GGA Software Services

The developer of the custom software, the American-Belarusian-Russian company Epam Systems, announced in the summer of 2014 acquisition by it GGA Software Services company. Transaction parameters and also financial results of work of GGA Software Services of the company were not reported.

Nevertheless, it is known that in addition to the unnamed monetary reward sellers of a share in GGA will receive ordinary shares of Epam for $10 million Besides, in case of achievement of certain financial results by the company, sellers will receive the additional amount in cash and the ordinary^[1].

The headquarters of GGA is based in New England, in the city Cambridge of the state Massachuchets, however its office of development is in the Russian St. Petersburg.

As the co-founder of GGA Software Services along with Richard Golob in 1994 Vitaliy Aronov, the graduate of the Leningrad state university in an applied mathematics acted. Before moving to the USA in 1993 as the website of GGA reports, Vitaliy Aronov worked more than 10 years at executive positions in the field of IT at the enterprises Russian (or Soviet) defense industry. Aronov holds a position of the technical director (CTO) in GGA company.

Among top managers of GGA one more native of Russia is mentioned: Yuriy Gankin who in due time graduated the St. Petersburg chemical and technology university majoring in physical chemistry. Gankin is engaged in development of databases in the field of toxicology, pharmacology and materials science, he is a developer and the owner of patents for algorithms and the equipment for spectrometer recognition of chemical compounds. Yuriy Gankin holds a position of the director of science (CSO) in GGA company.

Financial parts of the transaction

On October 7, 2014 EPAM told some details of the closed deal on acquisition of a new asset - GGA Software Services company. Transaction amount was $45.5 million.

The merger agreement is signed in June, 2014. Within the transaction from GGA passed 329 IT specialists and 126 scientists into EPAM, all Russian legal entities who are a part of GGA or child are purchased. Sellers of GGA received $13.5 million in a cash type.

In addition, sellers of GGA will receive the shares EPAM worth $11.7 million (the share price is specified transaction date) on account of rendering future services. The stocks EPAM worth $8.9 million, cash in the amount of $11.4 million should be paid at achievement of GGA of certain results and further work of sellers in the company.

Securities will be listed to sellers by annually equal shares within three years from the moment of the conclusion of the transaction. If someone from sellers will leave the company, the shares which are not received by it are cancelled. Actions worth $4.5 million from the general packet of securities are deposited on the account of the eskrou-agent in a warranty type of execution by sellers of obligations. At performance of all specified agreements transaction amount is $45.5 million.

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