EPAM Expands its Reach in Latin America with Acquisition of Vates

Rhea-AI Summary

EPAM Systems, Inc. acquires Vates S.A., a software development company, to enhance its global delivery capabilities and software development portfolio. The acquisition aims to strengthen EPAM's position in providing advanced digital services and product engineering solutions to clients worldwide.

Insights

Market Research Analyst

The acquisition of Vates S.A. by EPAM Systems, Inc. represents a strategic move to bolster EPAM's presence in Latin America and enhance its service offerings in cloud, engineering and digital services. From a market perspective, this move is indicative of EPAM's commitment to growth through expanding its geographical footprint and technical capabilities. The addition of 500+ engineers from Vates could potentially lead to increased innovation capacity and service diversification, which may be reflected in EPAM's future financial performance and stock valuation.

Given Vates' established client base in multiple sectors, including finance and healthcare, EPAM may experience cross-selling opportunities and an expanded client portfolio, potentially leading to revenue growth. Furthermore, the emphasis on next-gen solutions and the integration of Vates' engineering expertise suggests a forward-looking approach to addressing complex technological challenges, which could enhance EPAM's competitive edge in the market.

Financial Analyst

EPAM's acquisition of Vates can be analyzed from a financial standpoint by examining the potential impact on EPAM's earnings, cost synergies and return on investment. The acquisition's success will largely depend on the effective integration of Vates' workforce and the realization of anticipated synergies. The financial market will closely monitor EPAM's subsequent quarterly earnings for indications of the acquisition's accretive nature to the company's earnings per share (EPS).

Investors should consider the acquisition's financing structure and its effect on EPAM's balance sheet, including any changes in debt levels or cash reserves. Additionally, the market's reaction to the acquisition could be reflected in short-term stock price volatility, as investors assess the potential for long-term value creation versus the immediate costs associated with the acquisition.

Economist

The acquisition by EPAM has broader economic implications, particularly for the Latin American technology sector. The investment in Vates signals confidence in the region's talent pool and technological capabilities. This move could catalyze further foreign direct investment into Latin America, fostering job creation and economic development. It may also contribute to the upskilling of the local workforce as EPAM reinvests in community development and technical training programs.

From a macroeconomic perspective, such acquisitions can influence industry trends, potentially leading to increased consolidation in the technology services sector as companies seek to scale and diversify their offerings. The impact on local economies and the broader industry will depend on how effectively EPAM leverages Vates' capabilities and how it manages its expanded LATAM operations.

Enhancing EPAM's ability to deliver advanced cloud, engineering, testing and digital services to global clients 

NEWTOWN, Pa. and CORDOBA, Argentina, March 26, 2024 /PRNewswire/ -- Staying competitive as technology evolves can be challenging. However, finding the right technology solution partner with next-gen delivery capabilities can significantly ease digital transformation initiatives. EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced its acquisition of Vates S.A., a multi-award-winning software development company with offices in Argentina and Chile. Vates will enhance EPAM's software development portfolio and diversify its Latin America delivery capabilities.

"Vates shares our Engineering DNA and integrated consulting approach for accelerating digital transformation and enhancing business value, empowering the world's leading brands to become more agile and adaptive enterprises," said Hugo Gomez, Vice President of Latin America at EPAM. "With the addition of hundreds of skilled engineers across LATAM, we're excited to leverage Vates' strong engineering capabilities, including cloud, testing and Atlassian platform knowledge."

Vates is an established market leader that delivers end-to-end solutions for leading enterprise clients across multiple industries including finance, healthcare, high-tech, media and telecommunications. Since 1991, it has focused on technology research and innovation to provide services such as custom software development, application testing, digital consulting, system integrations, big data analysis and IT maintenance and support. Vates' global clients include Thomson Reuters, telecommunications giant Claro and financial services provider Bancor.

"We're pleased to welcome Vates and their team of 500+ talented engineers to EPAM as we further develop next-gen solutions to support today's most complex technological challenges," said Ethan Matyas, Senior Vice President and Head of Delivery, North America at EPAM. "With the addition of Vates, our team continues to grow as a leader in advanced digital services in LATAM with 3,000+ employees in the region. We look forward to enhancing global delivery for clients and bringing new opportunities for local technical talent, while reinvesting in their communities."

"We're excited to join forces with EPAM and serve our clients at a greater scale with advanced technologies and services," said Mario Barra, Co-Founder of Vates. "Together, we combine an unmatched software engineering heritage and creativity to deliver enhanced multidisciplinary engagements to customers in the Americas and worldwide."

In recent years, EPAM has been rapidly expanding in LATAM by adding offices in Bogotá and Medellín, Colombia, and acquiring Colombia-based S4N to help build a more agile, diverse global delivery organization. In the process, EPAM has been recognized as a Preferred Tech Company Among Young Professional in Colombia, Top 10 Best Companies for Young Professionals in Mexico, Newsweek Top 100 Most Loved Workplace and top employer in multiple locations worldwide by Glassdoor, Great Place to Work, Built In and Kununu.

Bernardo Barra, CEO of Vates, said, "We are thrilled to embark on a new and exciting journey with EPAM, a natural partner that shares our company values and vision for growth. Our leadership team will stay in place as we maintain our dedication to our clients and employees and explore new possibilities that leverage our combined expertise and strengths in software engineering, design, cloud, data and AI."

To learn about career opportunities at EPAM in LATAM, visit https://www.epam.com/careers/epam-latin-america. 

ABOUT EPAM SYSTEMS
Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients' transformation challenges by fusing EPAM Continuum's integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients' time to market and drive greater value from their innovations and digital investments.

We deliver globally, but engage locally with our expert teams of consultants, architects, designers and engineers, making the future real for our clients, our partners and our people around the world.

We believe the right solutions are the ones that improve people's lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.

Added to the S&P 500 and the Forbes Global 2000 in 2021 and recognized by Glassdoor as a Best Workplace in 2023 and 2024, our multidisciplinary teams serve customers across six continents. We are proud to be among the top 15 companies in Information Technology Services in the Fortune 1000 and to be recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services and Worldwide Software Engineering Services as well as a leader in the 2023 Gartner^® Magic Quadrant^™ for Custom Software Development Services, Worldwide.^*

Learn more at www.epam.com and follow us on LinkedIn.

*Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 

Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets and the broader economy, and the effect that these events may have on customer demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

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SOURCE EPAM Systems, Inc.

FAQ

What did EPAM Systems, Inc. announce regarding Vates S.A.?

EPAM Systems, Inc. announced the acquisition of Vates S.A., a software development company.

What are the key capabilities that Vates S.A. will bring to EPAM Systems, Inc.?

Vates S.A. will enhance EPAM's software development portfolio and diversify its Latin America delivery capabilities, including cloud, testing, and Atlassian platform knowledge.

Which industries does Vates S.A. cater to?

Vates S.A. delivers end-to-end solutions for leading enterprise clients across industries like finance, healthcare, high-tech, media, and telecommunications.

What are some services provided by Vates S.A.?

Vates S.A. provides services such as custom software development, application testing, digital consulting, system integrations, big data analysis, and IT maintenance and support.

How many engineers does Vates S.A. bring to EPAM Systems, Inc.?

Vates S.A. brings a team of 500+ talented engineers to EPAM Systems, Inc.