina in the firm's Moscow office and corporate lawyer Andrew Sandor in the firm's Bratislava office.

"Russia is reported to have the fastest growing IT market in the world, with projections that its USD14 million IT market will grow by 20 percent annually," Rose said. "The Russian government has particular interest in IT as it seeks to diversify the economy. These factors make IT a key investment for private equity, and we are pleased to assist our client in this important transaction."

Mint Capital is a minority investor in Verysell, which will use the capital for ongoing business development. The investment amount was not disclosed.

Founded in 1890, Squire, Sanders & Dempsey L.L.P. has approximately 800 lawyers in 30 offices and 14 countries around the world. With one of the strongest integrated global platforms and a longstanding one-firm philosophy, Squire Sanders provides legal counsel worldwide.

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