Analysing RS2’s strategy for venture into US market
Following the annual general meeting held on 19th June 2018, Mr Edward Rizzo from Rizzo, Farrugia & Co. (Stockbrokers) Ltd, analysed RS2 Software plc’s approach to penetrate the US market. The excerpts below are taken from Mr Rizzo’s article published in the Times of Malta on 28th June 2018; for the full article please click here.
“RS2 Software plc held its annual general meeting last week for the tenth time and apart from speeches from chairman Mario Schembri and CEO Radi El Haj, another two speakers addressed shareholders, namely Daniela Mielke and Raša Karapandža.”
“The senior executives informed shareholders that the company’s board of directors have agreed on an investment programme to recruit a number of internationally recognised industry specialists mainly in the areas of sales and business development in order to expedite the entry into selected geographic regions.”
“RS2 had been earmarking penetration into the US market for several years following the company’s acquisition of a 26 per cent stake in Transworks LLC in 2009 and the purchase of an additional 38.2 per cent shareholding in 2014. Transworks was then renamed RS2 Software LLC and on February 16, 2018, a new company called RS2 Software Inc was formed in the US and was subsequently merged with RS2 Software LLC on 28 March 2018.”
“The strategy will revolve around providing outsourcing and the acquisition of services to Independent Sales Organisations (ISO’s), banks and merchants. Ms Mielke also explained that RS2 will not only be working with existing distribution channels that traditional players … are using to compete with new entrants but they are also in the process of developing partnerships with leading financial players in the US market.”