Global systems integrator CI&T has acquired digital transformation product agency Somo Global to expand its reach across EMEA (Europe, Middle East, and Africa).
This is technology M&A deal number 98 that ChannelE2E has covered so far in 2022.
CI&T paid US$67 million in cash and stock for Somo Global, and may pay an additional $13 million based on various earn-out performance targets. The deal is valued at 2.0X to 2.4X Somo Global’s annual 2021 revenue. An EBITDA valuation multiple was not disclosed.
Somo Global has offices in the United Kingdom, United States and Colombia, Roughly 300 digital product specialists from the acquired business will tuck into CI&T’s EMEA operations. The key clientele will include Audi, Vanguard, Vodafone, and Virgin Media, among others, the buyer said. Key verticals served include automotive, financial services, utilities, and telecom.
CI&T, meanwhile, provides digital transformation services to roughly 50+ large enterprises and fast-growth clients. The company’s team spans 5,500 professionals focused on strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience, and driving operational efficiency, CI&T indicated.
In a prepared statement about the deal, CI&T CEO Cesar Gon said:
“Somo and CI&T have a similar culture – people first, innovation-driven, and a strong reputation with global brands. Together we will be able to combine the power of a global company with the strength of a strong European player.”
Added Somo co-founders Nick Hynes and Carl Uminski:
“It’s an honor to join the CI&T family, who, like Somo, is a founder-led company with shared values. We have no doubt that this deal will provide a successful future for all of our stakeholders, including our people and clients. We are committed to support CI&T’s international expansion across EMEA, leveraging the extensive experience of Somo’s leadership team in growing businesses globally.”
CI&T has been growing organically and through acquisition. For instance, the company acquired custom software developer Dextra in August 2021. The deal included CI&T onboarding 1,167 employees from Dextra.
CI&T’s net revenue was R$376.0 million in Q3 of 2021, up 55 percent from Q3 of 2020. Roughly 36% was organic growth and 19% was related to the Dextra acquisition as of August 10, 2021. CI&T shared the Q3 2021 results in December 2021.
CI&T launched an IPO ($CINT) on the New York Stock Exchange in November 10, 2021.