PromonLogicalis is born with US$ 120 million in assets
Gazeta Mercantil - 03/18/2008
With the purpose of being the number 1 company of the Latin American integration market in telecommunications and information technology (IT), Promon Tecnologia and the British Logicalis have joined their activities in a joint venture that became known as PromonLogicalis Latin America, with annual revenues of US$ 250 million. The business amounts to US$ 120 million and it does not split the control of the new company into equal parts. Promon SA holds 30%, whereas Logicalis will hold the greatest part, 70%. In order to make the business possible, Logicalis controlling company, Datatec Limited, will pay US$ 77 million to Promon SA, declared the CEO of the Brazilian group, Luiz Ernesto Gemignani. Besides having 30% of interest in the newly-born company, Promon will acquire nearly 4% of the capital of Datatec, the controlling company, an interest which means US$ 25 million. The remaining US$ 52 million will go into the cash of Promon without a preset destination. "They will be used in the several plans we have", affirmed Gemignani, making reference to the context of the warming of the economy, reflected in the sector of engineering and the area of operation of Trópico, a subsidiary company, whose control is divided with the CPqD (Center for Research and Development in Telecommunications) and the telecom equipment company, Cisco. The company is already born with plans to grow fast, even if, in order to do so, it is necessary to make acquisitions. "The goals are to double the sales to US$ 500 million in three years", declared Luis Eduardo Cardoso, who is the main executive officer of the joint venture. The headquarters and the 250 Brazilian employees will not undergo alteration, but the company will gain commercial offices in Argentina, Uruguay, Chile, Peru, and Paraguay. And, should everything go well, the first acquisition will take place in Mexico, the market that is core interest of PromonLogicalis. Datatec, the Logicalis controller company, sells US$ 3.3 billion, whereas the participation of the Logicalis division is of US$ 1 billion. Promon SA gathers revenues of R$ 600 million (US$ 341 million). The subsidiary company Trópico plans on doubling its sales this year to R$ 200 million (US$ 113.64 million) and Promon Engenharia also intends to double its income due to the warm moment of the economy. The government and the corporate segment are the focus of PromonLogicalis, said Cardoso.