Russian microelectronics manufacturer Element increased its ownership stake to 90% in blockchain software and ERP systems developer JSC NIPS. Before the deal, he owned 10% of the company. He bought a majority stake in Rostec, Vedomosti learned.
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The Novosibirsk Institute of Software Systems (NIPS) specializes in the development and implementation of ERP systems, system-wide software, products based on blockchain technologies, as well as research and development (R&D) for development of software.
The company last published financial results three years ago. In 2021, its revenue fell from 179.1 million to 106.2 million with a net loss of 28.1 million rubles.
- The Element company was born in 2019 on the basis of the assets of AFK Sistema (50.1%) and Rostec (49%). The company brings together about 20 organizations. According to Element’s own data, it is the only full-cycle manufacturer in the Russian Federation of a wide range of RFID tags for mass product groups.
- Element plans to launch an IPO at the end of 2024. The company hopes to attract 10-15 billion rubles for the development of a large investment program.
United Investors managing partner Alexander Gorny believes that, most likely, the transaction was valued at a nominal amount. If the deal were non-cash and Rostec simply increased its contribution to Element, then its stake in the joint venture would increase. The amount of the transaction could be minimal and not market, a financial analyst from one of the large Russian banks agreed.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
