Mergers & Acquisitions

Mergers & Acquisitions

July 22, 2011

Midas Medici Signs Agreement to Acquire Brazil-Based CIMCORP

An innovative green IT company in the fields of virtualization, cloud computing, data management, and Smart Grid solutions, Midas Medici Group Holdings, Inc., announced that it has signed an agreement to acquire CIMCORP, which is a Brazil-based mid-sized but well respected integrator.  The closure of the deal is subject to regular closing conditions and financial measures and is expected to close by the end of July 2011.

CIMCORP is a company that specializes in data center services with importance on complex solutions that allow Brazilian companies to virtualize and put into practice cloud-based systems. The acquisition of CIMCORP, which operates throughout the country of Brazil, will allow Midas to extensively expand its present IT offerings into South America.  Midas is anticipated to infuse green IT into the CIMCORP consumer base with its Consonus and UtiliPoint brands' know-how, while also benefitting from a boost to the combined company's revenue streams. CIMCORP has built strong relationships with government as well as commercial clients, resulting in over 200 employees and income in surplus of $84 million in 2010.

In a release, CEO and Co-Founder of Midas, Nana Baffour, said that "The acquisition of CIMCORP is a milestone event for Midas Medici and its shareholders. As you know, we have consummated several acquisitions to date, including Consonus, WeatherWise and EHFC. However our latest acquisition with CIMCORP takes center stage as we propel our IT service offerings with exciting new international initiatives, while immediately doubling Midas' consolidated revenue generating capabilities.  CIMCORP allows us to enter the fast-growing IT market in Brazil and Latin America as we look to leverage our new operations and develop new business prospects that wouldn't be possible as separate organizations."

Being one of the fastest developing economies in the world, growth in Brazil is outstanding, with its GDP projected to grow by 5.9% a year until 2014 according to the Brazilian Finance Ministry. Brazil, over the next six years, will be renovating its cities as it prepares to host the Soccer World Cup in 2014 and the Olympics in 2016, thereby spending large amounts on its infrastructure, including IT solutions to manage the demands of travelers, guests, and athletes Midas expects to follow considerable opportunities for expansion in Brazil's high-growth IT sector, including cross-border revenue streams. As a matter of fact, more American firms are beginning to realize the astonishing benefits of the manageable time zone differences between Brazil and the US.

Carolyn John is a Contributor to TMCnet. To read more of her articles, please columnist page.

Edited by Rich Steeves

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