Sonda to seek organic growth strategy in Chile after Quintec acquisition

- Tuesday, August 30, 2011

Sonda to seek organic growth strategy in Chile after Quintec acquisition

Once it has completed the acquisition of fellow tech holding company Quintec, Chilean systems integrator Sonda sees no further acquisition possibilities in the country but will continue to look beyond Chile, Sonda president Andrés Navarro was quoted as saying by local daily La Tercera.

Earlier this month, Sonda offered 206 pesos a share for 100% of Quintec's 157mn shares. If purchase is successful, the total offer would reach 32.4bn pesos (US$68.5mn).

"After this transaction our offering would be quite complete, and the idea is to continue with an organic growth strategy," Navarro said.

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Until now, the company has been able to grow at twice the country's GDP rate, at around 14%. "Once you surpass a 20% market share, it's difficult to double the GDP growth rate. It's easier and cheaper to do it in Brazil, where our market share is less than 10%," he said.

In Brazil, meanwhile, the plan is to grow at double-digit rates.

Navarro said the company is planning two more purchases in Latin America by the end of 2012, though the market is competitive and many other companies have the same goal.

The company is aiming for Venezuela, where Navarro will be visiting shortly to get to know the market and the possibilities it offers.

The company still has US$110mn of the US$250mn it has set aside for its 2010-12 investment plan.

But there are no big companies on the radar at the moment, "and my ambition has always been to acquire a big company, merge both entities and control at least 30%," Navarro said.