The Latvian-based investment firm Riga Capital and the US-based business development company MVC Capital have acquired a majority stake in Lithuania’s leading electronic engineering solutions company Fima UAB. In the nearest future, Fima is set to penetrate the Latvian market, increasing competition in the market of the construction and modernisation of major infrastructure objects.

Fima is Lithuania’s leading company in the development of electronic engineering solutions and project management in Lithuania, providing services locally and to foreign enterprises for over 16 years. The transaction was implemented to support Fima’s long-term development strategy. The strategy entails Fima’s expansion throughout the Baltic Sea region and elsewhere in Europe, which will be led by the Latvian investment and advisory company Riga Capital. Fima will consider other acquisitions.

“We see this transaction as an investment in one of the most promising market segments – the development and implementation of technology solutions. Fima’s strong position in its market, combined with our financial investment and corporate management experience, paves the way for penetration of new markets in the Baltic Sea region and elsewhere”, points out Mr Nils Melngailis, the President of Riga Capital.

“One of Fima’s key priorities for the nearest future is to develop its business in Latvia, increasing competition in the sector of the construction and modernisation of major infrastructure objects. We will draw on Fima’s previous experience, for instance, from the modernization projects of Vilnius International Airport, Lithuanian Railways, Lietuvas Energy” underlines Ms Kristine Berzina, a partner of Riga Capital and the Chairperson of the Board of Fima.

The success of Fima’s management team is evident in the company’s market leader position and excellent reputation as an employer. Accordingly, the new shareholders have no plans to change the company’s organisational structure or management team.

Fima’s income in 2007 exceeded 38 million euros (26.7 mln lats), representing a 34% increase against the result in 2006. The value of projects currently in progress is in excess of 66.7 mln euros (46.9m lats).


About participants in the deal:

MVC Capital is a Business Development Company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For MVC's investor relations, please call 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.

Riga Capital is an investment and advisory firm focusing on companies with strong growth potential in the wider Baltic Sea region including Eastern Europe, Nordic countries and the CIS. Riga Capital’s unique strength lies in its combination of operational management experience and proven track record of transaction execution. Having worked with and managed leading Baltic and international companies, Riga Capital is able to build on its wealth of experience to work with management teams to create shareholder value.

Fima is Lithuania’s leading company for developing electronic engineering solutions and managing technological projects. Fima has been supplying services to companies active in Lithuania and abroad for already 16 years. To expand their operations, in 2006 UAB Fima formed a Latvian subsidiary SIA Fima. Complex and unique solutions for automation, data transmission, security, telecommunications etc. are intended for industrial, financial, trading and other businesses and infrastructural objects. Fima’s concept is based on customizing technologies to meet specific consumer requirements and find the most efficient solution. The company is currently on the list of potential NATO tenderers. Today, the company employs 380 highly qualified professionals. www.fima.lt