Group-IB management buys out LETA Group’s share
LETA Group is announcing it has sold all its shares at Group-IB through a management buyout (MBO). The proceeds from this transaction will be channeled to LETA Capital, a venture fund founded by LETA Group.
In 2010, LETA Group acquired 50% assets of Group-IB. Within these three years, Group-IB’s staff strength increased 5 times and the company became a recognized leader in the Russian market in the field of information security incident and computer crime investigations.
“During our cooperation with LETA Capital, Group- IB set up the Computer Forensics Laboratory – the biggest in eastern Europe. Today, this Laboratory can handle about 80% of the most complex and high-profile cases on cybercrime and high-tech crimes. A private CERT was launched first in Eastern Europe. Group- IB opened a division for online brand protection. Its cybercrime prevention division became more powerful and underwent major development. It should also be noted that during this period, the company was able to detect and neutralize 5 largest criminal groups that committed fraudulent activities on online banking systems in the CIS. This was possible thanks to the company’s capacity and its employees’ expertise. We will continue to strengthen our leading position in the cybercrime investigation and prevention market in Eastern Europe. By 2017, we plan to make it in the TOP 10 of world leaders in this market,” –Ilya Sachkov, CEO, Group-IB, commented.
“Group-IB is a mature independent company that has experienced a period of strong growth. At late August 2013, we received an MBO proposal from managers of Group-IB. We were satisfied with the stated price and the income received from the transaction. Moreover, the company remained in safe hands and gained more independence and flexibility”, Alexander Chachava, president of LETA Group, noted.
According to LETA Group’s strategy, these funds will be allocated to its venture daughter – LETA Capital. Unlike LETA Group, LETA Capital chooses high-risk projects for investments, expecting bigger results in the long term.
“Besides, this MBO is for us an experience in implementing one of the exit strategies. A similar form of transaction is becoming more common and is a good solution for funds planning to leave companies that are not growing to become IPO/large strategic acquisitions, but still remain a successful and sustainable business. When making these transactions, we are able to model such an outcome of events when assessing the projects”, Alexander Chachava, president of LETA Group, explained.
About Group-IB: Group-IB is an international company specializing in preventing and investigating high-tech cyber crimes and fraud. The company offers a range of services on prevention of financial and reputational damages, consulting and auditing of information security systems, and computer forensics. The company also develops a number of innovative software products used to monitor, detect and prevent emerging cyber threats.
The Group-IB team is made up of experts with unique skills and solid practical experience. They are internationally certified by CISSP, CISA, CISM, CEH, CWSP, GCFA, and also have information security state certificates. Group-IB is licensed by the FSB (the Russian Federal Security Service) to work with classified information (GT No. 0064472, registration number 4490).
About LETA Group: LETA Group (http://www.letagroup.ru/rus/) is a management company that deals with advanced information technologies. The main aim of LETA Group is to ensure successful development and co-operation among the Group companies. LETA Group’s strategic objective is to create and develop leaders in selected areas of activities and to discover new ways of promoting business. The Group conducts investment activities through its venture fund LETA Capital.