Argentinean IT consultant Globant has acquired its regional rival Grupo Assa (GA) in a deal that will bolster its digital transformation offerings besides widening its footprints across Latin America.
With more than 1,100 technology professionals, GA is known as a digital transformation consultant, and its clients include the likes of Johnson & Johnson, Honda, DHL, Equifax, PepsiCo, and DirecTV.
GA is headquartered in Miami, but most of its delivery centers are spread across Agentina, Brazil, Chile, Colombia, Mexico, and Spain. Globant has not disclosed the financial details of the deal, but regional media outlets put the price tag at US$74 million.
The acquisition, Globant says, will broaden its expertise in life sciences, CPG, manufacturing, and logistics. GA’s offerings include cloud computing, one of the technology services enjoying high demand amid the COVID-19 pandemic.
“The world is changing and many industries are facing an amazing opportunity. GA’s portfolio will deepen our service offering to help our clients in their transformation journey,” commented Martin Migoya, Globant’s CEO and co-founder in a press release.
Founded around 30 years ago, GA often talked about widening its footprints beyond Latin America. In a 2017 interview with Nearshore Americas, the company’s Sales Manager, Diego Lozano, made bare of an ambition to take a dual-shore approach.
“Our Latin American footprint is strong, giving us the flexibility to react quickly and creating a shield for global clients. Our asset in this IT industry is talent, which can change direction quickly, unlike fixed assets. Our approach for global accounts is dual-shore, so we are trying to increase US participation.”
As for the deal, the entire negotiation took place online, as they could not hold face-to-face talks due to the pandemic, according to Martín Umaran, Globant’s co-founder. “The whole process was done virtually,” Umaran said, adding that all of GA’s staff will join Globant.
This is Globant’s 14th acquisition in the past 12 years, with Avanxo and Belatrix Software being among its major picks.