U.S. private equity firm OpenGate Capital has bought out the Mexican and Brazilian operations of European technology firm Damovo, thus expanding its IT services business across Latin America.
The acquisition adds 400 employees and nearly US$100 million in revenue to OpenGate. This is the firm’s third major acquisition after it bought the Latin American operations of Getronics in 2012 and Sopho in 2010.
Damovo’s IP/UC telephony-focused solutions, according to OpenGate, complement Getronics and Sopho’s portfolio of integrated ICT services. Getronics, an IT solutions integrator, has more than 2,500 employees and has operations in several Latin American countries including Brazil, Mexico, Colombia and Venezuela.
The “acquisition of Damovo Brazil and Mexico demonstrates our commitment and enthusiasm for the Latin America market,” stated OpenGate chief executive Andrew Nikou.
The combined businesses in Latin America, OpenGate says, can now generate more than US$300 million in revenue. “With the addition of Damovo Brazil and Mexico operations, we are now able to leverage the strengths of our Latin American portfolio throughout the region.”
Damovo’s Latin American units are said to be serving 1,180 contracts, with their clients including several regional banks and government agencies.
“We recognized the tremendous accretive value that Damovo would add, given the synergies and strengths of the combined businesses. Through this acquisition we have created a powerful, multi-faceted platform for providing best in class IT services and products for the entire Latin American market, ” said OpenGate Capital’s Partner, Sebastien Kiekert Le Moult.
The deal means that Damovo’s operations are now limited to the Europen continent, where it has a presence in the Netherlands, the UK, Switzerland, Poland, Ireland, Belgium, and Germany.