Digital transformation solutions provider GFT Technologies has announced its agreement to acquire 100% of shares in Colombia-based core banking specialist Sophos Solutions.

This strategic move positions GFT among the top three banking IT services providers across Latin America and enhances its global delivery capability. The acquisition, made from Advent International, underscores GFT’s commitment to sustained growth and profitability.

The acquisition of Sophos Solutions provides GFT with a new stronghold in core banking solutions, artificial intelligence (AI), and cloud modernisation. Additionally, it expands GFT’s portfolio of partners and clients, including some of Colombia’s most prominent financial institutions.

With this acquisition, GFT expands its presence to 20 countries, with six of them located in Latin America, including Brazil, Mexico, Costa Rica, Colombia, Chile, and Panama. The combined impact of both companies positions GFT as a top three provider of IT services for banking across Latin America.

Sophos Solutions, boasting a workforce of over 1,700 employees, will significantly boost GFT’s global headcount by almost 20 percent, bringing it to more than 12,000 employees. This marks the largest talent addition in a single acquisition in GFT’s history.

The transaction is expected to be finalised in early February 2024. In 2022, Sophos reported revenues of approximately €60m, while GFT reported revenues exceeding €730m worldwide.

GFT CEO Marika Lulay said: “In this strategic acquisition, we’re not just merging companies; we’re multiplying potential.

“It is a logical continuation of our successful strategy for growth and profitability. All aspects of Sophos are highly valuable to us. From the new colleagues, new competencies and new clients to the new partners for core banking solutions, such as Oracle Flexcube.

“All this results in high traction for GFT in Latin America’s third-largest market Colombia, plus exponential growth scope in the Americas and beyond.”

Sophos Solutions is renowned for its expertise in core banking, AI, and cloud modernisation, as well as its focus on innovation and digital transformation. GFT clients stand to benefit from expanded delivery capacity and access to new expertise, including solutions for core banking with Sophos’ established partners.

On the other hand, Sophos’ clients gain access to GFT’s extensive talent pool, along with its experience in implementing next-generation technology, partnerships like Thought Machine, and pre-built solutions. This translates into a shorter time to market and more effective service delivery for all clients.

Sophos CEO Felipe Villa said: “For everyone at Sophos, it is a great opportunity to become part of GFT.

“I see a perfect fit with combined expertise and global presence of Sophos and GFT. This will enable us to even better support our clients on their digital transformation journey – great news for our employees and their career development, as well as for our clients.

“We are grateful to Advent for taking our company to the next level.”

Canaccord Genuity is serving as the exclusive financial advisor to Advent and Sophos for this transaction.