Billionaire Soros Invests in Ukraine Software Firm

Billionaire Soros Invests in Ukraine Software Firm

Ilya Khrennikov
November 18, 2015 — 8:00 AM EST November 18, 2015 — 1:13 PM EST

Fund buys undisclosed stake in Ciklum with 2,500 programmers

Fund co-founded by Ukraine Finance Minister sells shares

George Soros is buying a stake in Ukrainian software developer Ciklum Holding Ltd. after committing to invest as much as $1 billion to help the country’s economy earlier this year.

The Ukrainian Redevelopment Fund, advised by Soros Fund Management LLC, agreed to buy an undisclosed stake in Ciklum from Danish founder Torben Majgaard and private-equity fund Horizon Capital, according to a statement Wednesday. Horizon was co-founded by Ukrainian Finance Minister Natalie Jaresko.

“It’s an investment in what I call the ‘New Ukraine’ – Ukrainians who are young, well educated, and eager for their country to break from the past and to build an open society,” Soros said in the statement.

Ciklum employs more than 2,500 programmers in Ukraine and other countries. Like U.S.-traded EPAM Systems Inc. and Luxoft Holding Inc., the company’s business model is betting on cheaper engineering talent from Central and Eastern Europe to develop software for the U.S. and Western Europe.

(Corrects in deck headline to show Jaresko no longer has interest in Horizon.)