Softline, an international solution and service provider with Russian roots, is pursuing its international expansion with two deals announced this month, ahead of a potential London IPO.
The group announced it acquired the licensing business of Squalio, an international data technology company, in the Baltic states (Estonia, Latvia and Lithuania) and Belarus Belarus and Estonia. Founded in 1997 in Latvia, Squalio has representative offices in ten countries around the world.
“We are excited to have acquired Squalio as they have developed a dominant licensing business through first-class licensing expertise and certifications with key strategic vendors, such as Microsoft, Adobe, Oracle, IBM, Google and other cloud and security solutions leading players,” stated Softline Global CEO Sergey Chernovolenko.
“As we continue to expand our presence in Eastern Europe and the Baltics through a strategy that balances acquisitions and organic growth, we are thrilled to have the opportunity to grow alongside Squalio in the coming years,” he added.
Softline also announced the creation of a joint venture with Egyptian DigiTech. This digital transformation company serves customers in a variety of industries with a focus on cloud design, professional and managed services. Softline sees in Egypt “an attractive, fast-growing market and a strategic foothold in the Middle East.”
Born in Russia in 1993, Softline is now an international group with offices in 55 countries and 95 cities — mostly in Eastern Europe, the Americas and Asia. Its offering focuses on digital transformation, cloud services and cybersecurity. In 2020, the group’s consolidated turnover neared $2 billion, up 13.2% year-on-year.
That same year, the company moved its headquarters from Moscow to London, while the share of its international business reached 45%. Softline acquired controlling stakes in German eponymous company Softline AG and in Embee, an Indian IT company specialising in cloud services, software licensing, cybersecurity and system integration services. Softline also bought the software development outsourcing business of Aplana Group, a Russian company.
