JARS Capital buys Uruguayan software factory Element14

US investment group JARS Capital has acquired Montevideo-based software factory and former supplier Element14, Uruguayan ICT chamber Cuti reported.

The deal’s value was not disclosed.

Element14 develops custom software for large organizations and minimum viable products for product validation. Clients include Simon & Schuster, BMW, and Penguin Random House.

JARS Capital, for its part, has collaborated with dozens of startups focused on real estate.

The acquisition talks lasted around six months and Element14 was valued at a “seven-digit dollar figure,” according to Cuti. 

Element14 has been focused solely on the US market and the investment will lead to the launch of a software development center in Uruguay, according to the report.

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Costa Rica signed an MOU with Microsoft to foster tech innovation and digital transformation, said the country's ICT ministry (MICITT).

Under the agreement, Microsoft will promote science, tech, engineering and math careers in the country through the Microsoft Learn Career Connected program.

The company will also work on the digital transformation and interoperability of government systems, with a special focus on AI, cybersecurity, digital skills formation, among others.

Costa Rica is Microsoft’s main LatAm hub for services, support and systems development. In February last year, the company opened its largest regional office in capital San José.

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In yet another M&A move, Brazilian internet service provider Unifique bought Vexpert for 25.1mn reais (US$5.16mn).

Both firms are based in the state of Santa Catarina, and the purchase price is subject to potential adjustments.

Vexpert serves individuals and corporates in around 50 cities in Santa Catarina, with approximately 28,000 fiber optic accesses, Unifique said in a market filing. The takeover is expected to boost Unifique’s client base by 5.3%.

Unifique also said the deal is strategic for its fiber segment push and the future launch of 5G.

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The Brazilian M&A scene recorded 95 transactions in November, down 18% year-on-year, according to a report by PwC Brasil.

The number of deals for January-November was 1,164.

The technology sector led the pack with 40% of the deals, followed by the financial sector (6%), energy and utilities (5%), and consumer products (5%).

“If forecasts are confirmed, the trend is that in 2023 the total volume of operations will have been around 15% to 18% lower than in 2022,” said PwC Brasil partner Leonardo Dell’Oso in a release.

The firm is projecting M&A growth for 2024 of up to 15%, driven by the expectation of a tax reform approval, lower inflation and cuts to the country’s key interest rate.

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Irisity, a Swedish AI-driven surveillance tech company, is expanding its Latin American presence to Argentina and Brazil.

After launching in Colombia, Mexico and Chile last year, the company is now mainly targeting the Southern Cone and expects its 2024 LatAm sales to grow in the range of 30-50%, Irisity said in a release.

The company's target segments are public transportation (subways, highways, railways, and airports) and critical infrastructure (ports, and energy and mining companies), as well as smart cities.

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New Brazilian accelerator Strive unveiled the first two startups in its portfolio, following a selection process that reportedly attracted more than 250 early-stage companies.

One of the selected firms is Mercado Único, a platform that uses AI to connect the industrial sector with distributors and retailers. The other is Coeh, which offers a marketplace for digital products.

Strive intends to secure 25mn reais in funding by the end of 2024 and says it has enrolled 20 investors.

The firm's focus is on startups in the pre-seed and seed phases, and it aims to provide the entrepreneur's first institutional investment.

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Brazilian early-stage VC firm Indicator Capital said it made a seed investment of US$2mn in anitya.

Founded in 2021, anitya has created a web platform to offer immersive experiences.

The investment is the eighth by the firm’s Fundo 2 Indicator IoT.