Latin American IT consultant TOTVS has acquired a regional SaaS (software-as-a-service) vendor RD Station for US$ 32.5 million, gaining unprecedented control over Brazil’s software services industry.
Founded in 2011, RD has over 25,000 customers in 20 countries and runs offices in São Paulo, San Francisco, Bogotá, and Mexico City. The Saas vendor is estimated to make around US$37 million in revenue this year.
“This acquisition is the largest private software M&A transaction in the country,” claimed TOTVS’ CEO Dennis Herszkowicz.
A large majority of RD’s clients are small and medium entrepreneurs, who use the SaaS platform to gain control of their customer relationship.
It has partnered with more than 2,000 vendors across the country, including digital marketing agencies, which represent almost 40% of its income.
The acquisition will no doubt widen TOTVS’ customer base in the region, enabling it to further tighten its control on Brazil’s enterprise software market.
Saas is not a new offering in TOTVS’ portfolio. The company started providing Saas in 2016 and today it accounts for more than 60% of its new business revenue.
This is TOTVS’ second acquisition in the past four months. In December last year, it purchased Tail Target, a data analytics firm based in Sao Paulo.