Digital Mind, supported by investment from Livonia Partners, acquires leading Polish Microsoft Dynamics partner EIP Dynamics

Digital Mind AS, a business process digitalization specialist for large and mid-sized organizations in the Baltic states, announced that it will acquire a 100% stake in EIP Dynamics Sp. z o.o (referred to as EIP Dynamics), a prominent Microsoft Enterprise Resource Planning (ERP) solution provider in Poland serving some of the largest companies in the country and internationally. 

EIP Dynamics was previously owned by EIP S.A., a business management company founded and controlled by Mr. Pawel Prasula, a Polish serial technology entrepreneur. 

The acquisition will be financed with equity investment provided by Livonia Partners

The acquisition will allow Digital Mind to create a strong regional Microsoft Business Applications champion serving clients in the Baltic and Central European countries and it will position the Company as a scalable platform to execute further business acquisitions in the CEE region. The acquisition is aimed at significantly enhancing Company’s delivery capabilities and enabling cross-border teams to serve large local and international clients with complex digitization needs. Group’s forecasted consolidated revenue for 2023 is 24 million euros and the team will exceed 300 professionals.

“The acquisition of EIP Dynamics, coupled with the strategic investment by Livonia Partners, marks a historic milestone for Digital Mind. This momentous event underscores our unwavering commitment to elevating our capabilities and delivering state-of-the-art business application solutions to our esteemed clients. As we embark on this transformative journey, our aim is to solidify our position as a prominent Microsoft Dynamics specialist in the Central and Eastern European (CEE) region. 

We are truly inspired by the exceptional competence and entrepreneurial spirit of the EIP Dynamics team. Their expertise aligns seamlessly with our vision for sustained growth and innovation. We eagerly anticipate the synergies and advancements that this strategic move will foster for both companies’ teams, clients, and stakeholders.This acquisition not only reflects our dedication to meeting the evolving needs of our clients but also signifies a significant step forward in our quest to become a leading Microsoft cloud solutions player in the CEE region. We are confident that this strategic alignment will bring about transformative results, reinforcing our commitment to excellence and positioning Digital Mind at the forefront of cutting-edge solutions in the business application landscape” Rinalds Sluckis, CEO of Digital Mind. 

Ernests Bordans, partner at Livonia Partners added: “We are very pleased to support Digital Mind’s management in this transaction, and I know that this is just the beginning of their international ambitions. The demand for modern ERP system integration is growing rapidly, and after this acquisition more than half of Digital Mind sales will be generated from customers outside the Baltics. The Company differentiates itself with specific industry expertise, which has ensured very high customer loyalty.”

“In building EIP Dynamics’ growth strategy, I have always focused on people – building a longer table for them, not a higher fence. I believe that the further expansion of the company will focus primarily on the personal growth of individuals, but already in a more international context. 

I am glad that new colleagues from Alna Business Poland will join and expand the EIP Dynamics team. I am convinced that under the leadership of Marta Osiak as CEO of the joint Polish company they will find their own path of excellence. 

I will be happy to support Digital Mind and Rinalds Sluckis. His positive energy and focus on goals will ensure the acceleration and effective growth of EIP Dynamics. I am confident that the Microsoft ERP + AI + Cloud technologies will ensure further benefits to customers, translating into successful development of our employees within the Digital Mind Group.” – Pawel Prasula, CEO of EIP S.A. 

Digital Mind Group’s company Alna Business Solutions Sp. z o.o. Poland will be integrated into EIP Dynamics team of 130 professionals and will be led by EIP Dynamics’ CEO Mrs. Marta Osiak.  

The transaction is pending Competition Council approval and is anticipated to conclude in the beginning of 2024. 

Digital Mind’s financial and deal advisor was Aventis Advisors / Oaklins Baltics, legal advice was provided by BCGL Poland and ZAB Eversheds Sutherland Bitans Latvia law offices. 

About Digital Mind: 

Since its establishment in 2005, Digital Mind has been at the forefront of delivering tailored business application solutions to both large and mid-sized organizations across various sectors, including finance, insurance, logistics, retail, telecommunications, manufacturing, construction, public sector, and other domains. Our core expertise lies in providing comprehensive services related to implementation and management of Enterprise Resource Planning (ERP), Enterprise Content Management (ECM), Intelligent Process Automation (RPA cloud business applications. 

With offices located in Riga, Vilnius, Warsaw, and Tallinn, our company currently serves a diverse clientele of over 350 organizations in the region. Our dedicated team of 180 professionals is committed to delivering excellence in service. In 2023, we forecast revenue of 14 million Euros. 

In Lithuanian and Polish markets, company operates under Alna Business brand.  

About EIP Dynamics: 

EIP Dynamics, a leading force in the realm of Microsoft Dynamics technology solutions, has consistently demonstrated a commitment to innovation and excellence since its inception. Specializing in tailored, industry-specific implementations, the company has amassed a portfolio featuring dozens of successful projects utilizing Microsoft Dynamics 365 Business Central and a multitude of installations of Microsoft Dynamics NAV. 

As a distinguished Microsoft partner, EIP Dynamics stands out for its progressive approach, incorporating a range of proprietary solutions seamlessly integrated with the Microsoft Dynamics ecosystem. Noteworthy examples include the B2B Portal and the cutting-edge Delivery App designed for drivers. 

EIP Dynamics, an international entity with a global footprint, serves clients across Europe, the United States, and Canada. Beyond being a software provider, the company has earned recognition as a trusted partner offering comprehensive support services to a diverse clientele. 

With a workforce exceeding 130 professionals, the company’s dedication to client satisfaction and technical expertise positions it as a key player in the region. 

EIP Dynamics foresees 2023 revenue of 10 million euros, as business experiences significant growth reflecting the company’s unwavering commitment to delivering top-notch solutions and services to meet the evolving needs of its global clientele. 

About Livonia Partners: 

Livonia Partners is a pan-Baltic private equity investment firm. Currently investing from EUR 157 million Fund II, Livonia team works across Estonia, Latvia, and Lithuania. Other recent investments include Stebby (the largest pan-Baltic employee wellness benefit platform), Bagfactory (a leading manufacturer of reusable non-woven carrier bags in Europe), and Bestair (heat pump and green home climate solutions provider). Fund investors are Baltic and Nordic pension funds, including Swedbank, the European Bank for Reconstruction and Development, the European Investment Fund (EIF) investing through the Baltic Innovation Fund 2 (an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, and the EIF) and others.