Private equity firm OpenGate Capital has completed the sale of Getronics LATAM to Southern Cross Group, a Latin American private investment firm.
The exit yields greater than 11 times invested capital for OpenGate Capital. Financial terms of the transaction have not been disclosed.
Getronics LATAM, with operations in Mexico, Colombia, Peru and Venezuela, is an integrated ICT products and services provider for the large enterprise market including workspace management services, connectivity, data centers and consultancy services.
OpenGate Capital first entered the Latin American market in 2010 through its acquisition of Sopho, a Brazilian IT services company, from Philips. As a strategic add-on, OpenGate Capital then acquired Getronics LATAM from KPN in 2012 to bring greater scale and operating strength across Brazil, Mexico and Colombia.
The third phase of OpenGate Capital’s buy and build strategy was the acquisition of Damovo Latin American in 2014 from Damovo Europe. This acquisition added scale, operational capabilities and blue chip customers in Mexico and Brazil.
All three acquisitions were made through OpenGate Capital’s legacy, pre-fund investment platform.
During OpenGate Capital’s ownership period and as a result of these strategies, there has been an increase in revenues of over 11 times and an increase in EBITDA of over five times and OpenGate Capital returned over 11 times its invested capital.
Andrew Nikou, OpenGate Capital’s founder, managing partner and CEO, says: “I am incredibly proud of our investment in Getronics LATAM and the value we created through our operational turnaround and accretive add-on efforts. Under our stewardship, we increased the value of the platform, doubling the EBITDA performance of Getronics. While the Latin American market was challenging, it did not deter us from pursuing what we believed would be a great investment. Through our strategy of working with local management teams and building a deeper understanding of each market’s particular dynamics, we successfully achieved our objectives. As Getronics LATAM transfers to Southern Cross Group we are confident that together they will continue on a path of growth.”
