Connect33 Newsletter | April 2025
Hi readers, welcome to our April newsletter, where we cover Latin American technology trends, expansion, and M&A. In this edition, we dive into the M&A landscape across the region, along with recent expansion activity.
In Connect33 news, we launched our second edition of Scaling Engineering Teams in LatAm series in partnership with Envoy Capital Advisors. In the coming months, we will continue bringing you insights from industry leaders who have scaled software engineering teams for top companies in Latin America. Vamonos!
BACP LatAm Tech Market Update: In 2024, the number of technology deals decreased significantly compared to 2023. However, the total value of these deals saw a substantial increase, suggesting a move towards larger transactions. This can be evidenced particularly in software deals, where overall value increased considerably, likely influenced by factors such as decreasing interest rates, the growing impact of artificial intelligence, and an improvement in equity market. Software and IT services led deal participation, accounting for 36% of deal values, driven by AI investment, SaaS consolidation, and foreign tech companies seeking nearshoring solutions. Consolidation also emerged in cybersecurity.
Our take: Similar to venture capital investment in startups, Brazil continues to dominate the M&A market across LATAM, accounting for 62% of all deals in 2024. To no surprise, the Software/IT Services and Fintech sectors continue to account for a large portion of deals (50%), which we anticipate will continue through 2025. To date, we’ve highlighted Lovelytics acquisition of Datalytics and look forward to bringing you more of these stories.
#02 Scaling Engineering Teams in LatAm: Carlos Vela, Co-Founder of DaCodes, a software development firm based in Mérida, Yucatán, with 200 developers, joined us for our interview series. DaCodes is one of the top software companies in the Southeast region of Mexico, designing and coding top-tier digital products for enterprises, startups, and governments. The full interview is available on our blog and Substack page.
Acquia, a digital experience software provider, has launched a new Center of Excellence in Costa Rica. (Outsource Accelerator)
Cycurion (Nasdaq: CYCU), a leader in IT cybersecurity solutions and AI, announces a partnership with LSV-TECH to expand the new Managed Security Services Platform Cyber Shield into Latin America. (GlobeNewswire)
Indra Sistemas, a Spanish technology and defense company, inaugurated its first support services center in Bogotá, Colombia. (Outsource Accelerator)
TestFly, a US provider of QA testing solutions for the gaming industry, has announced the acquisition of Red Cerberus, a Brazilian premier video game testing company. (PRN)
Stefanini Group, a Brazil-based technology company providing digital solutions and consulting services, has announced the acquisition of a 60% stake in Escala 24x7 Inc., AWS's top consulting partner in Latin America. (Startupi)
ActiveCampaign, a global marketing automation platform, has acquired Hilos, a Mexico-based WhatsApp automation solution. (PRN)
Moova, an Argentine digital logistics platform, has announced the acquisition of Vonzu Tech, a Spanish developer of a logistics management platform. (Cinco Días)
Banorte, one of Mexico's leading banks, has signed an agreement to acquire RappiCard México, a credit card business offered by Rappi, for US$ 50M. (Bloomberg Línea)
Achilles Information Limited, a global leader in supply chain risk and performance management, has announced the acquisition of InfoControl, a specialist in artificial intelligence (AI) and contractor management based in Argentina. (Bridgepoint Group)
Izertis, a Spanish multinational technology consulting firm, has acquired a 50% stake in Coderland, a Panama-based software solutions company. (Coderland)
Fiserv, one of the largest global payments and financial technology companies, has reached an agreement to acquire Money Money Invest, a Brazilian fintech company. (Finsiders Brasil)
PRIME CONTROL, a Brazilian digital transformation company, has announced the acquisition of Infinitfy, a Brazil-based company focused on the SAP Business Technology Platform. (Startupi)
Framework Digital, a Brazil-based IT company, has acquired Rethink, a Brazil-based digital consulting company. (LinkedIn)
Meta has launched Meta AI Studio in Brazil, making it available in Portuguese. The initiative aims to personalize social experiences and democratize AI tools. (TI Inside)
AssureSoft, a nearshore software outsourcing company with operations in Latin America and the United States, has announced the opening of a new development center in Santa Cruz, Bolivia. (Financial Post)
Figment, the leading provider of staking infrastructure, is announcing today its formal expansion into Latin America with the establishment of a regional office in São Paulo, Brazil. (Business Wire)
Connect33 is a consulting firm specializing in expansion and engineering team building across Latin America. With strong experience across the region, we help companies scale efficiently by providing experience-based insights and services with our team of on-the-ground experts.
Our list of companies we’ve scaled with includes mid-to-large enterprises, including AtriumAI, Bain, Braze, EPAM, phdata, Tekton, and more. Learn more at connect33.io
Additional stories we’re following
The Future of Outsourcing: 2025 Perspectives on Global Collaboration (Forbes)
Latin America Startup Funding Fell Sequentially In Q1 (Crunchbase)
Market Volatility Comes at the Worst Time for Argentina’s Milei (Bloomberg)
Latin America Unicorn Clara Raises $80 Million for Sales Growth (Bloomberg)
Unfinished business: The ongoing tech gender gap in Latin America (McKinsey)
LatAm-focused roles at top tech companies.
Sailpoint is hiring a Customer Renewal Manager
Okta is hiring a Senior Solutions Sales Engineer - Enterprise
Okta is hiring a Sales Development Representative - Enterprise
DataSnipper is hiring a Customer Success Manager
Panaya is hiring a Customer Success Manager
Dataiku is hiring a Business Development Representative
Abnormal AI is hiring a Mid Market Account Executive
JFrog is hiring an Account Executive
HighLevel is hiring a Senior Customer Support Specialist
Relay is hiring a Customer Success Manager
Datadog is hiring a Manager, Commercial Sales