Softline will significantly increase the staff of Russian developers and will deal with boxed software

Following the announcement of the division of its business into Russian and international, Softline announced new plans in Russia: to start developing “boxed software” and increase the development staff from 2,000 to 5,000 people. At the same time, Softline bought Value Point Systems, a company operating in the field of information security.

How Softline will develop in Russia

Softline, an IT distributor, following the announcement of the division of business into Russian and international, made announcements about the future development of the company in Russia. In particular, Softline is considering the possibility of developing its own software in the form of “boxed solutions”.

The commercial director of Softline in Russia reported about it Vladimir Lavrov. Another important area of ​​development for the company is custom software development.

In addition, as the founder and main shareholder of Softline Igor Borovikovthe Russian business of the company will focus on import substitution of foreign solutions, the development of cloud solutions and services, the production of its own software and equipment, as well as services in the field of information security.


Softline announced plans to create “boxed software” and increase the staff of developers from 2,000 to 5,000 people

Borovikov also promised to increase the number of developers working in Russia. It is planned to increase their number from 2,000 to 5,000 within two or three years. That is, the number of developers in Softline will grow by 2.5 times.

Softline bought Indian Value Point Systems

At the same time, Softline is expanding its international presence: the company announced the acquisition of the Indian company Value Point Systems (VPS), operating in the field of information security and digital infrastructure. The amount of the transaction and other parameters of the acquisition are not disclosed.

VPS has been on the market for over 30 years, the company employs about 1.2 thousand people. VPS in India has about 2 thousand clients and seven offices. VPS is a partner of Microsoft, Cisco, AWS, VMWare, HP, Hewlett Packard Enterprise, CrowdStrike, Zscaler and more.

VPS has built a portfolio of six solutions and services: Cyber ​​Security, Data Center Modernization, Network Transformation, Cloud Transformation, Digital Workplace, and IT Service Management. Softline intends to integrate VPS solutions into its portfolio, especially the network security center, which is one of the leading in India. In addition, 800 highly professional VPS engineers will join the Softline team.

How Softline bought up Indian IT companies

Softline is already present in the Indian market, and the purchase of VPS will be the company’s third acquisition in this country. So, in 2020-2021. Softline has consolidated a 100% stake in Embee, a software licensing, cloud services, cybersecurity and system integration company. Acquisition costs were $42 million.

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In early 2022, Softline also acquired Indian cloud service provider Umbrella Infocare. Taking into account the VPS team, the staff of the Indian division of Softline will increase to 2.2 thousand people.

Softline business section

As a reminder, a little earlier Softline announced the parameters of the scheme for dividing the business into two companies with code names Softline Russia and Softline Global. The Russian business of Sofline – “Softine Trade” – is transferred to Igor Borovikov for a symbolic cost of $1.

All other Softline shareholders receive compensation in the amount of 0.606 shares for each share they hold. As a result, Borovikov’s share in Softline will decrease from 53% to 44%. The transaction must be approved by the board of directors of the company.

It is planned that Softline Global will retain its listing on the London Stock Exchange (LSE); The IPO (initial public offering) on ​​this site was held in 2021. The ratio of the value of Russian business of Softline to the value of business in other countries of presence is estimated at 1:3.

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At the end of fiscal year 2022 (ends March 31, 2022), Softline’s turnover in Russia amounted to $1.13 billion, or 51% of the company’s total turnover. Revenue in Russia was $982 million, half of the company’s total revenue.

Adjusted EBITDA (earnings before taxes, interest on loans and depreciation) in Russia amounted to $48.7 million, or 72% of the value of this indicator in all countries of presence. Profit in Russia amounted to $16.3 million – 150% of the company’s total profit in all countries. This ratio is related to the losses incurred by Softline at its headquarters level and in the EMEA regions (Europe, Middle East and Africa).

Igor Korolev

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