Tivit: acquisitions on radar for Colombia, Chile

Brazilian IT services firm Tivit is mulling acquisitions to boost its growth and strengthen its portfolio in Latin American countries where it already has a relevant presence, namely in Colombia and Chile.

Tivit's first and sole international acquisition to date was Chile's Synapsis, in 2014. Last year, after two years as Tivit-Synapsis, the companies started to operate under a unified Tivit brand.

"Yes, we are seeking acquisitions. In addition to organic growth, we are also looking for inorganic growth in the region," André Frederico (pictured), the group's chief strategy officer (CSO), told BNamericas.

"We are seeing acquisitions in countries where we already have a stronger presence, especially Colombia and Chile, and the idea is to strengthen operations or to bring key expertise for the provision of services to countries in the region."

Tivit has just opened offices in Mexico, Bolivia and Paraguay, following three new contracts, already in force, inked with Latin American insurance, automotive and beverage companies, each with annual revenues of around US$2mn.

IPO ON HOLD

While new M&As abroad are on sight, plans to go public with an IPO on the São Paulo stock market, expected for this year, have been put on hold, Frederico revealed.

Tivit prefers to wait until 2019 to gain a better picture of the country's economic recovery and the political agenda, because 2018 is considered too complex due to, among other things, the presidential elections, the CSO explained.

"We did not find the expected conditions to give continuity to the IPO process and preferred to pause the process," he said.