Grupo ASSA II

completed

Grupo ASSA Worldwide S.A. (“Grupo ASSA” or the “Company”) is an existing IFC client. The Company is a leading midsized pan-LAC IT service provider, with over 1,400 employees and 10 offices and delivery centers throughout Latin America, which offers: (i) Business Transformation and IT Consulting and Integration services; (ii) implementation and operations of Enterprise Applications, including Enterprise Resource Planning, Customer Relations Management and Business Intelligence; and (iii) Information Technology outsourcing (ITO), including maintenance and operation of software applications (application management services). The Company currently has offices and development centers in Argentina, Brazil, Mexico, Colombia and Chile. Grupo ASSA plans to double in revenues over the next 4 years, reaching $200 million by the end of 2017. An exit in 1 or 2 years is the ultimate goal of the shareholders. In order to achieve the necessary scale and margins to be an attractive acquisition target, the Company is focused on achieving three objectives: (i) increase operating margins in its high-end consulting business by adding higher value services and a more efficient consulting pyramid structure; (ii) grow the Application Managed Services business by 3x by a) increasing market share in Brazil and Mexico, and b) acquire new clients in the US; and (iii) expand the Application Development business unit by designing and building specialized industry software solutions, by increasing teams organically, and making an acquisition of a mid-sized software development firm in the region.Grupo ASSA is also seeking to refinance expensive short-term debt with a blended interest rate of approx. 13% with long term debt. This would allow Grupo Assa to free up operating cash flow in the short term that it could use to fund growth initiatives as described earlier. Debt with longer tenors would also improve the negotiating position vis-a-vis possible acquirers.The Company is legally incorporated in Spain but founded and with administrative headquarters in Buenos Aires, Argentina.