Outsourced product development services provider Encora has acquired Daitan, an American software engineering firm, saying the acquisition will position it to “tap into the tech talent pool” across Latin America, and Brazil in particular.
Headquartered in San Ramon, California, Daitan runs an R&D center in British Columbia and an engineering center in Campinas, Brazil.
It employs around 600 engineers, with a majority of them based out of Brazil.
Daitan recorded a staggering 157% growth between 2016 and 2019 when it reported US$34 million in annual revenue.
Earlier this year, The Financial Times ranked Daitan among the fastest-growing companies in the Americas.
“Adding Daitan’s depth of services and domain expertise strengthens our offerings in our focus industries and broadens our LATAM footprint with top-tier talent in Brazil,” says Venu Raghavan, CEO, Encora.
The acquisition will no doubt bolster Encora’s operation across Latin America, where it runs delivery centers in countries including Mexico, Costa Rica, Peru, Bolivia, and Colombia.
Encora did not disclose how much it paid for the acquisition. Analysts believe that it could have used the US$200 million it raised from the Warburg Pincus fund in August 2019.