Latin America News Q1 2019

LATINAMERICANEWS / Q1 2019 5 NEWS , Evernex, the global third-party maintenance provider for datacenter hardware & critical IT equipment such as servers, storage and network equipment, has agreed to acquire A Systems, the leading third-party maintenance services provider in Brazil. Evernex has a substantial presence and commitment to Latin America. The group operates through subsidiaries in Brazil, Mexico and Chile. Evernex has over 21 forward stock locations in Latin America and maintains over 7 700 critical assets in the region. Through this transaction, Evernex will continue to expand its regional footprint, creating a platform for further growth across Latin America. A Systems was founded in 1996 and is today a market leader in the Brazilian third-party maintenance services market. The company provides maintenance and equipment rental services for datacenter hardware & critical IT equipment, offering tailored solutions to customers all over the country and across all industries. Andre Melo, Managing Partner at A Systems, stated: “We have built a strong reputation among our customers, who recognize our high level of quality, cost effectiveness and reliable services, including customized support options and flexible service level agreements. We take great pride in our technical excellence and we continuously invest in technical competences and people to remain relevant for our customers. Today’s acquisition is testament to our team’s hard work and dedication and we look forward to becoming part of the Evernex team.” Stanislas Pilot, Chief Executive Officer of Evernex, said: “A Systems enjoys strong brand recognition in Brazil and they have demonstrated robust growth. We are delighted that they have agreed to join forces with Evernex, creating an even stronger business, able to serve more customers across Latin America and globally. We view the Brazilian economy positively and we believe that presents significant opportunities for growth. I look forward to working with Andre as we build a combined platform to serve our customers’ growing demand for maintenance services.” Cyril Bourdarot, Associate Director at The Carlyle Group, added: “A Systems is the fourth acquisition completed by Evernex over the past 24 months and is a perfect fit for the Group’s focused external growth strategy given its leading position in a strategic geography.” Vladimir Lasocki, Managing Director at The Carlyle Group, concluded: “Evernex stands out in the third-party maintenance industry for its global presence, vertical integration from spares sourcing and testing to on-site intervention and its flexible customer engagement model. Evernex not only has strong organic growth performance but also a proven ability to act as an industry consolidator taking advantage of the fragmented industry landscape. Our intention is to continue this consolidation strategy to support customer everywhere they need, enhance our differentiated proposition and build the uncontested global leader in the third-party maintenance market.” Ernex Continues Global Expansion And Acquires A Systems In amajor milestone, SAS has signed a strategic distribution agreement with Globalsat Group LLC, for the provision of its connectivity services includingmachine to machine (M2M) and internet of things (IoT) to Latin America from the Pearl Constellation of nano-satellites. Evernex continues global expansion and acquires A Systems, Brazil’s most successful independent third- partymaintenance services providers. Sky and Space Global has recently announced that it has reached a landmark and signed a distribution agreement with GloblSat Group LLC (GlobalSat) for the provision of narrow-band telecommunications services via nano-satellites. Under the terms of the agreement, SAS and GlobalSat have established non-exclusive commercial terms for GlobalSat to distribute, sell, market and promote SAS’ ground-breaking narrow-band connectivity solutions and respective products to its customers, affiliates, resellers, subscribers and end users within Latin America. The Latin American market consists of 64 million people with limited or no access to mobile connectivity services, representing 10% of the Latin American population and symbolising strong growth potential for SAS in this region. Once the constellation deployment has begun and as a result of this agreement, SAS expects to generate revenues of US$5 million within the first two years based on the conservative GlobalSat Group estimate, with a significant growth potential, thanks to the extensive amount of current and upcoming GlobalSat clients across the energy, government, defence, mining and agriculture sectors. Sales will commence immediately following the launch of the first batch of Pearls and the successful completion of in- orbit testing and designation as fully operational. The signing of this agreement follows completion of commercial testing with GlobalSat Group and confirms the commercial potential of SAS’ proprietary nano-satellite technology and the business model. Additional material terms of the agreement are set out below: 1. The agreement has an initial two-year term from the date the SAS network is operational (with a possible option to extend). 2. Notwithstanding the fact that the agreement is binding, the parties have agreed to negotiate and execute a more definitive agreement within 60 days, on terms consistent with the agreement signed. 3. Pricing for M2M and IoT services has been agreed. 4. The agreement may be terminated based on standard termination events (insolvency, breach etc.) or the SAS network does not achieve KPIs (to be agreed). Sky and Space Global’s Managing Director and CEO, Mr. Meir Moalem said: “We are pleased to have finally secured a definitive supply agreement with GlobalSat. This marks a huge milestone achieved for us on the pathway to commercialising our technology. We have been working very closely with GlobalSat for a while now and look forward to seeing how this agreement unfolds.” Managing Director of GlobalSat Group, Mr. Alberto Palacios, said: “We are excited to be moving forward with Sky and Space Global and believe that we have the opportunity to significantly improve our service offering with SAS’ nano-satellite technology on board.”