EUROPEAN DYNAMICS , a global, market leading provider of eGovernment software and digital transformation services to Governments and International Institutions, announced a minority investment led by CAPZA (investing through its flagship Flex Equity Mid-Market 2 fund) and joined by Abry Partners (“Abry”, investing through its Senior Equity Fund, ASE VI, LP) (together “the Investors”).
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The Investors will support ED’s growth strategy together with its founder and Chief Executive Officer, Constantinos Velentzas, who retains a significant majority of the Company’s share capital. This investment marks the Company’s first partnership with financial investors since its inception.
CAPZA, who will be the lead investor in the transaction, is an established private investment platform across private debt and private equity in Europe with more than €9.1 billion of assets under management (AuM). CAPZA is part of AXA Investment Managers Alts (“AXA IM Alts”), a global leader in alternative investments with over €186 billion of AuM. Through its Flex Equity Mid-Market 2 fund, CAPZA invests tickets of up to €150 million in European and global leaders with strong growth potential.
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Abry is a leading sector-focused North American private equity firm which invests across the capital structure managing $17 billion of assets across several investment strategies.
Founded in 1994, the Company has become a leading eGovernment and digital transformation partner for the public sector, recognised for its deep expertise and ability to leverage technology and data to drive innovation. ED has also developed and commercialises a suite of market leading software products specifically tailored to core eGovernment activities (notably in the fields of customs, taxation, procurement, financial markets and IP management).
With a staff of c. 1,200 across 7 main international operating subsidiaries, the Company works with c. 100 clients globally including Federal Governments, European Institutions & International Organisations in more than 30 countries and 4 continents. ED has established a multidisciplinary Technology Centre in Greece, and prepares its expansion in France, the Nordics, DACH and the USA. In this context ED is intensifying its recruitment plan, aiming at hiring 800 technology experts over the next few years (more than 50% of these new posts will be based in Greece). In addition, the Company negotiates partnerships with universities and academic centers in Europe and in the USA.
The Company has experienced significant organic growth, notably driven by the growing needs of institutions and government bodies’ IT solutions to enhance operational efficiency and ensure compliance with regulatory constraints. The partnership with the Investors will accelerate ED’s expansion within and outside Europe, while it will also support through the necessary investment, innovative product development and strategic M&A.
Completion of the transaction is expected by summer 2025 and is subject to customary closing conditions and approvals.
Constantinos Velentzas, Founder and Chief Executive Officer, EUROPEAN DYNAMICS, said: “We are thrilled that CAPZA and Abry are investing in ED as minority partners, which proves the embedded value of our Company. This partnership reflects a shared conviction in our strategic model as well as the common ambition of a leadership position in the critical and ever-evolving landscape of the eGovernment sector. Today’s announcement is also a testament to the hard work of everyone at ED, our three decades of organic growth and the opportunity that lies ahead. With the Investors, we can grow our organic offerings, accelerate our international expansion plans and further develop our ability to innovate, bringing our services and products to more clients around the world.”
Jess Wizman, Partner Flex Equity Mid-Market at CAPZA, said: “We are proud to partner with EUROPEAN DYNAMICS, a market leader in digital transformation for Governments, European and International Institutions. CAPZA has a strong track-record in supporting high-growth software and IT services companies, and we were particularly impressed by ED’s deep domain expertise, mission-critical solutions, and international reach. We are excited to support Constantinos Velentzas and the management team in ED’s next growth chapter, notably in key markets like France and in strategic sectors including Defense.”
Tyler Wick, Co-Head of Abry Senior Equity Fund at Abry Partners, said: “Constantinos and the ED management team have built a world-class software and digital transformation platform dedicated to providing complex and mission critical solutions to the public sector. We have extensive experience partnering with government technology companies in North America and Europe and we believe that EUROPEAN DYNAMICS is well positioned to expand its global leadership position. Abry is thrilled to partner with the Company and support the management team in this next phase of growth, including expansion into North America and into rapidly growing categories such as artificial intelligence.”
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