Rostelecom buys majority stake in digital transformation leader BFT Holding

Rostelecom buys majority stake in digital transformation leader BFT Holding

(PRESS RELEASE) MOSCOW, 25-Oct-2021 — /EuropaWire/ — Rostelecom PJSC (MOEX – RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, has announced the acquisition of a 50.01% stake in BFT Holding, a leading supplier of turnkey solutions for development and integration of IT systems across Russia’s public sector. The total value of the deal will not exceed RUB 1.650 billion (~ EUR 20 million). The deal will be completed in three tranches before 2023 as it is subject to certain conditions to be fulfilled by the parties.

The deal will strengthen Rostelecom’s leading position as the enabler of digital transformation in the public sector. BFT Holding will become part of the Rostelecom Group as its subsidiary, keeping key staff and competences unchanged.

BFT Group is Russia’s leading IT company and developer of software and project B2G and B2B solutions covering a significant national market share of 80 municipal authorities. The product portfolio includes software solutions in critical state sectors such as finance and procurement, property and assets management, public services, social management, and employment. This range is complemented by leading solutions for businesses and a strong consultancy capability.

In 2020, BFT Holding posted a revenue of RUB 3.4 billion.

Mikhail Oseevskiy, President of Rostelecom: “The acquisition of BFT is one of those targeted M&A deals that help strengthen the ecosystem of our public products as we continue to remain a strategic partner to the State. The deal will help us expand Rostelecom’s business cluster of B2G digital services and solutions into new segments of public management and improve our capability to deliver state projects of any complexity and size. It will also contribute to our internal consolidation of digital B2G competences at both national and regional levels, and provide further impetus to the breakthrough development of one of our five digital clusters as part of our ambitious Strategy 2025.”

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SOURCE: Rostelecom PJSC