The purpose of the purchase is to increase the cross-selling of products and services between companies.
A Positive Tecnologia announced the completion of the acquisition of the IT managed services unit of Algar Group, Algar Tech MSP. Recognized as the largest acquisition in Positivo’s history, it marks a major step in the company’s expansion in the IT infrastructure segment.
The acquisition was approved by the Administrative Council for Economic Defense (Cade) and other antitrust bodies. Positivo paid R$235 million for Algar Tech MSP, with R$190 million paid at the closing of the transaction and R$45 million to be paid 12 months after completion, conditional on meeting financial and operational targets.
With the integration of Algar Tech MSP, Positivo projects that revenue from the IT services and solutions unit will increase from 8% to approximately 18% of total revenue in 2024, with the potential to reach 20% in the next two to three years. Initially, Algar Tech MSP will continue to operate independently to ensure continuity of services to customers. The acquisition will double the number of Positivo employees, adding almost 4,500 new employees.
Positivo will seek to capture commercial synergies, including carrying out cross selling (in free translation, “cross-selling”) of products and the exchange of services between the two companies.
Expansion and Diversification
The acquisition of Algar Tech MSP allows Positivo to strengthen its presence in Latin America, where Algar already operates in 16 countries, including Mexico, Colombia and Argentina. This move is part of Positivo’s strategy to diversify its revenue sources and reduce dependence on computer sales and the retail channel.
Positivo, which continues to position itself as an important technology provider for the C class in Brazil, is now seeking to expand its offerings in nine strategic areas, which range from the sale of computers to the corporate sector to internet of things and payments services. .
With the acquisition of Algar Tech MSP and the recent purchase of security products distributor SecuriCenter, Positivo considers itself prepared for a phase of organic growth, although it maintains the possibility of new strategic acquisitions if interesting opportunities arise.
*With information from NeoFeed
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