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Spanish systems integrator Indra has reached an agreement to acquire 100% of the shares of Brazilian IT company Politec for a total 224mn reais (US$145mn), the former said in a statement.
With this operation, Indra's international business will represent 47% of the company's total sales, compared to the current 40%. Brazil will be Indra's second largest revenue generating country (10% of global revenues), turning Latin America (22%) into the first regional market within Indra's international activities, the company said.
The sale will be in two tranches, with 93.43% of the capital - consisting of shares owned by the founding partners (84.66% of titles) and Mitsubishi Corporation (8.77%) - to be acquired first for 219mn reais, payable in 2014. The acquisition of the remaining 6.57% minority shareholder stake will be for 4.5mn reais in cash, payable at the closing of the transaction.
According to Indra, the acquisition will allow it to grow in the security and defense, transport and traffic markets and to generate significant revenue synergies, from cross selling Indra's solutions portfolio through Politec's sales network and client base.
In Brazil, Indra will have, after the purchase, pro-forma revenues of 557mn reais and a diversified position in the main vertical markets, including telecoms, public administration, financial services, energy and industry.
Politec was founded 40 years ago and serves the energy, industry, financial services and public administration sectors, reaching sales of 400mn reais in 2010 and employing 5,000 professionals with a broad sales force network across most Brazilian states.
The acquisition is expected to close before September 30.