IFS, the global enterprise applications company, today announces that it has signed an agreement with the owners of LATINIFS Tecnologia da Informação S.A. (“LatinIFS”) to purchase 100 percent of the shares of the company. The purchase price will be paid in cash. The acquisition will further strengthen IFS’s market position in the high-growth Latin American market and in IFS’s focused sectors like Oil & Gas, Utilities, and Engineering & Construction.
LatinIFS was established 2004 and is an IFS Applications distributor and implementation partner in Latin America. The company is headquartered in Barueri, São Paulo.
The company is forecast to generate net revenue of R$ 22 million (≈$12M USD) and EBITDA amounting to R$ 4 million (≈$2M USD) in the financial year ending December 31, 2011.
More than 120 companies in Latin America (Brazil, Mexico, Argentina, and Ecuador) have selected IFS Applications as their business software system. This includes several Brazilian “blue-chip” companies within IFS’s focused sectors like Oil & Gas, Utilities, and Engineering & Construction.
IFS has a positive strategy of investment in the BRIC economies, acquiring Escosoft in India 2005, investing in a fully-owned operation in Russia 2010, and in China the same year. With the acquisition of LatinIFS, IFS continues this strategy of increased presence and growth in the emerging economies.
“With the acquisition of LatinIFS, IFS can be seen to execute on its stated strategy for growth and do so by investing in one of the world’s fastest growing enterprise application markets. Brazil is the 7th largest global economy and is currently undertaking significant investment in IFS’s focused areas like oil & gas and construction & engineering. With projected strong growth in software sales in Latin America, estimated up 17 percent in 2012, IFS will strengthen its execution capabilities in this very attractive region to the benefit of all our existing and new customers” Alastair Sorbie, IFS CEO said.
Lávio Falcão Costa Ciríaco de Oliveira, CEO of LatinIFS, said, “We have been working as a close partner of IFS for many years and are pleased to be able to further strengthen our execution capabilities through this transaction. IFS, with its international presence and strong position in sectors that experience high demand in Latin America, is an ideal fit with our local market knowledge. My team and I very much look forward to strengthening our position within IFS and to accelerate the growth in the region.”
IFS Americas will be responsible for integrating LatinIFS and the President & CEO of IFS Americas, Cindy Jaudon, looks forward to welcoming both new customers and employees on board.
IFS expects that there will be a positive earnings impact from the acquisition already in 2011.