CI&T acquires Somo to Accelerate its Growth in EMEA
CI&T, a global digital specialist, has announced the execution of a sale and purchase agreement to acquire Somo Global Ltd (Somo), an award-winning digital product agency headquartered in the UK, to accelerate its growth in EMEA, the second-largest market for digital services.
In this strategic move, Somo will join CI&T's EMEA operation and enhance its growing operations by adding almost 300 digital specialists with deep expertise in digital products, working with some of the world's largest brands including Audi, Vanguard, Vodafone and Virgin Media, among others, CI&T said in a press release.
Somo is one of the UK's leading independent digital product agencies, recognized by Econsultancy's prestigious Top 100 ranking (2019). With offices in the UK, USA and Colombia, Somo delivers digital ambitions at pace and scale across several verticals including automotive, financial services, utilities and telecom. Its strong leadership team brings a proven track record of delivering business performance, winning and growing digital transformation programs internationally.
In 2021, Somo was recognized as the "European Digital Transformation Company of the Year" by CIO Europe Magazine, won the prestigious "The Drum Recommends" award for Software Development and Digital Strategy, and topped Campaign Magazine and Great Place to Work® rankings as the best place to work for in the UK and Colombia. Prior to this, Somo was listed as one of America's highest-scoring businesses in Inc. magazine's annual "Best Workplaces", ranking as the best place to work in South Carolina and D.C.
"Somo and CI&T have a similar culture - people first, innovation-driven and a strong reputation with global brands. Together we will be able to combine the power of a global company with the strength of a strong European player", said Cesar Gon, CI&T's founder and CEO.
"It's an honour to join the CI&T family, who, like Somo, is a founder-led company with shared values. We have no doubt that this deal will provide a successful future for all of our stakeholders; including our people and clients. We are committed to support CI&T's international expansion across EMEA, leveraging the extensive experience of Somo's leadership team in growing businesses globally." added Nick Hynes, CEO and Carl Uminski, COO and Co-Founders of Somo.
The base purchase price for the acquisition is £49 million (US$ 67 million), of which up to 25% will be paid in the form of Class A Common shares of CI&T, plus an earn-out clause of up to £9.8 million (US$ 13 million) based on future performance. Somo recorded approximately £25 million (US$ 34 million) in Net Revenue in 2021, a 41% growth compared to 2020. The completion of this transaction is subject to the satisfaction of customary closing conditions and is expected to happen during the first quarter of 2022.
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