Softline plans to expand to "friendly countries" including via M&A

MOSCOW. Sept 1 (Interfax) - Softline is considering the possibility of entering the markets of friendly countries, including by acquiring assets, Alexandra Melnikova, the company's Director of Investor Relations, said.

"We have a fairly aggressive goal of entering the markets of friendly countries. We are also looking at interesting acquisition targets there. We are also looking at the possibility of bringing local products to the markets of friendly countries, and helping our customers enter these markets. But we are also looking at the possible provision of services in the markets of friendly countries, for example, custom development," Melnikova said during a broadcast on the My Investments Telegram channel.

CEO Vladimir Lavrov added that a strategy is now being formed to enter countries where "there are no major barriers for the work of a Russian company or a company with Russian roots."

The company is looking at the countries of the CIS, the Middle East, Africa and several countries of Southeast Asia, the CEO of Softline said.

In the event the company goes abroad, it will not compete with Noventiq (the international division of what was Softline Holding, Lavrov said.

"In fact, we [Softline and Noventiq] are somewhat divided in terms of product format. And what we agreed on and where there is business logic: Noventiq is moving with global vendors, with global products, and this is one of its key drivers. In addition, we will still proceed from Russian, or our friendly systems and products, which are mainly from Asia - China, India. Therefore, here, most likely, we will share technologically," the head of Softline said.

Softline is a provider of IT solutions, the parent consolidating company for Russian assets that were previously part of the global group Softline Holding PLC. In the summer of 2022, Softline Holding divided its business into Russian and international parts. As a result, the Russian business with the Softline holding company became independent from the international perimeter. The international business has continued to operate under the Noventiq brand.

The company plans to enter the MOEX. Trading is expected to begin on September 26.