INVL Technology reports 97% profit jump as it seeks portfolio sale
INVL Technology, a closed-end investment company focused on IT businesses in the Baltic region, has reported an unaudited net profit of EUR 1.51 million for the first half of 2026, a near-doubling of the EUR 0.766 million recorded in the same period last year. The company, managed by INVL Asset Management, simultaneously disclosed it is in active discussions with potential acquirers for its entire portfolio, with ICON Corporate Finance appointed as M&A adviser earlier this year.
Net asset value reached EUR 66.1 million at the end of June, with a NAV per share of EUR 5.52, both figures up 2% since the start of the year. The company's investment horizon is fixed: all portfolio positions must be realised by mid-July 2028, after which proceeds will be distributed to shareholders.
Portfolio performance
Across its three operating subsidiaries, aggregated revenue for the first half of 2026 reached EUR 35.9 million, up 22% year-on-year from EUR 29.4 million. Gross profit rose 23% to EUR 12.26 million, and aggregated EBITDA climbed 46% to EUR 3.96 million, against EUR 2.72 million a year earlier.
The strongest growth came from Novian, the group's Baltic IT services arm. Novian posted H1 revenue of EUR 18.69 million, a 49% increase on the EUR 12.5 million recorded in H1 2025, with EBITDA up 71% to EUR 1.98 million. A significant driver was Novian's deep-tech segment, which covers programming solutions and AI for defence, aviation and quantum computing applications. Managing partner Kazimieras Tonkunas said revenue in that segment grew 2.7-fold in the period to EUR 3.9 million. GovTech subsidiary NRD Companies recorded revenue of EUR 6.42 million, up 15%, with EBITDA margin expanding from 12% to 17% and EBITDA itself rising 57% to EUR 1.07 million. NRD Cyber Security, the group's cybersecurity arm, grew more steadily, with revenue up 3% to EUR 6.2 million and EBITDA up 22% to EUR 1.06 million. Tonkunas noted that recurring service volumes are increasing at NRD Cyber Security and that the company plans to nearly double the number of recurring contracts by year end.
Market context and sale process
INVL Technology's portfolio-sale process sits against a backdrop of sustained interest in Baltic technology assets from Nordic and Central European strategic buyers and private equity. The region has developed a credible cluster of cybersecurity and GovTech firms, partly reflecting government investment in digital-resilience capability across Estonia, Latvia and Lithuania following increased geopolitical pressure on the NATO eastern flank.
The combination of a hard exit deadline and a named external M&A adviser signals that the sale process is substantive rather than exploratory. Buyers will be assessing each subsidiary separately: NRD Cyber Security's recurring-revenue profile and cybersecurity tailwinds make it an attractive standalone carve-out, while Novian's defence and AI-adjacent deep-tech segment may attract interest from European defence-tech investors, a category that has seen a sharp increase in capital deployment since 2022.
The EU's NIS2 directive, which broadened mandatory cybersecurity obligations across the bloc from late 2024, has materially expanded the addressable market for managed and recurring security services of the kind NRD Cyber Security provides, a factor that could support valuation arguments in a sale process. Any transaction involving GovTech subsidiary NRD Companies may also attract scrutiny under national-security foreign-investment screening regimes given its work with government clients.