International Investors Seizing Opportunities in LATAM’s TMT Sector

Unique Integrated Information System

Headquartered in Bogotá, Colombia, SAC has more than 30 years of experience in the software market, providing solutions for the Healthcare sector. Over the years, it has managed to secure its position as the only company in the country with an integrated information system that covers all areas of healthcare practices and has been a key contributor to the automation of the country's Healthcare sector. SAC is present in every region in Colombia and serves the largest number of digitalized private healthcare centers in the country. Furthermore, it boasts a 99% client retention rate thanks to its high-quality post-sales services.

SYAC's client base is wide and diversified, and includes hospital networks, as well as government entities. Delivering a scalable, adaptable, and highly innovative product, it has great potential for internationalization.

Immature Market Thwarts Initial Sales Attempt

A couple of years ago, SAC's founders began to explore strategic alternatives surrounding their stake in the business to ensure the company's legacy for years to come. Inverlink successfully pitched to the client and was awarded the mandate, beginning work on the company valuation, and preparing materials for market testing. They initiated a competitive sales process contacting financial and strategic investors.

However, while the LATAM market was showing great potential, it was still relatively immature which resulted in the sale process halting for a period of time. The Inverlink team, however, were undeterred, convinced that there was great potential for both their client and the industry.

Carpe Diem

Fast forward just a couple of years and there were signs of significant growth in the Healthcare, Software and Technology sectors, COVID-19 having provoked a boom in the markets. Furthermore, despite the challenging circumstances, the pandemic, macroeconomic and political uncertainties in the region, SYAC was in fact outperforming, continuing to deliver remarkable year-on-year financial and operational results. Therefore, Inverlink felt the timing was now right to reinitiate the sales process. The favorable market situation in conjunction with a company outperforming allowed Inverlink to narrow the potential investor pool, engage with major potential buyers and run a competitive sales process, finally accepting an offer from Vela Software in late 2022.

An M&A Veteran

Vela Software is a leading software provider and a subsidiary of Constellation Software Inc - TSE:CSE (“CSI”). CSI is a Canadian publicly traded company, providing software and services to select public and private sector markets. It operates in more than 100 countries and across dozens of verticals. Since it was founded in 1995, it has completed over 500 acquisitions of small, medium, and large private and public companies and is one of the most relevant ecosystems of vertical market software companies in the world. It has a proven track record of solid growth through its many acquisitions and organic expansion.

Steadfast Confidence in the Client's Value

The process was not without its challenges. Having already completed 500 acquisitions, CSI not surprisingly. had very rigorous due diligence standards, requirements, and methodology in place. Therefore, understanding the buyer's needs from the outset, and being able to swiftly deliver high quality responses was key. During the process, the country also underwent presidential elections and a subsequent government transition, with Colombias new government causing an increase in uncertainty from foreign investors. Despite the challenges, Inverlink's unwavering confidence and belief in the potential of SAC and its business impressed upon the buyer its indispensability in the company's portfolio and the deal was successfully closed on time.

Global Expansion on the Horizon

Following this transaction, SAC, alongside Vela

Software and CSI will be able to further enhance its business in Colombia and beyond. The support of a regional and global franchise will enable SAC to gain new clients and expand its market share

Resilient Sector Plays Key Role in M&A Activity

The TMT sector has proven resilient to the difficult macro-economic trends. At the same time, there remains a strong need for digital transformation across many industries. Therefore, it is expected that the market will continue to hold its pace and play an important role in upcoming M&A activity.