WeDo Consulting, a subsidiary of Sonaecom, has recently told OSS News Review about the purchase of Cape Technologies Limited for €17 million, with a possible further €3 million to be paid subject to achievement of certain pre-agreed targets.
Following this acquisition, all global operations of Cape Technologies will be incorporated into WeDo Consulting, including Cape’s staff, clients, global footprint, software and any other assets that support the company’s activities worldwide.
This operation is the largest ever acquisition by a Portuguese company in the IT sector, catapulting WeDo Consulting to the position of world leader in the global Revenue Assurance market.
With its decision-making centre in Portugal, WeDo Consulting now has 60 clients in 36 countries worldwide.
With an expected turnover by the end of the year of nearly €14 million and a portfolio of world-class clients, Cape Technologies Limited was one of WeDo’s main competitors, operating as a provider of software solutions for the global telecommunications and content industries. It has a physical presence in Ireland, the UK, Poland, Australia and the US, and has 120 employees.
“This operation is a significant boost to our international expansion strategy which we have been supporting not only with acquisitions such as those of Cape Technologies and the Brazilian company Tecnológica Telecomunicações but also through the organic growth of our organisation. Leading the world market brings obvious advantages, but also new responsibilities. I’m certain the WeDo team is prepared for this new challenge”, assures Rui Paiva, CEO of WeDo Consulting.
According to Cláudia Azevedo, Executive Director of Sonaecom: “This operation marks the conclusion of yet another stage of Sonaecom’s strategy for the SSI division, which is seizing organic and non-organic growth opportunities, when they create value for our employees, company and shareholders. We’re remaining focused on growth, while we continue to surprise the market and work towards technological leadership.”
With this acquisition, WeDo’s headcount has increased to 370 employees distributed between 11 offices around the world and delivering services to some 69 clients in 36 countries.
Details and rationale of the transaction
— Initial investment of €17 million, with a possible further €3 million being paid subject to attainment of certain pre-agreed targets;
— Cape Technologies Limited has turnover of €14 million (end-of-year estimate);
Cape has its HQ in Ireland, with offices in the UK, US, Australia and Poland. Following the Cape acquisition, WeDo will have clients in 36 countries.
About Sonaecom
This Sonae sub-holding manages and controls a portfolio of brands that operate in four main areas: Telecommunications (Optimus, Novis, Clix), Media (Público) and Software & Integration Systems (WeDo, BizDirect, Mainroad, Saphety). In 2006, it generated €836 million of revenue, EBITDA of €184.3 million (with a 22% margin) and €51.3 million of operating cash flow, and employed 1,871 staff at the end of the year. Sonaecom is owned by the Sonae Group (51.49%), France Telecom (19.19%) and EDP (7.96%), with its remaining capital divided between several minority shareholders.
About WeDo Consulting
WeDo is a consultancy specialising in Information Systems with skills in Relationship Management, Business Intelligence, Net-business and Revenue Assurance.
Incorporated in June 2000, it commenced commercial operations in February 2001. It currently has some 240 consultants, with offices in Portugal, Spain, Germany, the UK, France, Brazil, Egypt and Malaysia, and clients in Europe, Latin America, the Middle East, Africa and Asia.