Globant advances in its expansion in Brazil, acquires Iteris, and appoints a new Executive Director
31 Jan 2024
- The company announces the acquisition of Iteris, a consultancy specialized in Digital Transformation that provides services to clients such as Nubank, Globo, C&A, and Reckitt.
- Additionally, Carlos Morais has been appointed as the new Executive Director to lead the national operation, considered crucial for Latin America.
January 2024- Globant, a digital-native company focused on reinventing businesses through innovative technological solutions, confirms its expansion strategy in Brazil at the beginning of the year with the acquisition of Iteris. Iteris is a Brazilian business and technology consultancy specializing in Digital Transformation, boasting 14 years of experience in the local market.
"We are excited to welcome the Iteris team to the Globant family. With this acquisition, we are taking significant steps in Brazil because we believe in the potential of this market. This new phase entails substantial growth for our operations in the country, reaffirming our commitment to the region and its technological landscape. We will continue to offer a portfolio of top-notch services and products, constantly reinventing businesses," affirms Martín Migoya, co-founder and CEO of Globant.
According to Ignacio Iglesias, Chief Business Officer for Latin America at Globant, “Brazil is one of Globant's main investments in Latin America, and the company already has a strong presence in key industries. Now, it will be able to enhance local teams with significant Digital Transformation projects and new teams of specialists.”
Iteris will bring added strength to Globant in sectors considered targets by the company for the development of digital projects in Brazil, such as finance, retail, healthcare, and agribusiness. Founded in 2009 in São Paulo, the Iteris team consists of over 600 professionals who develop comprehensive solutions in various areas, including payments and banking, manufacturing, communications, education, retail, and healthcare, for some of the strongest brands in their respective sectors in Brazil, such as Fiserv, PagBank, Julius Baer, Nubank, Nutrien, Globo, C&A, and Reckitt, among others, forming a portfolio of 70 clients collectively.
Over these 14 years, Iteris has been recognized as a leader for three consecutive years in the Agile Application Projects and Application Quality Assurance quadrants of the Next-Gen ADM Services study provided by ISG Provider Lens™.
"This operation reflects the success of the Iteris team over the past 14 years. From the beginning, we have noticed cultural similarities between the companies, which, along with our track record of delivering high-quality services with Iteris and world-class innovative projects provided by Globant, will allow our clients to benefit greatly. We are happy and proud to take this significant step for our company." Marcelo dos Santos, Co-founder and Co-CEO of Iteris.
Expansion Plan in Brazil
In Brazil, for the past ten years, Globant has been consolidating its presence through acquisitions of organizations to expand its participation in the local market. Its history includes acquisitions of operations such as Avanxo, GA, and Nèscara, as well as Genexus. Despite being based in Uruguay, Genexus has a significant operation and important references in the Brazilian territory.
The strategy with this acquisition is to replicate the global scenario of the company in Brazil, which ranks among the top ten brands known for their digital projects. 'We have globally relevant Digital Transformation cases that can also be applied in Brazil, such as the user experience improvement project on the FIFA+ digital platform, as well as cases with a social focus involving the use of artificial intelligence for detecting childhood depression, which we developed for a major laboratory in the United States” explains Carlos Morais, Executive Director of Globant in Brazil.
These acquisitions focused on offering applications in Brazil, which is now complemented by the goal of expanding digital projects. In other words, the entire structure in Brazil is prepared for revenue growth in Digital Transformation through the Innovation Centers that are being created in the country.
In this regard, Globant, which had over 1,000 collaborators in the country until the end of 2023, reinforced its capacity by practically doubling its operation, surpassing the mark of 1,800 professionals in the country.
Recently, the company inaugurated its new Brazilian headquarters located in the South Zone of São Paulo, where it consolidates its Innovation Center in Emerging Technologies, such as artificial intelligence, to strengthen the development of technologies with the aim of impacting businesses and preparing clients worldwide for the future.
Looking Forward Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 of the United States. Expectations related to the businesses of Globant and Iteris may differ from what actually occurs, and consequently, these projections should not be relied upon as predictions of future events. In some cases, these projections can be identified by terms such as "we believe," "may," "estimate," "will continue," "anticipate," "intend," "should," "plan," "expect," "foresee," "potentially," or the negative of these terms or similar expressions. These projections include, without limitation, expectations regarding the anticipated benefits of the acquisition. These projections assume significant risks and uncertainties that may cause actual results to differ materially from those projected. Most of these factors are beyond the control of Globant or Iteris and are difficult to anticipate. Factors that may cause such differences include, but are not limited to: (1) The risk that disruption in the transaction may materially and adversely affect Iteris' business and operations, (2) Globant's ability to realize the anticipated benefits of the acquisition, (3) costs related to the acquisition, (4) Globant's ability to grow Iteris' business successfully, (5) Reactions or potentially adverse changes to business relationships due to the announcement or closing of the acquisition, (6) Globant's ability to retain and hire key employees of Iteris, (7) Changes in applicable regulations or regulations, (8) Demand for Iteris' services along with the possibility that Iteris may be adversely affected by other economic, business, and/or competitive factors, and (9) Other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factor included in any subsequent report on Forms 6-K. Due to this uncertainty, investment decisions should not be made based on these projections. Except as required by law, we assume no obligation to publicly update these projections for any reason after the date of this press release, whether as a result of new information, future events, or any other reason.
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