Russian company Softline has acquired Brazilian software reseller Compusoftware as part of a wider strategy to grow in Latin American markets.
The transaction amount is undisclosed, but it is reported that the Russian company paid approximately R$40m ($9.7m) for the Brazilian firm, which had been purchased in 2011 by its previous owner, Brazilian data services group Globalweb, for about R$15m ($3.6m).
It is understood that Globalweb's failure to secure financing to expand Compusoftware in 2014, coupled with the economic downturn in Brazil have made the reseller business less interesting. With the disposal of Compusoftware, Globalweb will now continue to focus on its core activities of outsourcing, systems integration and information security.
A Microsoft partner, Softline is looking to widen its footprint in Brazil, where it started operations some 15 months ago. The company has also been strengthening its ties with Chinese manufacturer Huawei, as well as Oracle, Adobe and Autodesk, according to the company's Latin America sales and marketing director, Gustavo Capart.
Capart told Brazilian newspaper Valor that despite the current uncertainty around the Brazilian market, the Russian company continues to drive its international expansion programme. "Emerging countries go through cycles. Brazil is going through an uncertain phase, but has a strong base," he added.
The Russian company is looking to launch its IPO within the next five years and growth in Latin America is core to that plan. Softline is now looking to expand in other Latin countries such as Mexico, also via acquisitions.
Together, Softline and Compusoftware will have a workforce of approximately Brazil-based 100 staff and a combined client portfolio of 600 clients and an annual revenue of about R$600m ($146m), with Compusoftware representing about 40 percent of that total.