Globant to leverage capital for 3 acquisitions in 2011

Friday, April 1, 2011

Argentine IT solutions and outsourcing services provider Globant is in advanced stages of acquisition negotiations, and expects to purchase at least three companies by year's end, Globant CTO Guibert Englebienne told BNamericas.

Last month, Globant secured US$15mn in new investments from stakeholders Riverwood Capital and FTV Capital. The Argentine firm will channel funds to both organic growth and planned acquisitions in Latin America and the US, according to a statement released at that time.

Englebienne said Globant's acquisition focus is aimed at strengthening its technological expertise and client base in a variety of areas, including mobile solutions, social networks and video games.

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"We're looking in Argentina, Brazil, Colombia and Uruguay. Elsewhere, we're looking at companies in the US and Europe," he said. "I expect that we are going to make about three acquisitions this year.... We are looking to purchase companies with total sales of roughly US$12mn."

On the organic side, this month Globant will be opening offices in Buenos Aires and Rosario in Argentina, as well as Montevideo and Bogotá. The company is considering new installations in northwestern Argentina and is also keen on organic growth, particularly in Peru and Brazil.

Local and international press reports have speculated about a possible IPO by Globant, but the executive said such a decision is still a ways off.

"We're talking with investment banks and other companies that have gone public to hear about their experiences," he said. "We are talking with companies similar to ours that are public. This will determine our readiness and when we will do it. We have to analyze market conditions."

The company is not actively seeking additional sources of financing at this time, Englebienne added.

Globant employs 2,000 IT professionals in eight delivery centers across Latin America, in addition to commercial offices in the US and the UK. The firm delivers offshore IT outsourcing services including internet marketing, IT security and software development.