Acquisition Provides Significant Accretive Value to OpenGate’s Latin American Portfolio of IT Businesses
LOS ANGELES, CA – July 7, 2014 – OpenGate Capital, a global private investment firm, announced today that it has acquired the shares owned in Damovo Mexico SA de CV and Damovo Do Brasil SA by the Damovo Group. The businesses are highly specialized Internet Protocol (IP) and Unified Communications (UC) systems integrators serving blue chip customers throughout Latin America. The terms of the acquisition were not disclosed.
Mr. Andrew Nikou, OpenGate Capital’s managing partner and CEO stated, “OpenGate Capital’s acquisition of Damovo Brazil and Mexico demonstrates our commitment and enthusiasm for the Latin America market. Since our prior acquisitions of Sopho in 2010, and Getronics in 2012, we have been laying out new strategies to build value in the technology and telecommunications sector. With the addition of Damovo Brazil and Mexico operations, we are now able to leverage the strengths of our Latin American portfolio throughout the region. There are many benefits of this acquisition including;
– The combined businesses will have significant competitive advantages in the Latin American market,
– Damovo’s IP/UC telephony-focused solutions are strategic complements to the Getronics and Sopho portfolio of integrated ICT services, and
– there is virtually no customer over-lap allowing for new cross-selling opportunities.”
Damovo Mexico and Brazil are leading Internet IP/UC systems integrators with strong domestic platforms and brand recognition. Combined, Damovo Mexico and Damovo Brazil generate more than USD $100 million in revenue, and has a highly skilled and technical workforce with nearly 400 employees serving 1,180 contracts. Their blue chip customers include major banks, government agencies, automotive companies, financial institutions and other leading corporations.
OpenGate Capital’s Partner, Mr. Sebastien Kiekert Le Moult, led the transaction and stated, “We are thrilled to have completed our third acquisition in Latin America. While we have been very successful growing the Getronics and Sopho businesses over the past four years, we instantly recognized the tremendous accretive value that Damovo would add given the synergies and strengths of the combined businesses. Through this acquisition we have created a powerful, multi-faceted platform for providing best in class IT services and products for the entire Latin American market.”
Getronics LATAM was acquired by OpenGate Capital from KPN in May of 2012. Getronics LATAM is an IT solutions integrator with a sophisticated and comprehensive service offering for service providers, carriers and the enterprise market. The business maintains important certifications and has more than 2,500 employees serving customers in Brazil, Mexico, Colombia and Venezuela.
Sopho Business Communications was acquired by OpenGate Capital from Philips in 2010. Sopho is also a technology solutions integrator focused on telephony solutions predominantly in the enterprise market with field service operations and an infrastructure outsourcing model. Sopho is headquartered in São Paulo with 148 employees working throughout Brazil.
The combined businesses of Getronics LATAM, Sopho Business Communications and Damovo Brazil and Mexico generate more than USD $300 million in revenues, employ over 3,000 people, and have operations throughout Brazil, Venezuela, Peru, Mexico and Colombia.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
For more information, please contact:
OpenGate Media Contacts
Telephone: +1 (310) 432-7000
Sitrick & Company
Telephone: (310) 788-2850
OpenGate Business Development Contact
Telephone: +1 (310) 432-7000