Soros invests in Ukraine's software development

Billionaire George Soros ispurchasing a stake in Ukrainian software developer Ciklum Holding Ltd. Recently Soros stated his commitment to invest as much as $1 billion to help Ukraine’s economy.

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.

"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," statement from Soros says.

 

Ciklum employs more than 2,500 programmers not only in Ukraine, but in other countries too. Like U.S.-traded EPAM Systems Inc. and Luxoft Holding Inc., the company’s business model is betting on cheaper outsourced labor from Central and Eastern Europe to create software for the U.S. and Western Europe.