Managers of the INVL Technology portfolio company NRD Cyber Security will get option incentives
The managers of NRD Cyber Security, a cybersecurity company owned by the IT business investment company INVL Technology, will be given the incentive of options to acquire shares of the company. The Investment Committee of INVL Technology agreed that the managers of NRD Cyber Security will be able to acquire up to 10% of the company’s shares and thus participate in the increase of the company’s value.
This is the first company to benefit from the type of employee incentive programme approved at the extraordinary general meeting of shareholders of INVL Technology held on 29 October this year.
“One of the most important objectives is the engagement of key employees in the growth of the company’s value, so it is planned to allocate up to 10% of the growth in the company’s value exceeding the minimum annual return of 15% agreed by the parties, calculated against the initial value of EUR 6.6 million at the end of 2019,” said Kazimieras Tonkūnas, the chairman of INVL Technology’s Investment Committee.
He said cybersecurity is a rapidly growing field and the foundation for a successful business is motivated and professional experts. The option programme and right given to employees to participate in the company’s ownership will make it possible to align the interests of shareholders and employees and more effectively pursue objectives.
Last year NRD Cyber Security developed and enhanced proprietary products and ongoing cybersecurity maintenance services. Since 2018, the company has been conducting two research and product development projects with a value of EUR 2.1 million which are co-financed by the European Union.
Considering the services being developed by NRD Cyber Security and its proprietary products as well as their establishment on the global market, INVL Technology expects that NRD Cyber Security’s compound growth rate from the start of operations through 2024 will exceed 30% per year.
According to Vilius Benetis, the CEO of NRD Cyber Security, the Lithuania-based company is extremely active in the international arena – it is actively investing in research and experimental development (R&D) and is currently developing several proprietary products for markets in Africa, Europe and Asia. “Stock incentives will help us not only utilise modern economic and management principles but also remain competitive on the labour market and retain experienced professionals,” Benetis said.
NRD Cyber Security is a cybersecurity consultancy, security incident response and technology deployment and development company. Through its activities, the organisation aims to create a secure digital environment for countries, governments and businesses, and thus implements projects of varying scales around the world. The organisation is owned by INVL Technology, a company that invests in IT businesses and is listed on the Nasdaq Vilnius exchange.
In July 2016, INVL Technology became a closed-end investment company (CEF). Its management was taken over by INVL Asset Management, which is part of Invalda INVL, one of the leading asset management groups in the Baltic States. INVL Technology’s companies operate in three directions: improvement of the business climate, e-governance, and IT services and software. INVL Technology will operate until 14 July 2026.