LatinFinance - May/June 2017 - 48

PARTING
SHOT

Globant has developed from an Argentine
startup to a global tech firm with a $1.3 billion
market capitalization. Chief executive Martín
Migoya sets out the company's acquisition
strategy

Growing a unicorn
This is an interesting time for technology companies in Latin
America.
The investor community is paying attention. Perhaps we'd like to
see them pay a bit more attention, but there are a lot of new funds
that have shown interest in making investments in the region.
I don't think it's an accident that two of the five "unicorns" in
Latin America that now publicly trade have come from Argentina.
It's a reflection of the vibrant entrepreneur community.
Our recent move to acquire Ratio, a digital services company
which focuses on video streaming, was based on the three pillars
we focus on when making acquisitions.
The first is that the acquisition [of Ratio] helps us continue to
expand our presence in the US, something we feel is very important
for us. Growing our presence in the US and working to make us
more efficient there helps give the company a sort of North Star.
Secondly, when we make acquisitions, we are always on the
lookout for new services or abilities. Ratio is a specialist in over-thetop media platforms, and today there are a lot of companies that
are looking to stream digital content on iPads, iPhones, Apple TV
and other devices. Ratio is particularly strong on Roku, the device
that allows users to customize their TV view experiences. So they
provide us with very special know-how in an area that we think is
growing in importance, particularly for media and entertainment
companies.
And finally, by incorporating Ratio, we're increasing our ability
to win new clients.
This was our fourth acquisition over the last three years, but
we don't have a target for the number of acquisitions we plan to
make. We have a large pipeline of companies we regularly follow,
but we're not driven specifically by making acquisitions only to
increase revenue. It's important for the company to be a good
cultural fit.
We always try to be very careful when we consider making an
acquisition. It's very easy to destroy value in this process if it isn't
done properly.
We're focused on using technology to help develop the

48 L ATINFINA NCE.COM - May/June 2017

relationship between
brands and their
consumers. Our focus
is creating an emotional
connection, providing
a digital journey and
exploring emerging
technologies. We are
not a traditional IT
outsourcing company.
We have a different way
of understanding and
utilizing technology, and
that's our big value-add.
There is still more work
to be done in terms of
building a longer-term
vision for the technology
industry in the region.
I really believe this is a
transformative industry.
But we do need to do
more. Governments in
the region are beginning
to understand we need
to make a big push in
improving our math
and science school
curriculums. We need to
do more to inspire young people to pursue careers in technology.
We also need to develop a longer-term cost structure for companies.
But we're starting to lay the groundwork for more people and new
companies. LF

"I REALLY BELIEVE
THIS IS A
TRANSFORMATIVE
INDUSTRY. BUT WE
DO NEED TO DO
MORE"

Martín Migoya is the chief executive officer of Globant. This is an
edited transcript of his comments in an interview with Kevin Gray.

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