In preparation for IPO and international expansion, Russian Softline bought Brazilian Compusoftware
Russian IT-company Softline announced the purchase of Brazilian Compusoftware . The latter deals with distribution and IT services.
Softline will pay 60% of the amount in cash, and the remaining 40% in shares of the parent company, said Softline Investment Director Elena Volotovskaya. The Russian company plans to go IPO, and the owners of Compusoftware will have the right to sell their shares at the time of placement, she explained.
Favorable outcome of the IPO will benefit not only the above mentioned IT companies, but also Sovcombank , which gave Softline a loan of 4 billion rubles just for buying a company in Latin America and Southeast Asia. This is the so-called mezzanine loan, in which the bank provides debt financing and at the same time acquires an option for the borrower's shares. “The mezzanine loan was chosen as the optimal form of financing for both parties. From the point of view of Sovcombank, this format ensures the right balance of risk and interest in the growth of the company's capitalization, the partners report in a joint press release.
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“Funding has been received for a specific task - rapid growth, which may be due to the purchase of assets in strategic regions for the company,” Softline said. In these regions, Softline already has its representative offices. The founder and chairman of the board of directors of the company, Igor Borovikov, believes that the collection of assets will make Softline a "blue chip" in the eyes of investors.
Representatives of Softline told CNews that the company is already negotiating with international investors about the possibility of another takeover.
For the purchase of Compusoftware, the Russian company paid off with Sovcombank. The deal was closed at the end of December. Ms. Volotovskaya added that the cash payment for the transaction will take place in two stages. Softline will transfer the bulk of the money in 2017, based on EBITDA for 2016. She also told Vedomosti that the partners are making settlements in the Brazilian real and for the future payment, Softline is considering the possibility of hedging currency risks.
CNews admits that Softline chose a Brazilian company, given the uncertain economic situation of Brazilian markets in general, which could have affected the purchase price.
According to the plan of Compusoftware, in March 2016 its revenue should be $ 65 million. The company's CEO, Jose Azhevedo, believes that the merger should double Softline's revenue in Latin America in 2016–2017. According to his calculations, revenue should grow to $ 206 million.
Compusoftware is the fifth largest distributor in Brazil and can cost anywhere from $ 25 to $ 35 million, estimates Ruben Israelyan, director of Ernst & Young in the CIS for mergers and acquisitions. In Russia or Brazil, such a company can cost from 5-6 EBITDA, while a similar company in a developed country can cost from 10 to 12 EBITDA. However, the multiplier depends on the share of cloud and other IT services in the company's revenue structure, and may be lower for a net distributor, Israelian adds.
Softline is engaged in the delivery of IT-products, outsourcing and system integration. According to the main owner of Softline Igor Borovikov, in 2015, Softline turnover approached $ 1 billion. Now Softline’s revenue structure for sales in the CIS and non-CIS countries accounts for 40%, and 60% for Russia, he estimates. On the eve of the IPO, the revenue structure will be divided into three equal parts: Russia, Latin America and Asia, Borovikov hopes.
Absorption of Compusoftware will allow Softline to strengthen its position as a Microsoft supplier in Latin America. However, the company is not limited to products of the American vendor, says Borovikov. At the same time, Softline will promote Russian technologies in the BRICS countries.
Research company Gartner estimated the Brazilian corporate software market in 2015 at $ 2.47 billion. In 2016, it will grow to $ 2.8 billion, and in 2019 it will reach $ 4.1 billion, analysts say Gartner.
Softline will pay 60% of the amount in cash, and the remaining 40% in shares of the parent company, said Softline Investment Director Elena Volotovskaya. The Russian company plans to go IPO, and the owners of Compusoftware will have the right to sell their shares at the time of placement, she explained.
Favorable outcome of the IPO will benefit not only the above mentioned IT companies, but also Sovcombank , which gave Softline a loan of 4 billion rubles just for buying a company in Latin America and Southeast Asia. This is the so-called mezzanine loan, in which the bank provides debt financing and at the same time acquires an option for the borrower's shares. “The mezzanine loan was chosen as the optimal form of financing for both parties. From the point of view of Sovcombank, this format ensures the right balance of risk and interest in the growth of the company's capitalization, the partners report in a joint press release.
')
“Funding has been received for a specific task - rapid growth, which may be due to the purchase of assets in strategic regions for the company,” Softline said. In these regions, Softline already has its representative offices. The founder and chairman of the board of directors of the company, Igor Borovikov, believes that the collection of assets will make Softline a "blue chip" in the eyes of investors.
Representatives of Softline told CNews that the company is already negotiating with international investors about the possibility of another takeover.
For the purchase of Compusoftware, the Russian company paid off with Sovcombank. The deal was closed at the end of December. Ms. Volotovskaya added that the cash payment for the transaction will take place in two stages. Softline will transfer the bulk of the money in 2017, based on EBITDA for 2016. She also told Vedomosti that the partners are making settlements in the Brazilian real and for the future payment, Softline is considering the possibility of hedging currency risks.
CNews admits that Softline chose a Brazilian company, given the uncertain economic situation of Brazilian markets in general, which could have affected the purchase price.
According to the plan of Compusoftware, in March 2016 its revenue should be $ 65 million. The company's CEO, Jose Azhevedo, believes that the merger should double Softline's revenue in Latin America in 2016–2017. According to his calculations, revenue should grow to $ 206 million.
Compusoftware is the fifth largest distributor in Brazil and can cost anywhere from $ 25 to $ 35 million, estimates Ruben Israelyan, director of Ernst & Young in the CIS for mergers and acquisitions. In Russia or Brazil, such a company can cost from 5-6 EBITDA, while a similar company in a developed country can cost from 10 to 12 EBITDA. However, the multiplier depends on the share of cloud and other IT services in the company's revenue structure, and may be lower for a net distributor, Israelian adds.
Softline is engaged in the delivery of IT-products, outsourcing and system integration. According to the main owner of Softline Igor Borovikov, in 2015, Softline turnover approached $ 1 billion. Now Softline’s revenue structure for sales in the CIS and non-CIS countries accounts for 40%, and 60% for Russia, he estimates. On the eve of the IPO, the revenue structure will be divided into three equal parts: Russia, Latin America and Asia, Borovikov hopes.
Absorption of Compusoftware will allow Softline to strengthen its position as a Microsoft supplier in Latin America. However, the company is not limited to products of the American vendor, says Borovikov. At the same time, Softline will promote Russian technologies in the BRICS countries.
Research company Gartner estimated the Brazilian corporate software market in 2015 at $ 2.47 billion. In 2016, it will grow to $ 2.8 billion, and in 2019 it will reach $ 4.1 billion, analysts say Gartner.
Source: https://habr.com/ru/post/297950/
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