VTB sells Luxoft stake for $95.2m

Ellie Pullen
02 December 2013

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VTB Capital has sold its 10.4% stake in Luxoft, its portfolio company that listed on the NYSE earlier this year, for $95.2m, reaping a gross IRR in excess of 50%.

Through its holding company Rus Lux, the firm sold 2.8 million shares at a price of $34 apiece in a secondary public offering. VTB invested in Luxoft in June 2012.

According to the GP, the offering was more than three times oversubscribed and brought in institutional investors from Europe and the US.

VTB has fully exited the company following the secondary public offering.

Luxoft floated on the NYSE on 26 June this year. The IT company sold 4 million shares at a price of $17 each in its IPO, raising $69.5m and valuing the business at approximately $556m.

Since its first day of trading, Luxoft's stock has reached a high of $39 per share. At the time of writing, the company had a market cap of $1.24bn. Luxoft trades under the ticker symbol "LXFT".

Company
Founded in 2000 as a Moscow-based subsidiary of IBS Group, Luxoft is now headquartered in Zug, Switzerland, with 19 offices across 11 countries. The company employs 7,000 staff and generated turnover of $315m in the year ending in March 2013, as well as an EBITDA margin of 18.1%.

Luxoft provides IT services for the central and eastern European region, predominantly in the industries of finance, telecommunications, energy, automotive, aviation and travel.

The company has 130 clients, including Deutsche Bank, Credit Suisse, Bosch, Boeing, Dell and HP.

People
Dmitry Loschinin is the president and CEO of Luxoft. Tim Demchenko is the global head of private equity and special situations at VTB.