MartinsonTrigon Invests 2 Million Dollars into a Russian Software House

MartinsonTrigon, a Nordic venture capitalist company, has invested 2 million dollars into Reksoft, one of the leading and oldest Russian software development companies. The 260-strong company plans to maintain the 50 percent annual growth rate and secure its position among the Top 3 Russian software outsourcing houses.

Reksoft, founded in 1991, is one of the leading offshore software development companies in Russia. It derives around 65 percent of its revenue from European and North American clients, such as Alcatel, Ascom, Comverse, First Hop, Philip Morris, SoftBrands, Swisscom Mobile, and UPM Kymmene. The company offers a full range of software engineering, development and maintenance services, including deployment of dedicated development centers. Reksoft has shown about 60 percent annual growth rate over the past two years and expects to reach the sales volume of more than 8 million USD in 2005. The group is headquartered in St Petersburg and has offices in Moscow, Russia and Stockholm, Sweden.

The investment will be used with the purpose to secure the growth strategies of Reksoft. Commenting on this announcement, Alexander Egorov, Reksoft CEO and Co-Founder, said, "We are honoured to welcome MartinsonTrigon as our investment partner and are excited about the opportunities of our future cooperation. This partnership will help us maintain the fast growth and extend operations in the target markets. Since cases of international portfolio investment are still rare in the Russian IT market, we believe that this investment will not only make Reksoft more credible in the eyes of prospective customers but it will also enhance the status of Russian IT providers in general".

Reksoft has an unparalleled for a Russian offshore software development company experience of taking standard software products from a client's business idea to complete success on the international market, such as Medallion (800+ installations worldwide), and Barsum (3000+ installations). Reksoft has also gained an invaluable experience in venture projects being the only Russian company to successfully spin off high-tech Internet ventures such as the largest Russian online bookstore Ozon.ru and the leading Internet payment gateway Assist.ru.

MartinsonTrigon, an Estonian-registered venture capital fund, is targeting high-growth IT, technology, telecom and new media companies in Russia and the Baltics. It is funded by Nordic and Baltic private investors and managed by AS Martinson Trigon Venture Partners, a joint venture between Trigon Capital, a leading investment bank of the Central and Eastern Europe, and Allan Martinson, a technology and media entrepreneur. MartinsonTrigon was launched in summer 2005 and investment into Reksoft is its first in the planned 20-30 m EUR portfolio.

"Reksoft is one of the most professional IT companies we have seen in Russia. The core values of its founders and the management have been professionalism, dedication and integrity. We fully support Reksoft business vision and hope that our investment will help the company to become one of the stars of Russian and global IT industry," said Allan Martinson, the managing partner of Martinson Trigon Venture Partners.

Russian software outsourcing industry expects to reach 1 billion USD in the current year and is one of the most dynamic sectors of IT industry in Russia showing 30% of annual growth. Backed by active support from the government and sponsored by the industry associations, Russian software outsourcing market has been recognized as an outsourcing location of the years to come by industry analysts and global clients among them being Alcatel, Borland, Intel and Sun Microsystems.

Additional information:

About Reksoft (www.reksoft.com)

Since 1991 Reksoft provides offshore software development services with a key focus on Telecommunications, Hospitality & Travel, and Finance sectors. Reksoft cross-industrial practices range from implementing ERP, CRM, and BI systems, to constructing B2B and B2C electronic market places. Reksoft quality system complies ISO 9001: 2000 standard whereas Reksoft information management practices are aligned with the requirements of ISO 17799. Currently the company counts 260 employees and is in an active growth phase.

About Martinson Trigon Venture Partners (http://www.martinsontrigon.com)

Launched in June 2005, MartinsonTrigon is an investment fund targeting high-growth IT, technology, telecom and new media companies in Russia and the Baltics. It is funded by Nordic and Baltic private investors and managed by AS Martinson Trigon Venture Partners, a joint venture between Trigon Capital, a leading investment bank of the Central and Eastern Europe, and Allan Martinson, a technology and media entrepreneur.