The economic unit of the Chilean district attorney's office, FNE, has decided to investigate the possible effects of local IT systems integrator Sonda's offer to purchase the entirety of fellow tech holding company Quintec, paper Estrategia reported.
Sonda offered 206 pesos a share for 100% of Quintec's 157mn shares. If the purchase goes through, the total offer would reach 32.4bn pesos (US$68.5mn).
Sonda is one of the biggest IT companies in Latin America, and operations in Chile represent 45% of total revenues. The company also operates in Brazil, Chile, Mexico, Argentina and Peru.
Quintec, on the other hand, generates 75% of its revenues in Chile, and is the official wholesaler of Apple products in the local market, also operating the MacOnline stores. Quintec's presence includes Argentina, Brazil, Peru and Colombia.
Chilean ICT association Acti was quoted as saying that the transaction "would not represent a market concentration risk. More than 1,000 domestic and foreign companies make up the Chilean market. It is a highly fragmented and competitive industry that billed US$3bn in 2010."
The public offer for Quintec is actually Sonda's second attempt at buying its competitor, after a 2009 offer failed.
Financial services firm Celfin Capital has maintained its buy recommendation for Sonda, based on organic growth at CAGR of 12% over the next three years and M&A growth, Celfin said in a report.
Sonda is a diversified regional player with a stable revenue and cash flow, so it can easily raise capital to fund expansion, the report reads.
Additionally, the consolidation of acquisitions should allow Sonda to cross-sell to new clients.
Celfin believes the offer has a high probability of success, since some 37% of Quintec stockholders have now formally expressed interest in accepting the bid.