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January 2022

Market Update: IT Services & Software – LATAM Q4 2021


Latin America’s technology boom will close its 4th quarter with the largest number of deals and a growth of 27% q.o.q. vs previous year.

As vaccinations roll out in LatAm, uncertainty was reduced, attracting a higher volume of investors. The region has proven itself to become a very effective nearshore center for the Americas as far as IT services, but also capable of product development and innovation.

December 2021 presented similar M&A year-over-year when compared to December 2020, with 11 total deals completed vs 10. Transactions took place across several verticals, most notably in Cybersecurity, HealthTech, InsurTech, and E-Commerce. The majority of transactions took place in Brazil, followed by Chile, Mexico, and Argentina.

Despite increased political instability due to political elections in both of the biggest economies coming up in 2022, the LATAM tech space continues to prove its resilience as companies continue to emerge and succeed, providing upside for investors and increasing the region’s overall relevance in the M&A markets.

E-commerce and TMT have been very attractive verticals as digitalization and internet penetration grew in the region. AgTech and FinTech show promise as the region has relevance in crops production worldwide, and still has low bancarization compared to developed economies. Nubank IPO has been one of many FinTech stories and cross-border payments companies that are succeeding in LatAm.

7MA has completed important M&A transactions for companies with outsourced operations and/or delivery centers in Latin America and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact Horacio Yenaropulos, Garth Martin, or Kevin Postigo if you would like to learn more about the landscape in Latin America.

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