Content Management Targets Central America
Software AG announced a direct market presence in Central America and the Caribbean through the acquisition of APS Venezuela and five sister companies in Panama, Costa Rica and Puerto Rico. APS Venezuela has been a Software AG distributor for over 25 years and has a well established reputation in delivering high performance transactional systems for large customers in banking, manufacturing, the oil and mining industries, and public administration. This acquisition is another step in the implementation of Software AG’s growth strategy in Latin America, following the opening of offices in Chile.
“We see great potential in Latin America, with industry analysts forecasting high growth in IT spending.” said Software AG CEO, Karl-Heinz Streibich. “We believe that cost control, risk minimization and resolving business issues through IT are major investment drivers in the region. Software AG’s Service Oriented Architecture (SOA) approach to Legacy Modernization and Business Integration is ideally positioned to fulfill these market requirements.”
Andres Zancani, founder and previously majority owner of the acquired companies, will be appointed as the new general manager for Software AG Venezuela and the Caribbean. “This is an ideal time for Software AG to strengthen their direct market presence in Central America and the Caribbean,” said Andres Zancani, “and we are excited by the growth opportunities that this has opened. We have more than 50 large customers using Software AG’s high performance transaction systems. These customers can now benefit from the full availability of Software AG’s XML Business Integration portfolio. An established customer base and the resources to address new market segments give us a solid basis for growth in the region.”
Amongst those customers are public agencies and companies such as the National Service for Tax Administration, the Bank of Venezuela Grupo Santander and the BBVA Provincial, in Venezuela; the Public Registry of Panama and the Aseguradora Mundial of Panama; the General Directorate for Taxes in Costa Rica and the Treasury Department in Puerto Rico.
Around 40 employees of APS Venezuela and sister companies with expertise on Software AG’s technology and solutions will continue to provide support, consultancy, marketing, sales and training services. Incentives to retain key personnel will be introduced to insure continuity of customer service.
The group of companies is now 100% owned by the newly founded Software AG Latinoamerica S.l. Revenue for the acquired companies was $4.6 million in 2004. The purchase price is in the range of one-time 2004 revenue. There will also be a variable earn-out based on future revenue and margin growth.
www.softwareag.com
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