GeneXus Acquisition: Key Details, Impact, and What Comes Next

Globant's acquisition of GeneXus marks a significant move in the tech industry, enhancing Globant's capabilities in digital transformation. By integrating GeneXus's low-code platform, Globant aims to accelerate business reinvention and expand its product portfolio, particularly in Latin America and Asia. This strategic acquisition underscores Globant's commitment to delivering faster, high-quality digital solutions.

What Is GeneXus?

Founded in 1988, GeneXus offers an AI-powered enterprise low-code platform that automates the creation and evolution of applications. Its core products include GeneXus Next, Globant Enterprise AI, GeneXus BPM Suite, GeneXus Server, Generators, GeneXus Query, GXtest, and GeneXus for Super Apps. Unique selling points include AI-powered automation, technology agnosticism, future-proofing, and a comprehensive suite of tools, making software development accessible to users with varying technical expertise.

Who Acquired GeneXus?

Globant is a leading technology company specializing in AI-driven software development and digital transformation. It offers a range of services including industry-specific AI solutions, enterprise AI, and connected experiences. Key products include Augoor, BeHealthy, GeneXus, Magnifai, StarMeUp, WaaSabi, and Walmeric. With over 31,200 employees in 35 countries, Globant is recognized as a top player in the IT services industry, known for its innovation and significant market influence.

When Was GeneXus Acquired?

Globant acquired GeneXus on April 20, 2022. This acquisition came at a time when the tech industry was increasingly focusing on low-code platforms to accelerate digital transformation. The move aligns with industry trends emphasizing AI-driven solutions and rapid business reinvention. By integrating GeneXus's AI-enriched low-code platform, Globant aims to enhance its product offerings and meet the evolving expectations of end-users, particularly in Latin America and Asia.

Why Was GeneXus Acquired?

Market Expansion:

• The acquisition of GeneXus will help Globant expand its market presence, particularly in Latin America and Asia, where GeneXus already has a strong foothold with over 1,700 companies using its platform. This includes notable clients like Mitsubishi Electric, Itaú, and Honda.
• Globant's recent investment in a new delivery center in Santiago, Chile, further indicates a strategic push into new geographical markets, leveraging GeneXus's established client base in these regions.

Technology Integration:

• GeneXus's low-code platform, enriched with Artificial Intelligence (AI) features, will be integrated into Globant's product division, Globant X. This integration aims to enhance Globant's ability to deliver faster and high-quality digital transformation solutions.
• The platform simplifies software development and evolution, making it a valuable addition to Globant's technology stack and enabling the creation of end-to-end solutions for various devices.

Competitive Advantage:

• By acquiring GeneXus, Globant positions itself as one of the first leading digital players to invest in a low-code platform, which can significantly speed up the creation of new applications and solutions. This capability is crucial in an era where technology needs to rapidly evolve to meet end-user expectations.
• The addition of GeneXus to Globant's portfolio strengthens its competitive edge by offering a world-class low-code platform that is already trusted by major companies across various industries. The leadership and expertise of Nicolás Jodal, CEO and Co-Founder of GeneXus, joining Globant, is expected to further enhance Globant's capabilities and market reach.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified in the available information.
• Key Conditions or Agreements:
  • Completion of the transaction is subject to regulatory approvals and other customary closing conditions.
  • Nicolás Jodal, CEO and Co-Founder of GeneXus, and his team will join Globant to continue expanding GeneXus globally.
  • The acquisition aims to integrate GeneXus into Globant X, Globant's product division.

Impact on GeneXus

The acquisition of GeneXus by Globant has led to significant changes in operations and management. Nicolás Jodal, CEO and Co-Founder of GeneXus, along with his team, has joined Globant to continue expanding GeneXus globally. This integration into Globant X, Globant's product division, aims to leverage GeneXus's low-code platform enriched with AI features. The move is expected to streamline operations and foster a collaborative environment, enhancing the overall efficiency and innovation within the company.

In terms of product offerings, the acquisition has bolstered Globant's portfolio, particularly in the realm of low-code platforms. GeneXus's technology will enable faster and higher-quality digital transformation solutions, making software development more accessible and efficient. Employee reactions have been positive, with executives expressing excitement about the strategic alignment and future potential. While direct customer reactions are not detailed, the strong market presence and trust in GeneXus's platform suggest a favorable reception. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.