CVC Capital Partners has agreed to acquire a minority stake in CDN77, a Prague-based internet infrastructure provider, in a transaction that values the company at approximately $1.9 billion (€1.7 billion). The deal represents the first time CDN77 has accepted external capital since it was founded in 2011. A source familiar with the matter said the agreement is the largest private equity transaction in the Central and Eastern European technology sector this year.
Market Forces Behind the Investment
The global race to secure the physical backbone of the internet is accelerating as demand from artificial intelligence and streaming media continues to surge. Investors are increasingly shifting attention away from consumer software and toward providers of computing power, edge networks, and data storage. CDN77 has positioned itself at the center of this shift with its own global edge network, moving traffic at a capacity of 330 terabits per second across more than 230 locations worldwide.
Bootstrapped Success and Engineering Culture
Founded by Zdenek Cendra, the company has spent more than a decade building and operating infrastructure without raising a single euro of outside capital. It has remained cash-flow positive for eleven consecutive years and serves major digital platforms including Rakuten TV, Udemy, and Starz. Cendra will retain his majority stake and continue as chief executive, while the existing management team remains in place to ensure continuity for customers.
Why CVC Chose CDN77
CVC executives said the investment reflects a growing appetite for infrastructure assets that support complex global networks. Jakub Canda, Senior Managing Director at CVC, described CDN77 as one of a kind, pointing to its people and unique culture rather than its physical locations as the core asset. The firm emphasized that its role is to support the existing leadership, not to change the operational philosophy that has driven eleven years of profitability.
New Capital for Ambitious Expansion
The new financial backing is intended to give CDN77 the confidence to pursue larger and more capital-intensive opportunities without disrupting its existing client experience. The company is scaling beyond content delivery into edge computing, digital storage, and dedicated CPU and GPU infrastructure tailored for heavy artificial intelligence workloads. Operating its own hardware rather than white-labelling third-party solutions gives CDN77 an edge in enterprise contracts and supports expansion across North America, APAC, and Latin America.
Financial Benchmark for the Region
The transaction sets a significant financial benchmark for founder-led infrastructure businesses across Central and Eastern Europe. CDN77 is reportedly targeting revenues of about $270 million (€250 million) this year, up from $218 million (€201 million) in 2025. The reported valuation implies a multiple of roughly seven times sales, providing a clear reference point for how private markets price profitable, scaled infrastructure assets.
Czech Ecosystem Milestone
The deal also marks a milestone for the Czech startup ecosystem, where Cendra has been a long-time backer of local founders through Czech Founders VC and other initiatives. It demonstrates that a bootstrapped company from Central and Eastern Europe can build world-class, globally scaled infrastructure. The partnership highlights a maturing regional ecosystem capable of attracting major private equity interest.
By pairing a bootstrapped Czech engineering firm with one of Europe's largest private equity groups, the partnership signals a broader shift in how global investors view infrastructure businesses from Central and Eastern Europe. CDN77 now has a sparring partner that can open doors the Prague team could not open alone. As demand for digital infrastructure continues to multiply, the company is positioned to expand its footprint while preserving the customer-focused culture that built its reputation.