Prime Investment, one of the leading investment banking companies in the Baltics, has issued semiannual report
Baltic ICT Market News. The report enlightens important corporate and M&A events of Baltic ICT market and provides proprietary rankings of the leading Baltic IT service companies.
IT sector growth has been accelerating for the last 4 consecutive years. In 2007 H1 IT sector growth continues, market conditions remains strong. Number of M&A transactions has also increased, suggesting that market participants are looking for alternatives ways to expand and indicates positive expectations towards future market conditions.
Combined revenues of Prime’s Top 20 companies grew by 30.4% in 2007 H1, compared to 28.3% last year. Exigen Services again secured the 1st place with IT services revenue of more than EUR 11.5m and growth of 23.4% y-o-y. It was followed by Alna and Microlink Eesti with revenue of EUR 5,8m and EUR 5,3m respectively. Historically, IT service revenue growth in H2 is higher than in H1 and this suggests that most of the companies are likely to enjoy strong results in H2 and in the whole year.
The rankings that are being compiled since 2001 are based on revenues from in-house developed IT services and value-adding efficiency. The ranking does not include any sales of hardware, distribution of software other than developed in-house, office equipment or other products.
Next issue of Baltic ICT Market News, containing annual results for 2007, will be published in May 2008.
* ICT – information and communication technology
