Intralinks Continues its Commitment to Brazil's Success
Over the past year, we’ve made a significant investment in Brazil. While we’ve been conducting business in Latin America since 2005, at the beginning of 2010 we became a local legal entity with the formation of Intralinks Serviços de Informática Ltda in São Paulo.
10 November 2010
I relocated to Brazil in January to lead our Latin American business, including our regional HQ in São Paulo. It’s been an interesting and great experience. As we approach the end of 2010, this seems like a good time to reflect on the company’s progress in Brazil.
Over the past year, we’ve made a significant investment in Brazil. While we’ve been conducting business in Latin America since 2005, at the beginning of 2010 we became a local legal entity with the formation of Intralinks Serviços de Informática Ltda in São Paulo. The São Paulo office, which serves as our Latin America headquarters, has a full service local team including sales, customer support, technical and finance staff.
Given the tremendous change and pressures that many Brazilian companies are facing as a result of the current market and economic strength, making more of our resources available locally shows our numerous clients we’re committed to helping them prepare and succeed. The resource-rich country has remained relatively sheltered from the worst of the global downturn, with consumer spending up, unemployment down and wages increasing. The result has been a surge in people and companies around the globe wanting to invest in Brazilian companies.
Over the last 12 months, there has been a 52% increase in M&A deal activity in South America. Intralinks has been working with many of these companies to get them “transaction ready,” helping them prepare, manage and share their documentation with potential investors. In fact, in 2009, our solutions were used for more than 25% of all M&A deals in Latin America with a value greater than $10 million, including over 40% of deals in Brazil.
As part of our continued commitment to helping our customers better understand and navigate the changing landscape, we recently co-hosted a conference with mergermarket. The event, Brazil 2011: Dealmaking in a Dynamic Environment, was a great forum for companies to better understand and learn how to capitalize on many of the emerging macro trends.
Held at the Grand Hyatt Hotel in São Paulo, the conference was attended by almost 100 people representing a variety of industries. Patrícia Pellini from the BM&FBOVESPA (Brazil’s stock exchange) presented on amendments to the exchange’s listing rules — CVM Instruction No. 480/09 — that will go into effect in November. Amendments will impact board of directors’ structure and governance, tender offers and reporting requirements, to name a few.
Juan Quirós, President of Grupo Advento, a holding company specializing in the fields of engineering, infrastructure and construction, followed Pellini with a presentation on key trends in infrastructure. A particularly interesting point that he made was that infrastructure investment is growing and is expected to reach $140 billion by 2012, compared to the current level of $100 billion.
A panel discussion on macro trends impacting cross-border M&A featured Bruno Bose do Amaral, Executive Director of M&A at BTG Pactual (the Goldman Sachs of Brazil); Otavio de Garcia Lazcano, CEO of LLX Logística S.A. (infrastructure and logistics service provider primarily in the port sector in Brazil); and Fábio Maranhão, Partner at Axxon Group (Brazil-based private equity investment fund manager). The panel confirmed that foreign investment in Brazilian companies would continue.
The industry experts also shared some best practices in deal structures and financing strategies for cross-border transactions. Lazcano of LLX Logística, a long-standing client of Intralinks, discussed his experience using our solution for multiple M&A deals, as well as facilitating the company’s IPO in 2008. Today EBX, LLX’s parent company, uses Intralinks as a corporate repository to manage critical legal and financial documentation across 10 subsidiaries, and for a wide range of uses including IPOs, M&A, and Board of Director communications.
It was a great event and another indication of all the hectic activities that are currently taking place in Brazil as a result of the strong economic climate and burgeoning M&A space. I can’t wait to see what 2011 brings for us and for Brazil.