OpenGate Capital announced today it sold its portfolio company Getronics LATAM to a South American private investment firm Southern Cross Group for 11 times what they paid for the company in 2012. The Century City-based private equity shop did not disclose financial details of the transaction.
OpenGate bought Getronics LATAM from Dutch telecommunications firm KPN in 2012, also for an undisclosed amount. Getronics LATAM was the Latin American branch of KPN subsidiary Getronics International providing information and communications technology services in Brazil, Mexico, and Colombia.
OpenGate said in a statement that during the four years the company was under their control, earnings before interest, taxes, depreciation, and amortization increased by more than 500 percent. In 2012 when they purchased Getronics LATAM, the private equity firms said the company generated more than $150 million in revenue from its operations and employed more than 2,000 people.
Among their cost-saving and streamlining efforts, OpenGate said it helped Getronics LATAM jettison its Brazil operations in a January 2016 deal with Brazilian telecommunications company Cimcorp, a subsidiary of New York-based Midas Medici Group Holdings Inc.
Deals & Dealmakers reporter Henry Meier can be reached at firstname.lastname@example.org. Follow him on Twitter @henry_meier.
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