Croatian agency Five acquired for $40 million

(Image: FIVE/Facebook)

Croatian digital agency FIVE and its U.S subsidiary has been acquired by international technology services provider Endava, the company announced today.

FIVE was founded in 2005 by Viktor Marohnić, and five years later it was joined by current partner and co-owner Luka Abrus. They have 220 employees in Zagreb, New York, Osijek, Rijeka and Split, with a focus on programming and marketing services for American clients.

The agency delivers a full spectrum of services, including product strategy, the design, build and delivery of digital experiences, and ongoing growth marketing using agile methodology combined with a scientific/metrics-driven approach to product design.

FIVE brings to Endava a list of clients primarily based in the United States. This list includes well-known companies such as Rosetta Stone, Bullhorn Inc. and Napster. FIVE partners with clients to create new revenue streams and applies its results-driven focus to help those clients increase revenue, and user engagement, while lowering acquisition costs, all results that are critical to digital product success in the long term.

Telegram reports that negotiations on the acquisition had been going on for the last few months, and the amount of $40 million or HRK 250 million had finally been agreed.

“I am delighted to welcome FIVE into the Endava family. They are a wonderful team who bring additive skills into Endava, particularly in the product strategy and growth optimization space, which we believe many of our clients will find compelling. Additionally, their credentials as a leading New York agency with delivery centers in Croatia is aligned with our business model and further strengthens our footprint in the Adriatic region,” said John Cotterell, Endava’s CEO.

“We are thrilled to be joining Endava. We saw early on the cultural fit and were very excited about Endava’s interest in our people and core services, including Product Strategy, Design and Growth Marketing. We believe being part of a larger platform and joining forces with Endava will open up even more opportunities for our talent and provide our clients with additional capability and capacity,” said Viktor Marohnić, Founding Partner at FIVE.

Endava has over 7,000 employees located all over the world. 

A number of acquisitions and investments in Croatian startups have taken place recently. In December last year, it was announced that gaming company Nanobit had been sold for 148 million euros, and large investments have also been made in Croatian companies such as Rimac Automobil and Photomath.