Softline, an international IT solution and service provider with Russian roots, confirmed yesterday its IPO plans. As reported by Reuters, the company plans to raise some $400 million through an IPO on the London Stock Exchange and a secondary listing in Moscow.
Targeting a valuation of around $2 billion, Software will float 20-25% of its shares, “a person familiar with the matter” told the news agency.
The proceeds will be used to develop and execute Softline’s growth strategy, “a combination of organic expansion and M&A transactions,” Igor Borovikov, chairman and founder, said in a statement quoted by Reuters.
This strategy includes expanding within emerging markets, as witnessed by the company’s recent moves in the Baltic states, Belarus and Egypt.
“Compared with developed markets, GDP growth is twice as fast (in emerging markets) and IT penetration is around 3-4 times lower,” CEO Sergey Chernovolenko said in a recent interview, quoted by Reuters.
Softline, however, is keeping an eye on Western Europe and North America, however.
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.
Around 40% of this turnover came from markets outside Russia, notes Reuters.
That same year, the company moved its headquarters from Moscow to London, while the share of its international business reached 45%. Softline acquired controlling stakesin German eponymous company Softline AGandin Embee, an Indian IT company specialising in cloud services, software licensing, cybersecurity and system integration services. Softline also bought the software development outsourcing businessof Aplana Group, a Russian company.
