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ECONOMY | 22-04-2022 18:37

Globant plans acquisitions to boost push into Asia and Europe

Argentine software giant planning more growth through acquisitions that give it access to new markets and technologies.

Argentina’s software giant Globant SA plans more growth through acquisitions that give it access to new markets and technologies, its chief executive officer said after the purchase of one of Uruguay’s biggest tech firms. 

The company looks to continue growing in Asia and Europe, said Martin Migoya in an interview. The purchase of GeneXus SA, one of Uruguay’s oldest software companies, is part of Globant’s strategy of investing in artificial intelligence to accelerate software development. It will also deepen Globant’s reach into Asia, as the Uruguayan company has a third of its clients in Japan, Migoya said. 

Now, Buenos Aires-based Globant, which makes software and develops technology for global companies including Google, Electronic Arts Inc and Banco Santander SA, is eyeing more targets. The company is looking for acquisitions that would either help it grow in priority locations or expand its reach into new areas of business.

“Our purchases are very strategic,” Migoya said. “They’re not about volume, because next to our revenue most figures look small. But we look at impact, in terms of multiplying connections with other clients.”

Globant posted US$1 billion in annual revenue for the first time last year, and expects sales to soar 70 percent this year. By comparison, GeneXus is projected to produce US$30 million in revenue this year. Migoya declined to disclose the value of the GeneXus purchase. 

Thematically, the company is looking at the online world known as the metaverse, gaming, crypto and AI for potential targets, but said these may change. The company has also made acquisitions in the crypto space, including the purchase of blockchain specialist Atix Labs Srl last October.

“Crypto is one of the biggest disruptions we’ve seen since the invention of the Internet,” Migoya said. “It’s a paradigm shift of how the world is storing and measuring value. I trust it on a personal level and trust it’s one of the world’s best reserves of value.”

Among the sectors with the most revenue potential, he noted projects related to the metaverse or digital transformation processes that gained momentum during the coronavirus pandemic. 

Other key points from the interview:

– Migoya said Globant is allowing employees to work remotely indefinitely, while also continuing to invest in its offices around the world for those who choose to work in person.
– The company has offices in 18 countries and on Thursday it announced the launch of its new Santiago office, as well as a pledge to invest US$40 million there in the next three years
– He added that operations haven’t been significantly affected by the war in Ukraine, though the company is supporting employees in Belarus and offering relocation
A data breach last month had limited impact on the company, he added.

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by Carolina Millan & Ken Parks, Bloomberg

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