(Bloomberg) -- Softline, an IT services provider founded by Russian businessman Igor Borovikov, bought the licensing business of Squalio to expand in Europe before a planned initial public offering this fall.

Squalio is a Microsoft Corp. partner in eastern Europe and the Baltics, and its licensing business represented 98% of the company’s revenue last year, Softline said in a statement Friday. The terms were not disclosed.

The deal comes as Softline is preparing to go public on exchanges in London and Moscow this fall, according to people familiar with the plans who declined to comment because the information is confidential. 

A spokesperson for Softline declined to comment on plans for an initial public offering.

Softline management said in May they were exploring a range of options, including an IPO, to help with global expansion. In July, the company was said to select JPMorgan Chase & Co. and Credit Suisse Group AG to work on the share sale.

Borovikov founded Softline in 1993 in Russia, which remains its biggest market. The company provides IT services and cybersecurity to industries from edtech to retail and has since relocated to London. International markets accounted for 45% of its nearly $2 billion in revenue in 2020, according to the statement.

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