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# Czech CDN77 Sells Miniority Stake to CVC. Surpassing Unicorn Level Valuation?
- URL: https://www.therecursive.com/czech-cdn77-sells-miniority-stake-to-cvc-surpassing-unicorn-level-valuation/
- Published: 2026-09-24T10:13:12.000Z
- Updated: 2026-09-24T10:38:43.000Z
- Description: After operating without external funding for over a decade, Prague-based internet infrastructure provider CDN77 has sold a minority stake to private equity giant CVC.
- Author: The Recursive
- Tags: News, Czech Republic, CVC, CDN77, AI, data infrastructure

Private equity group CVC Capital Partners has agreed to acquire a minority stake in Prague-based internet infrastructure provider **CDN77**. Financial terms of the transaction were not being disclosed, however, a source familiar with the matter [told Reuters](https://live.euronext.com/en/financial-news/cvc-buys-minority-stake-internet-infrastructure-provider-cdn77?ref=therecursive.com) that the transaction values the company at approximately $1.9 billion (€1.7 billion). 

CVC executives highlighted that this represents **the largest private equity deal in the Central and Eastern European technology sector this year**, reflecting a growing appetite for infrastructure assets that support complex global networks.

## Success fueled by engineering excellence and customer focus

The **global rush to secure the physical backbone of the internet is accelerating**, driven by the insatiable demands of AI and streaming media. And iInvestors are increasingly looking beyond consumer software and pivoting towards the companies that actually keep the lights on: the providers of computing power, edge networks, and data storage. 

Against this backdrop of infrastructure demand, one of Central and Eastern Europe's **most quietly successful technology companies** has stepped into the spotlight, taking external capital for the very first time in its history.

Founded in **2011** by Zdenek Cendra, **CDN77** has spent the last decade building and operating its own global edge network without raising a single euro of outside capital. What began as a local project in Prague has grown into a vast operation spanning more than **230 locations worldwide**, moving traffic at a capacity of 330 terabits per second. 

The company serves as the hidden infrastructure for **major digital platforms**, counting video-on-demand platform Rakuten TV, online education group Udemy, and streaming platform Starz among its clients.

*"We have built CDN77 by picking up the phone when a customer calls, by caring more about whether customers are still with us in ten years than about this quarter, and by letting engineers make engineering decisions,"* commented Zdenek Cendra.

## *"CDN77 is truly one of a kind"* 

The decision to partner with CVC was heavily influenced by the private equity firm's **willingness to preserve the startup's unique operational philosophy**. CDN77 has remained cash-flow positive for eleven consecutive years by focusing strictly on technical excellence and direct customer relationships. 

Cendra, who will retain his majority stake and continue as Chief Executive Officer, stressed that the core management team will stay in place to ensure business continuity.

*"We spent a long time talking to potential partners, and the conversation with CVC was different to others; it was about *respect for what we have built so far* and where we want to take the company; not about what they would change,"* Cendra explains.

For CVC, the investment is a bet on the underlying architecture of the modern web. **Jakub Canda**, Senior Managing Director at CVC, points out that the true value of the business **lies not just in its server locations**, but in the highly skilled engineering team that acts and thinks like founders. 

*“We have assessed numerous technology companies and CDN77 is truly one of a kind. Its core asset is not the 230+ locations around the world but its people and unique culture that Zdenek has been able to build over the last fifteen years: a group of smart and savvy engineers who have grown the company together, caring about customers to a degree that is one of a kind at this scale and who still think and act like founders themselves."*

Canda adds their key task is to let Zdenek and his team continue to *"focus on their valued customers while at the same time build faster and go further wherever they can."*

> *"We feel privileged to have been chosen to be CDN77’s partner for its next stage of growth.”*

## Expanding the infrastructure footprint

The immediate goal for the partnership is to provide CDN77 with the confidence and financial backing to say yes to larger, more capital-intensive opportunities without disrupting the existing client experience.

The immediate goal for the partnership is to provide CDN77 with the confidence and financial backing to say yes to larger, more capital-intensive opportunities without disrupting the existing client experience. The fresh financial backing arrives at a critical juncture for the internet infrastructure market, where companies are increasingly pressured to consolidate or expand their offerings. While content delivery remains the company's foundational product – particularly video delivery, security features, and origin services – **CDN77 is actively scaling its broader services**.

This includes expanding into **edge computing, digital storage, and dedicated CPU and GPU infrastructure** tailored specifically for heavy artificial intelligence workloads. 

Operating their own hardware rather than white-labelling third-party solutions gives them a distinct advantage when competing for enterprise contracts against much larger corporate entities, while also enabling them to target aggressive growth across North America, APAC, and Latin America.

## Setting a new benchmark for CEE tech

Financially, the transaction sets a significant benchmark for other founder-led infrastructure businesses in the region. The company is [reportedly](https://live.euronext.com/en/financial-news/cvc-buys-minority-stake-internet-infrastructure-provider-cdn77?ref=therecursive.com) **targeting revenues of about $270 million (€250 million) this year**, an increase from $218 million (€201 million) in 2025\. When measured against the reported $1.9 billion valuation, the deal implies a multiple of roughly seven times sales, providing a clear yardstick for how private markets currently price profitable, scaled infrastructure assets.

Beyond the immediate financial implications, the deal represents a massive **milestone for the Czech startup ecosystem**. Cendra has quietly been an anchor limited partner in **Czech Founders VC** and a long-time backer of the local tech scene, continuously putting capital and time back into the next generation of regional founders. This massive valuation for a completely bootstrapped company proves again that building world-class, globally scaled infrastructure from CEE is entirely possible.

As the demands on digital infrastructure continue to multiply, the partnership between a bootstrapped Czech engineering firm and one of Europe's largest private equity groups highlights a maturing regional ecosystem. This deal is a **vital step for CDN77's long-term expansion**, where CVC will act as a valuable sparring partner who opens doors the Prague team could not open alone.