Information on the Target

Optare Solutions is a leading consulting firm in the telecommunications sector, specializing in innovative and customized solutions for operators. The company focuses on optimizing networks, managing customer experience, and utilizing advanced analytics to help clients achieve operational excellence and remain competitive in an ever-evolving market. With a workforce of nearly 150 professionals and operations in five countries, Optare Solutions has successfully completed over 2,000 projects across more than 25 countries, collaborating with over 30 telecommunications operators.

Since October 2024, Optare Solutions has been publicly listed on the BME Growth market (BME: OPTS), which presents new opportunities for its international expansion and development.

Industry Overview in Mexico

The telecommunications industry in Mexico has seen significant growth over the past decade, characterized by rapid technological advancements and increasing consumer demand for internet connectivity and mobile services. With a strong push towards digital transformation, companies in the sector are exploring innovations to improve service offerings and operational efficiencies.

In recent years, regulatory reforms aimed at increasing competition have contributed to a more vibrant market landscape. These reforms have enabled both local and foreign players to enter the industry, thereby enhancing customer choices and service quality. Mexico is regarded as a key player in Latin America, with substantial investments directed towards infrastructure development and digital services.

The increasing smartphone penetration in Mexico also plays a pivotal role in driving the growth of telecommunications services. As users demand more ubiquitous access to high-speed internet, operators are compelled to adapt their offerings to meet the evolving market expectations.

Additionally, the government's commitment to improving connectivity across the country aligns with the objectives of sustainable economic growth and social inclusion. Key initiatives are set to bolster investment levels and facilitate the growth of the telecommunications ecosystem in Mexico.

The Rationale Behind the Deal

This strategic acquisition of Cinko Shared Service Center is a crucial step for Optare Solutions in enhancing its service portfolio and fortifying its presence in the Mexican market, where it has operated for a decade. With the support of a €238,000 loan from COFIDES, the company aims to broaden its operational capabilities and contribute significantly to its growth strategy in Latin America.

Furthermore, this merger aligns with the Sustainable Development Goals (SDGs) by promoting gender equality and decent work, thereby fostering proper economic growth within the local community.

Information about the Investor

COFIDES is a state-owned commercial entity that manages various state financial funds, alongside its own resources and those from third-party institutions. Its focus includes promoting the internationalization of the Spanish economy, attracting foreign investment in key sectors within Spain, and enhancing the impact economy. COFIDES predominantly receives funding from the state, which holds a majority stake, with participation from major banks such as Banco Santander, BBVA, Banco Sabadell, and CAF-Banco de Desarrollo de América Latina.

COFIDES plays an important role in fostering the growth of ambitious companies like Optare Solutions, which are committed to innovation and technological advancements, essential elements in addressing the challenges of digital transformation.

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From an analytical perspective, this acquisition can be seen as a promising investment opportunity for both Optare Solutions and COFIDES. The telecommunications sector in Mexico is ripe for expansion, and by acquiring Cinko Shared Service Center, Optare Solutions positions itself to capitalize on the market's growth potential. The move enhances its competitive edge while enabling it to deliver a more comprehensive suite of services to clients.

Moreover, the backing from COFIDES underscores the commitment to supporting innovative enterprises in their growth aspirations. This partnership not only aids Optare Solutions in extending its operational footprint but also aligns with broader economic goals such as employment generation and sustainable development.

Overall, this strategic endeavor marks a significant milestone in Optare Solutions' trajectory and reflects the potential for substantial returns on this investment. By continuing to pursue opportunities that leverage innovation and digital transformation, the company can solidify its market position in Latin America and enhance its long-term sustainability.

In conclusion, the acquisition represents a strategic alignment of interests between Optare Solutions and COFIDES and bodes well for both parties. The decision to expand in a key market like Mexico is a testament to Optare Solutions' growth ambitions and commitment to delivering enhanced value to its clients.

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