- The EBRD has committed to investing €60 million in M Plus Croatia
- The company provides outsourcing services to businesses in 57 countries
- Funds will allow Mplus to further expand internationally
The EBRD has signed an investment agreement with Croatia’s Mplus Group (Meritus ulaganja d.d.), according to which it will invest €60 million into M Plus Croatia d.o.o., a subsidiary that consolidates the activities of the companies operating in the group’s business-process outsourcing (BPO) segment and provides services in 57 markets. Mplus Group is listed on the Zagreb Stock Exchange.
The purchase of the newly issued shares will be executed after the standard regulatory approvals have been obtained. Following the investment, the EBRD will own a 28.3 percent stake in the company. Mplus Group, which currently holds a 68.7 percent stake, will remain as the majority and controlling shareholder, with a 59.7 percent stake, while MidEuropa will continue to support the business as a minority investor.
Once executed, this capital increase will be the largest equity investment by the EBRD in the technology services sector in the region and one of its largest equity investments in any sector in Croatia.
M Plus Croatia will use the invested funds for the ongoing expansion and consolidation of its strategic position in the international BPO industry, primarily through acquisitions. The company will also continue to improve the efficiency of business processes and to create additional job opportunities in the region and beyond.
Mark Davis, EBRD Regional Director for Central Europe, said: “We are excited to make this investment in M Plus Croatia, such an innovative, regional-growth company. In doing so, we reconfirm our commitment to innovation and the development of the Croatian economy, including by supporting outward foreign direct investment.”
Darko Horvat, President of the Management Board of Mplus Group, said: “The increase in demand for our services has resulted in the need for additional investments in the development of our BPO operations. The partnership with the EBRD – a leader in financing projects that foster economic inclusion, which is also a priority for us – is a strategic and value-based choice, not just an economic one. This partnership puts us in an active position that enables accelerated expansion through acquisitions.”
Since the initial public offering in 2019, Mplus Group has grown its BPO business rapidly, operating under the umbrella of M Plus Croatia, making it the largest independent provider of business-process technology outsourcing in the region. Meanwhile, the Group itself has expanded, adding two more vertical business segments alongside BPO: the management of employment and human resources, and e-commerce (beauty, healthcare and travel platforms). Overall, the Group has 70 subsidiaries and more than 14,700 employees in 18 countries, with ca. 12,500 employees working within the BPO business segment.
Including this investment agreement, the EBRD has committed around €4.7 billion to Croatia’s economy in 30 years of the Bank’s operations there.