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The M&A Watch: IT Services and Software in Latin America – October 2021

By Emily Halstenberg | October 28, 2021

M&A WATCH: LATIN AMERICA – OCT. 2021

Our monthly M&A Watch spotlights deals in the Information Technology industry throughout Latin America.

Latin America’s technology boom is attracting investor activity at an unprecedented level. VC capital fueled the start-up ecosystem while strategics extended and intensified their presence in the region through acquisitions.

During the first half of October, M&A activity accelerated in Latin America, leading to more transactions in the first two weeks of October than during the entire month of September. The dominating countries in terms of deal count continue to be Brazil and Mexico, followed by Argentina, Colombia, Peru, Chile, and Uruguay.

The most active verticals in the Tech sector are FinTech, Big Data, and E-commerce. The flourishing Tech ecosystem facilitates disruption across many sectors: FinTech services such as online payment platforms helped e-commerce companies outgrow the brick-and-mortar Retail industry, and AI data capabilities revolutionized the agricultural space by increasing efficiency.

Now investors look at Latin America beyond its nearshore capabilities and more for opportunities in deep tech and sustainability.

 ​​

Overactive Acquired by Perficient | Uruguay

  • Perficient, an IT consulting firm with a global reach, acquired Overactive, an IT consulting services provider. Overactive is an Uruguay-based digital native company with more than 700 employees. The company offers services in software engineering, data science, experience design, and mobile services.
  • Perficient is a publicly traded company with a rich portfolio of services, including information technology, consulting services that focus on digital experience, business optimization, and IT solutions. ​​​​​​
  • ​​​​​The acquisition of Overactive helps Perficient strengthen its nearshore services in Latin America and further expand in the region.

Jüsto Acquired Freshmart | Peru

  • Jüsto, an online supermarket operator based in Mexico, acquired Freshmart, a food delivery service. Freshmart offers groceries delivery services to customers across Peru.
  • Jüsto is one of the most prominent unicorns in Latin America. The company delivers fresh products at a competitive price to people in Mexico. The acquisition of Freshmart helps Jüsto expand its addressable market to Peru after the growth fueled by the lockdowns amid the pandemic.

Atix Labs Acquired by Globant | Argentina

  • Globant, a global software technology developer, acquired Atix Labs, a blockchain implementation provider. Atix Labs is a blockchain operator that offers decentralized solutions and development services. The company, headquartered in Argentina, serves world-leading clients such as Nestle, Honda, and Unicef.
  • Gloabant is a publicly traded software developer. Globant offers a wide variety of solutions that are powered by native digital technology. According to industry analysts, the blockchain industry is expected to grow at an accelerated rate by 2025. The acquisition of Atix Labs helps Globant expand its offering in the blockchain market and positions the company strategically amid new opportunities in the Blockchain space.

Consultoría Organizaciónal Acquired by Indra Sistemas | Colombia

  • Indra Sistemas, a Spain-based provider of information technology solutions, acquired Consultoría Organizaciónal, a consulting services firm based in Colombia. Consultoría Organizaciónal specializes in SAP solutions that simplify operations and increase efficiency. The company employs 150 professionals and offers services such as talent management, e-commerce, administrative and financial management, staff outsourcing, payroll BPO, and application hosting.
  • Indra Sistemas is a global provider of analytics, cloud computing, enterprise resource planning, networks and communications, electoral processes, bus technology, subway technology, and sustainability solutions. The acquisition of Consultoría Organizaciónal will extend Indra’s SAP capabilities.

Beso Acquired by LLYC | Mexico

  • LLYC, global communications and public affairs consulting firm, acquired Beso, a Mexican-based creative firm. Beso combines creative content and data analytics through its digital marketing teams and data research. The company, founded in 2021, employs more than 140 people.
  • LLYC acquired 75% of the company for $8.4 million, a price subject to Beso’s financial performance through 2024. LLYC is a Spanish publicly traded company as of July 2021. The company offers services such as digital marketing and consulting.
  • The acquisition of Beso follows LLYC’s strategy of growing its data analytics services. Prior to this transaction, LLYC acquired digital marketing firm Apache and advertising agency China in 2021.

Bain Capital Tech Opportunities Invests in Bionexo | Brazil

  • Bain Capital Tech Opportunities made a BRL 450 million growth investment in Brazilian company Bionexo, leading to a BRL 1.1 billion valuation. Bionexo offers digital applications for managing healthcare processes and an integrated suite of cloud software and marketplace technology. Through its capabilities, the company improves efficiency for both the hospitals and the suppliers. In addition, the capital will help Bionexo expand its SaaS platforms and pursue new growth opportunities.
  • Bain Capital Tech Opportunities is the growth investment arm of Bain Capital with a focus on disruptive technologies across industries such as application software, infrastructure, and security, FinTech and payments, healthcare IT and internet, and digital media.

Advent International and Softbank Invests in Merama | Mexico

  • Advent International and Softbank made US $225 million in Series B funding in Mexican start-up Merama. Merama is an e-commerce brand builder that invests in businesses across LATAM. The investment comes just five months after Mermara raised Series A from Monashees, Valor Capital, Balderton Capital, and MAYA Capital. The new round drives the valuation of Merama to US $850 million, after the company secures the largest Series B round in Latin America to date.​​​​​​

CPP Investments Invests in Joint Venture with Votorantim | Brazil

  • CPP Investments, a Canadian investment firm, and Brazilian investment manager Votorantim Group joined forces to consolidate several Brazilian energy assets to create a new combined company. The strategy is to list the new joint venture on the B3 Stock Exchange. CPP Investments CP will commit US $270 million in the business, while the Votorantim Energia will incorporate its energy trading company Votene.

About 7 Mile Advisors

7MA provides specialized Investment Banking & Advisory Services to the professional service firms in the Consumer Products & Retail industries. We help our clients determine the right strategic partners for their businesses, transition ownership, raise capital, grow through acquisitions, and evaluate new markets. We advise our clients on M&A and private capital transactions, and provide unique market insights. Our team brings experience and energy to all of our engagements, with a focus on helping our clients navigate a changing marketplace.

To learn more about how 7 Mile Advisors can help you evaluate and execute on strategic M&A or private capital alternatives for your business, please visit our website www.7mileadvisors.com.

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