Globant Acquires Majority Stake in Walmeric

Globant (GLOB) has acquired an 80% stake in Walmeric as it moves to strengthen its digital sales product portfolio. The purchase agreement also includes a provision that allows the company to acquire the remaining stake over a three-year term.

The agreement is expected to reinforce Globant’s capabilities in digital marketing while also gaining access to valuable assets for identifying new customers and managing revenue. (See Globant stock charts on TipRanks)

Walmeric specializes in the development of marketing and automation technology. Its core product is Delio, a cloud-based solution that helps customers track leads, discover their interests, and convert them into sales. It also operates a marketing platform with strong business-to-business-to-consumer expertise tailored for lead generation and revenue management.

A merger with Globant should allow Walmeric to offer its clients stability and scalability while leveraging consultative models integrated with powerful technology. Additionally, it joins Globant with over 30 collaborators and a sound consumer portfolio in key areas of insurance, energy, utility, and banking. Its customer portfolio includes Ibex35 and FTSE100.

Globant Chief Corporate Development Officer Martín Umaran said, “Their highly-effective and unique portfolio of products will complement our actual offering to broaden our presence from Europe to the world.”

In May, Morgan Stanley analyst Cesar Medina reiterated a Buy rating on Globant but raised his price target to $250 from $245, implying 15.68% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 2 Buys and 3 Holds. The average Globant price target of $235.80 implies 9.11% upside potential to current levels.

GLOB scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.