EIP Dynamics
- acquired by -
Digital Mind

In a strategic move that marks a significant milestone in the realms of digital transformation and Microsoft Dynamics integration, Digital Mind AS, a leading business process digitalization specialist in the Baltic states, has announced its acquisition of a 100% stake in EIP Dynamics Sp. z o.o, a prominent Microsoft Enterprise Resource Planning (ERP) solution provider in Poland. Aventis Advisors played a pivotal role in facilitating this transformative transaction, advising the buyer on this strategic investment.

Background

Digital Mind, established in 2005, has been a key player in delivering tailored business application solutions to organizations across various sectors. With a focus on Enterprise Resource Planning (ERP), Enterprise Content Management (ECM), and Intelligent Process Automation, the company has built a strong reputation for excellence. The acquisition of EIP Dynamics, a renowned Microsoft Dynamics technology solutions provider, is poised to propel Digital Mind into a regional Microsoft Business Applications champion.

EIP Dynamics, previously owned by EIP S.A., stands out for its commitment to innovation and excellence. Specializing in industry-specific implementations of Microsoft Dynamics, the company has an international footprint, serving clients across Europe.

The acquisition is expected to significantly enhance Digital Mind’s delivery capabilities, allowing cross-border teams to serve clients with complex digitization needs.

Transaction Details

Strategic Vision of the Acquisition

The acquisition positions Digital Mind as a scalable platform for further business acquisitions in the Central and Eastern European (CEE) region. The company aims to solidify its position as a prominent Microsoft Dynamics specialist in the CEE region, with forecasted consolidated revenue for 2023 reaching 24 million euros and a team exceeding 300 professionals.

Rinalds Sluckis, CEO of Digital Mind, expressed his enthusiasm, stating that the acquisition is a historic milestone for the company. He highlighted the alignment of expertise between Digital Mind and EIP Dynamics, emphasizing their commitment to excellence and innovation in the business application landscape.

Integration and Leadership

As part of the integration process, Digital Mind Group’s company, Alna Business Solutions Sp. z o.o. Poland, will be integrated into the EIP Dynamics team of 130 professionals. The joint Polish company will be led by EIP Dynamics’ CEO, Mrs. Marta Osiak. This strategic move is expected to further enhance the capabilities of the combined team, bringing together the strengths of both entities.

Personal Growth Focus

Pawel Prasula, CEO of EIP S.A., highlighted the growth strategy for EIP Dynamics, emphasizing a focus on personal growth within an international context. Prasula expressed confidence in the leadership of Rinalds Sluckis and Digital Mind’s positive energy and goal-oriented approach, foreseeing benefits for customers and successful development for employees within the Digital Mind Group.

Financial Backing by Livonia Partners

Livonia Partners, a pan-Baltic private equity investment firm, provided the equity investment to finance the acquisition. The Livonia team, working across Estonia, Latvia, and Lithuania, demonstrated confidence in Digital Mind’s management and their international ambitions. Livonia Partners emphasized the growing demand for modern ERP system integration, anticipating that more than half of Digital Mind’s sales will be generated from international clients outside the Baltics post-acquisition.

Aventis Advisors’ Role

At Aventis Advisors, our involvement in the Digital Mind and EIP Dynamics merger was driven by a deep appreciation for the intricacies of the business application solutions landscape and a sincere commitment to facilitating a successful post-merger collaboration.

We approached the merger with a genuine eagerness to comprehend the complexities of the industry. Our efforts to gather market intelligence went beyond numbers, seeking a holistic understanding of industry trends, competitive landscapes, and regional nuances. By presenting a thorough exploration of available options beforehand, we sought to foster an environment where decisions could be made with confidence and foresight.

In negotiating a cross-border merger, we maintained a focus on collaboration and alignment. Our expertise aimed to find common ground while respecting the distinctive cultures of founders and management teams of both Digital Mind and EIP Dynamics.

Our role in steering the deal to its conclusion was characterized by a mix of determination and a proactive mindset. Acknowledging the challenges inherent in the process, we responded with agility to overcome obstacles during negotiations and closing processes.