This is technology M&A deal number 21 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
GFT Technologies SE, founded in 1987, is based in Stuttgart, Germany. The company has 9,671 employees listed on LinkedIn. GFT's areas of expertise include information technology, ServiceNow, technology, banking, insurance, industry, cloud, IT, software, blockchain, DLT, and AI.
About The Deal
Sophos Solutions S.A.S, founded in 2006, is based in Bogotá, Colombia. The company has 1,563 employees listed on LinkedIn. Sophos Solutions' areas of expertise include banking, consulting, software factory, telco, banking as a service, and testing.
The deal, involving the purchase from global private equity investor Advent International, helps GFT shore up a position among banking IT service providers in Latin America. The acquisition, expected to conclude in early February 2024, also augments GFT's global delivery capabilities, according to the company.
With the acquisition of Sophos Solutions, GFT not only increases its presence to 20 countries but also strengthens its position in Latin America, adding Colombia, Chile, and Panama to its existing presence in Brazil, Mexico, and Costa Rica. This strategic expansion positions GFT as a top three provider of IT services for banking in Latin America.
Impact on Workforce and Revenue
The addition of Sophos Solutions' employees boosts GFT's global headcount by nearly 20%, bringing the total to over 12,000.
This represents the largest talent integration in GFT's history through an acquisition, according to the company.
GFT Acquires Sophos: Leadership Insight
Marika Lulay, CEO, GFT, commented:
"In this strategic acquisition, we're not just merging companies; we're multiplying potential. It is a logical continuation of our successful strategy for growth and profitability. All aspects of Sophos are highly valuable to us. From the new colleagues, new competencies, and new clients to the new partners for core banking solutions, such as Oracle Flexcube. All this results in high traction for GFT in Latin America’s third-largest market Colombia, plus exponential growth scope in the Americas and beyond.”
Lucas Marulanda, Director, Advent International, said:
“We are proud to have partnered with the entire Sophos team during a time of significant growth for the company. Since our investment in 2020, Sophos has strategically scaled its platform through international and regional expansion and continued to help drive significant technological transformation and modernization across the financial industry. We look forward to following the company’s continued success.”
Felipe Villa, CEO, Sophos Solutions, added:
“For everyone at Sophos, it is a great opportunity to become part of GFT. I see a perfect fit with combined expertise and global presence of Sophos and GFT. This will enable us to even better support our clients on their digital transformation journey – great news for our employees and their career development, as well as for our clients. We are grateful to Advent for taking our company to the next level.”