Brazil’s Meta looking at M&As, industry projects and VC in LatAm

Brazilian integrator and digital transformation company Meta is looking at accelerating its expansion in the Americas, betting on hires, acquisitions, projects with industry verticals and startup investments, CEO Telmo Costa told BNamericas.

Meta, which was created in 1991, many years before Facebook announced its parent company Meta, provides consultancy services and outlines digital transformation projects for enterprises.

Its partners include SAP, whose software is used by Meta as the “backbone” for the digital transformation of companies, and CRM provider Salesforce.

The company claims to have operations in 350 cities in 14 countries, serving over 300 clients through 2,650 professionals.  

The bulk of its international footprint, however, is concentrated on the US and Canada, where most non-Brazil revenues come from, said Costa. 

The company has 28 customers in the two countries, with 100 professionals supporting them both in-person and remotely.

These clients comprise mid-sized and large tech-intensive companies such as steelmakers and food groups. Costa declined to disclose names, citing commercial reasons and non-disclosure agreements.

The goal, now, is to diversify this footprint.

“Latin America is strategic for us. We accelerated our entry into North America, driven by some customers we served in Brazil and that had operations in the US, but we now have the opportunity to go beyond,” Costa said.

In Latin America, Meta has staff in Uruguay, Argentina, Chile, Colombia and Mexico working in the nearshore format and providing development and support to global customers. New hires are being planned.  

The company is also fine-tuning which markets will receive first on-site operations and the business lines to be addressed in each of them. Mining and financial enterprises, for example, are focuses. 

This new LatAm drive is due for 2023, according to Costa.

Meta is also studying the market for its first acquisitions, in Brazil and abroad, and is increasing investments in startups, including through a 2020-structured venture capital vehicle called Meta Ventures. 

To date, the company has invested in six startups, all with minority equity allocations.

Going public with an IPO is equally on the radar, although for the long term.

PERFORMANCE

Meta grew its revenues by 70% last year over 2020 and is targeting 60% growth for 2022. Costa did not give hard figures.

Projects currently underway include the development of Brazil’s new national ID system, CNI, which is under the responsibility of the justice ministry. CNI will have both a physical and digital version.

The project is divided into phases and will be implemented in the coming months, the CEO said.