Russian IT distributor Softline has agreed to purchase 63.38% of the German IT company Softline AG of the same name.
According to Igor Borovikov, Chairman of the Board Europe, the deal is planned to be closed by March 31, 2021, and based on the market capitalisation, its amount could be about €7.6 million.
Despite the same names, the Russian and German companies were not connected before. Softline AG was founded in 1983 and is headquartered in Germany. The company also operates in the markets of the Netherlands, Austria, Switzerland, Belgium and the United Kingdom.
As the managing partner of Leta Capital, Alexander Chachava, explained to the publication, the purchase of a German company has two values: a name and historically established contracts, he believes. The acquisition of the company of the same name removes legal risks and solves the issue of branding in the Western European market, in addition, Softline AG already has contracts, which is important for a distributor and allows it to become a point of entry into a new territory.