Subsidiary TOTVS Nordeste Software closed the deal, which could also include an additional US$2.2 million (R$5 million), depending on the ability of RMS to meet certain set targets over the next 12 months.
RMS develops software solutions, management tools and IT services for retailers and supermarkets. Founded in 1991 and headquartered in Barueri, it serves more than 120 clients and boasts operations in Brazil, Mexico, Portugal, Angola, Italy, Spain, Russia and Poland. It grossed US$8.5 million (R$19.2 million) in 2012.
This buy comes as part of the overall strategy being employed by TOTVS in consolidating its reach across the various sub-sectors tied to its business. “With this announcement, the market now has a robust supplier that responds to the needs, legislation and opportunities of the segment. Until now, here hasn’t been a major national provider with software that so adheres to the necessities of supermarket retailers in Brazil. This union differentiates TOTVS’s offer as a complete solution that is capable of integrating the entire supermarket process chain,” declared TOTVS in communication directed at the Securities and Exchange Commission of Brazil.
The communication continued, “With this move, TOTVS reinforces the strategy of specialization and positioning in retail and supermarkets, combining its force in distribution and customer service with the products and know-how of RM’s businesses.”
TOTVS is on its way to becoming one of Latin America’s biggest tech success stories. Already the largest enterprise software company in the region, it has been recognized internationally and has proven aggressive in its expansion, opening an R&D facility in the U.S. last year.
The company has also become increasingly active in the investment realm, its venture capital arm TOTVS Ventures having invested in Brazilian companies ZeroPaper and u.Mov.me as well as the U.S.-based GoodData.