LatAm's Padtec ups R&D spending, mulls optical plant expansion

Latin American optical solutions provider Padtec increased R&D investments in Q2 and is studying the expansion of its Brazilian plant, CFO Ramon Cabral said in an earnings call.

“We see that other companies are verticalizing their operations. Obviously, there is a need for investment for this, but there are also margin gains. So, yes, we are thinking of a possible expansion of our park here” to include new product lines, he said.

Sales of DWDM equipment for the foreign market (Brazil-excluded) grew 25% year-over-year, to 34.7mn reais (US$7.11mn) in Q2, and 26.3% to 34.7mn reais in H1, with the northern part of Latin America being the highlight, the company reported.

R&D spending was 10.8mn reais in Q2, compared to 10mn reais in 1Q23 and 10.4mn reais in 2Q22. ISPs represent over half of the total value recorded with DWDM equipment in Brazil and grew approximately 20% in 1H23 compared to 1H22. 

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Brazilian ISP Unifique will invest US$5mn in core 5G network equipment from China’s ZTE, investor relations director Guilherme Vilani told investors in a Q2 call.

A first installment was already paid, with the rest planned for the next quarters, he added. Unifique also ordered antennas for its 5G network “from more than one manufacturer,” which are yet to arrive in Brazil. The suppliers and quantity were not informed.

The ISP hopes to launch commercial 5G by the end of the year, initially using other carriers’ networks. The company’s mandatory commitments assumed in the 5G auction start to take effect only in 2026, although the ISP is considering bringing them forward.

The company invested 68mn reais in Q2, up 25.4% year-over-year.

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Fiber firm Fibracem will invest 1.8mn reais in the expansion of a warehouse and distribution center in Pinhais, Brazil’s Paraná state, by some 2,000m2.

Works are expected to be completed in September, with the plant reaching 8,000m2. The investment follows a recent expansion in its unit in Linhais, Espírito Santo state.

Fibracem’s distribution center in Pinhais serves customers in parts of Brazil and in other Latin American countries.

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German industrial group Bosch opened a 3,000m2 distribution center in Parque Logístico Lima Sur, in Peru’s Lurín.

The facility is expected to house inventories of finished products, thermals and tools, and to boost the company’s e-commerce operations.

The center was built by Swiss-based multinational Kuehne + Nagel, which has developed distribution centers for Bosch in other Latin American countries.

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UK firm Vesta Software Group acquired for an undisclosed amount Uruguay’s GSOFT, its sixth acquisition in the local market.

“Vesta is delighted to add GSOFT to the group. The company has shown exceptional growth over the last decade and is now regarded as one of the leading providers of electronic invoicing solutions to the Uruguayan market,” Vesta CEO Richard Clancy said in a statement.

“This latest acquisition demonstrates that our strategy of buying and holding the companies within our portfolio is key to our growth in Latin America,” added Clancy.

GSOFT was founded in 1999 and provides electronic invoicing, means of payment and systems for retail outlets and restaurants.

Last year, Argentine unicorn Globant acquired GeneXus, deemed Uruguay’s leading software and coding company.

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Another UK-based firm, cloud and cybersecurity solutions provider Claranet bought Brazilian cloud and data management company ADTsys for an undisclosed sum.

In April this year, ADTSys had already entered a commercial partnership with Claranet.

Founded in 2011, ADTSys reports more than 100 clients in its portfolio.

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Mexican fintech Albo bought local startup Delt.ai for US$20mn to complement its payment portfolio.

As part of the acquisition, Delt.ai’s CEO, José de la Luz, joins Albo as its new chief operating officer.

Founded in 2019 and headquartered in Mexico City, Delt.ai was accelerated by Y Combinator and operates a corporate credit and spend management platform for small and medium-sized businesses (SMBs).

With the acquisition, Albo said it becomes “the only neobank to offer debit and credit products for both consumers and SMBs” in Mexico.

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General Catalyst led a US$45mn series B round for Tractian, a Brazil-based industrial equipment maintenance management platform, valuing the Brazilian company at 1bn reais.

Monashees also participated and a follow-on involved US-based Next47.

Tractian reports more than 500 multinational customers and presence in over 1,000 industrial plants, including ArcelorMittal, Suzano, P&G, Unilever, Danone and Hyundai. 

The company aims at a 300% revenue growth this year in Brazil and Mexico, in addition to expanding its presence in the US.