Houlihan Lokey Advises European Dynamics

Houlihan Lokey is pleased to announce that European Dynamics, a software, digital transformation and software development services provider to central government entities and supranational institutions, has signed an agreement to receive a minority investment from CAPZA and Abry Partners (Abry), subject to customary closing conditions and approvals.

European Dynamics is a GovTech and digital transformation powerhouse that provides proprietary software, digital transformation, and software development services to central government entities and supranational institutions. The company is recognised for its deep sector expertise, capabilities in leveraging technology and data to drive innovation, and ability to deliver complex and mission-critical solutions to the public sector.

European Dynamics has developed and commercialised a suite of market-leading proprietary software products specifically tailored to core eGovernment activities, including customs, taxation, procurement, financial data management, and intellectual property. Additionally, European Dynamics’ team of more than 1,200 staff provides end-to-end digital transformation and software development services. The company has more than 100 clients globally, including federal governments, European institutions, and international organisations in more than 40 countries and four continents.

CAPZA is a European private equity and private debt investor with more than €9.1 billion of AUM* and a strong track record in supporting high-growth software and IT services companies. CAPZA will be the lead investor in the transaction and is investing from its flagship Flex Equity Mid-Market II fund.

Abry is a North American private equity investor with more than $17 billion of AUM and a long, successful history of subsector-led investing strategies across North America and Europe. Abry is investing from its Senior Equity fund.

CAPZA and Abry are investing alongside Constantinos Velentzas, the founder and CEO of European Dynamics, who remains the significant majority shareholder. The parties will work with the wider management team to accelerate European Dynamics’ expansion and ambitious business plan within and outside Europe, while also supporting innovative product development and strategic M&A.

Houlihan Lokey served as the exclusive financial advisor to European Dynamics, managing a highly competitive process that included private equity investors from across the globe. The transaction highlights Houlihan Lokey’s expertise in the GovTech and IT services subsectors.

*Based on valuations as of 31/12/2024.

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