Chilean information technology firm Sonda has agreed to acquire the IT services unit of Brazil’s CTIS for an initial $170 million USD. The Chilean company may have to shell out another $36 million if the acquired firm meets ceratin revenue targets. Sao Paulo-based CTIS posted $358 million in annual revenue last year.
The acquisition will see Sonda gain “an excellent” customer base and strengthen its operations in Brasilia and Northeastern Brazil, stated Sonda’s President Mario Pavón Robinson. CTIS has retained its shops that resell technology products.
Sonda was drawn to CTIS by its vast array of delivery centers across Northern Brazil and its long-term service contracts with clients in the energy and financial services sectors, the so-called money-spinning sectors in Latin America’s biggest economy.
CTIS is a good match for Sonda because the Brazilian firm also makes money by providing services in IT outsourcing, application management, IT and infrastructure support. Following the close of the acquisition, Brazilian operations may represent 47% of Sonda’s revenue in Latin America.
The acquisition comes at a time when Brazil is spending billions of dollars on building infrastructure in preparation for hosting the World Cup this year and the Olympics in 2016. CTIS’ wide network of delivery centers and wealthy clients will certainly position Sonda to make the most of the demand for IT services in today’s Brazil.
This is Santiago-based Sonda’s ninth acquisition since 1984. With more than 11,000 employees and operation in nine countries, Sonda is today one of the biggest names in the Latin America IT services industry. In Brazil, Sonda counts energy and mining firms, Vale and Petrobras, among its clients.
Avaldir Oliveira da Silva, the current head of CTIS, says he was very excited to work with Sonda and will remain the CEO for another five years to come.