Page 121 - RusRPTFeb22

We welcome the acquisitions, as Softline is deploying cash that it raised during the recent IPO to grow its business and to give a solid impetus to the services part of its business.
According to Softline, SoftClub is a specialist in financial technology. It develops integrated solutions for banks, e-commerce, and stock exchanges in Central and Eastern Europe. SoftClub's suite of products covers 85% of the modern bank application landscape . The company has developed more than 50 of its own software products and over 15 products for core-banking systems. Some 62mn accounts are processed through SoftClub's products and more than 50,000 bank employees in 21 countries now work on SoftClub's software.
SoftClub generated about USD 11mn in adjusted EBITDA in the twelve months ending 30 June 2021, according to Softline. This compares with Softline's adjusted EBITDA of about USD 61mn for the period.
Softline also said that it had acquired the majority stake in SoftClub at around its target multiple (the company has previously said that it targets an EV/EBITDA multiple of around 5x in its M&A deals).This implies that the entire company might have been valued at over USD 50mn, with Softline's contribution being likely proportionate to the stake acquired. SoftClub employs about 950 software engineers.
MMTR Technology is a specialist in software development and application engineering, employing over 440 software engineers, with a focus on business process automation and quality assurance testing, according to Softline. MMTR Technology is particularly renowned for its expertise in developing complex high-loaded systems, automated testing, business and data analytics, and data warehouses and marts. Its offering also includes quality assurance services and out-staffing tools. In addition, the company is known for its training laboratory, which is geared towards upskilling English-speaking testers and developers.
No details of the deal to acquire MMTR Technology have been disclosed.
According to Softline, following the two acquisitions, if will have almost 2,500 software engineers, or about half of its near-term target of 5,000.
Irkutskenergosbyt, the main utility company in Irkutsk, Siberia, is looking to collect almost $800,000 from owners of crypto farms that have allegedly caused a spike in local electricity consumption. In total, the company has filed 137 lawsuits against customers who set up mining facilities in basements and garages. The company says these home miners are engaged in entrepreneurial activities while paying for their electricity at the
121 RUSSIA Country Report February 2022 www.intellinews.com