Globant SA, an Argentine software company, has acquired a majority stake in the creative agency GUT, marking a strategic push towards marketing services as an essential catalyst for its expansion.
This investment adds to Globant’s efforts in artificial intelligence solutions, consolidating its presence in the creative field by supporting Miami-based GUT.
The advertising agency, recognized with 35 awards and the title of Independent Network of the Year at Cannes Lions, boasts prominent clients such as Anheuser-Busch InBev SA, Kraft Heinz Co, and Coca-Cola Co. The acquisition amount has not been disclosed by Globant.
“With this, we are completing the range of offerings to provide a comprehensive offering to our clients. The market demands more integration between technology and how we communicate with our consumers and clients; that is the core of our conversation with GUT,” highlighted Globant CEO Martin Migoya in an interview with Bloomberg.
This operation is part of an ambitious plan by Globant to invest USD$1 billion in Latin America, aimed at developing artificial intelligence operations and hiring 20,000 employees in the next five years.
Currently with more than 27,500 employees, Globant will focus the funds on key areas of marketing, business, and digital. Although details about the amount already deployed were not provided, the significant investment was emphasized.
GUT considers this partnership as an opportunity to collaborate with a ‘visionary’ technology company, according to its co-founder Anselmo Ramos, who highlighted the creative potential that artificial intelligence brings to the creative process. GUT will continue to operate independently under its current leadership.
Globant, with its recent partnerships with prominent sports entities and its growing presence in sectors such as banking, automotive, and airlines, positions itself as a significant player in the convergence of technology and marketing.
The company reported revenues of USD$543 million in the third quarter, surpassing analysts’ expectations.
Although the shares have experienced a 29% increase this year, amid the technological boom, the company has 15 ‘buy’ recommendations according to Bloomberg data.
Addressing the situation in Argentina, Globant’s CEO Migoya praised the proposed dollarization by President-elect Javier Milei and deemed it a ‘blessing.’
“Having a stable currency is what Argentina needs to develop and progress. Any method that leads us to that is a blessing. As for us, we have been dollarized for years, so there will be no difference,” assured the executive.
