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Contxto – Earlier this month, Essential Services Group, a telecom infrastructure corporation, formalized the acquisition of AmigoCloud for US$16 million. Although the transaction concluded three weeks ago, news just broke that the CEO and co-founder of AmigoCloud, Ragi Burhum, made the announcement during a conference.
AmigoCloud, the Peruvian geospatial platform that enables users to collect, manage, analyze, visualize, and publish location data, confirmed the transaction. The talks started a year ago in hopes of raising fresh funding. Nevertheless, negotiations took a slight turn.
“One of our clients, Bravo Environment, had been using our software for several years,” said Burhum. “Essential Services Group approached Bravo to buy them and they showed them the maps and (our) software and started talking to us. The purchase offer came later and materialized three weeks ago.”
Although the company began in 2013 in San Francisco, Burhum is “made in Peru,” according to his Twitter bio. It wasn’t until 2018 that the company set its eyes on Latin America, eventually establishing business operations in Peru.
Keeping this in mind, the startup intends to attract new clients to the region. After billing over US$2 million by August 2018, the company expected to grow at 350 percent that same year.
“I am very excited about the opportunities we are receiving through this acquisition,” said Burhum, regarding the purchase operation. In regards to participation from the US group, the executive indicated that it is the majority.
“All shareholders have a great opportunity for growth. I would not be surprised if these actions that we are getting are worth 10 or 15 times with all the synergies of the companies that we are coordinating.”
While the deal concluded three weeks ago, news broke yesterday while Burhum announced the acquisition in front of other founders and investors at a conference. According to the AmigoCloud founder, he’s still going to remain in the company, in spite of the transaction.
“My work has not ended there, it’s just starting,” said Burhum.
The startup will continue developing current projects, such as a geo-mapping project in collaboration with Peru’s National Commission of Aerospatial Research and Development (CONIDA). The two signed an agreement last year.
This project, the Peru SAT-1, will allow the organization to make 3D images plus calculate reliefs and certain spectral forms to detect specific soil materials. Such information will reportedly help prevent natural disasters. Additionally, it will assist in the identification of potential zones affected by illegal logging.
The startup is also working with the Municipality of San Sebastián in Cusco to allow government officials to update its database of properties. This is to properly implement taxation and potentially increase tax collection.