NetSol Technologies, Inc., a company that designs, develops, and markets software products for various industries worldwide, announced that it has signed a Memorandum of Understanding (MOU) with Brasilinvest Group, a large private business development company headquartered in Brazil, to create a software and IT service joint venture with a main focus on catering to the Latin American IT market.
The new joint venture will leverage the NetSol platform of software products and services and the Brasilinvest Group’s regional presence to capitalize on the increased demand for enterprise software solutions in Latin America. In accordance with the terms of the MOU, the joint venture will be majority owned by NetSol and 40% owned by the Brasilinvest Group. Rodman & Renshaw, LLC, a subsidiary Rodman & Renshaw Capital Group, Inc. (RODM) and NetSol’s financial advisor, facilitated the agreement.
According to Gartner, a leader in information technology research and advisory company, the Latin American enterprise software exhibited year-over-year growth in the mid to high teens during the year 2010, nearly twice as much as the global market average. Along with India, Russia, and China, Brazil is one of the “BRIC Countries,” four of the fastest emerging markets as recognized by Goldman Sachs. Brazil is the largest economy in Latin America and one of the most rapid-growing economies in the world, achieving 7.5% year-over-year GDP growth in 2010. Business Monitor International expects that Brazil’s total software market will be worth $4.4 billion in 2011 and will increase at a compound annual growth rate of up to 16% through the year 2015.
“We are very pleased to have this opportunity to work with Brasilinvest as we move forward on our goal to expand into Latin America,” commented Najeeb Ghauri, Chairman and CEO of NetSol. “Our target market, comprised of both multinational and local leasing and finance companies, has an established and growing presence in Brazil. Partnering with Mario Garnero, a leading businessman, and his organization, an entrenched player in the region, will set the stage for NetSol to make a strong entrance into this dynamic market.”
The Brasilinvest Group manages a diverse portfolio of investments and projects with a value of over $3 billion, making it one of the top 150 private groups in Brazil by net assets. In its 36-year history, the Brasilinvest Group has finished a large number of projects, which includes the privatization of Telia, Sweden’s leading mobile network operator ($1 billion), and the financial structuring of Sulbrasileiro Credito Imobilario ($980 million). Its current projects include the Tres Pontes do Atibaia Real Estate project in Sao Paolo, which is valued at $650 billion, and a joint venture worth $1.7 billion between an important royal Saudi group and a South American oil and gas leader. The Brasilinvest Group’s Board of Advisors consists of business leaders from various sectors and geographic regions. Shareholders include Mercedez Benz, Seiko, Nestle AG, Xerox Corp. and HSBC.
Mario Garnero, the founder of Brasilinvest Group in 1975, is one of Brazil’s most distinguished entrepreneurs. He previously was positioned as the Director of Volkswagen do Brasil, President of the National Confederation of Industry, and as a member of the Brazil’s National Energy Commission. As the Chairman of NEC do Brasilin in the early 1990s, Mr. Garnero was influential in bringing forth mobile technology to Brazil. He currently serves as the President of the Interamerican Institute for Juridical Studies in Mercosur, president of the Forum of the Americas, and the president of the United Narions Association-Brazil.
Mario Garnero, Founder and Chairman of the Brasilinvest Group, stated, “We are extremely excited to partner with NetSol, which is a proven global leader in its industry, and we look forward to our role in making NetSol’s value proposition a success in the burgeoning IT market within the fast-growing Latin American region. Our broad experience in the automotive, finance and IT sectors positions us well to bring great value to this joint venture relationship.”
For more information on NetSol Technologies, visit their company website at: http://www.netsoltech.com
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