Softline acquires Russian division of Insight – one of the largest Microsoft partners in the World.

Softline
Softline

Both Softline and Inight are involved in the supply of IT products for business outsourcing, and system integration. The Russian team of Insight is headed by Karina Gabelko. As per her words, “Insight technology solutions” will be renamed to “Softline enterprise solutions”, Gabelko will remain its CEO.

Member of the Board of Directors of Softline Oleg Zhelezko says that both companies, being global companies and partners of such IT vendors as Microsoft, Oracle, HP, specialize in different types of markets. Insight works in the developed countries (USA, EU, etc.), and Softline in developing countries (Russia, CIS, Latin America, India).

Insight – largest global partner of Microsoft. In Russia Insight services 250 customers. It is mainly large Russian companies and the Russian offices of transnational corporations, which are interested to obtain IT products and services in all regions from a single provider.

Softline services more than a thousand Microsoft corporate customers with an annual contract.

Insight and Softline will remain strategic partners on a global level and help each other to sell solutions in different markets”, says Wolfgang Ebermann, President of Insight EMEA.

Softline is ranked fourth in the rating of largest IT companies of Russia in 2016 in the industry ratings by publication CNews. Its revenues in 2016 in just Russia amounted to 673.6 million USD with 1.5 billion USD of global revenues (EBITDA 10% of revenues). The Russian division of the Insight was created in 2008. According to Gabelko, its turnover in 2016 amounted to 3 billion RUB. Microsoft has seven partners-integrators in Russia. Russian Insight has 10% of the market, says Gabelko.

Sale of a company like Insight in current market conditions can be estimated at 3-4 EBITDA. The profit of “Insight technology solutions” before tax, according to SPARK data, in 2015 amounted to 88,943 million rubles and therefore Insight could be worth 266,8–355,6 mln (i.e. $4.5–6 million). This scenario can be true if the new owners will keep the team and the company has no significant financial problems hidden from the outside observer, otherwise the company will worth $1 million at most.

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